$GME's Near-Record Profit Driven by eBay Stake Gain, Not Store Sales

GameStop guided to $290-$310 million in net income for the quarter, up from $169 million a year ago, but roughly $238 million of that is a paper gain on its eBay stake rather than its retail business. Actual sales fell about 19% to roughly $790 million from $972 million.
Ryan Cohen made a $56 billion run at buying eBay outright, which eBay called neither credible nor attractive.
Despite the near-record profit, GameStop shares slid from $22 to $18 over the past three months. The author notes a trading gain doesn't repeat on a schedule, while the store sales decline does.