GameStop (GME) shares are back in focus after the company joined forces with Uber Eats, allowing customers to order consoles, games, accessories, and collectibles for scheduled or on demand delivery across the United States.

The Uber Eats partnership lands at a time when GameStop’s 1 day share price return of 1.65% contrasts with a 90 day share price return that is down 14.23% and a 1 year total shareholder return that is down 5.25%, pointing to pockets of renewed interest after a weaker stretch.

If this on demand delivery push has you thinking about where else growth stories could emerge around new technology, it may be worth scanning 34 robotics and automation stocks

After GameStop’s latest move and a 1 day gain set against weaker longer term returns, the share price and the indicated intrinsic discount of about 70% point in very different directions, so where does fair value really sit?

Most Popular Narrative: 90.2% Undervalued

GameStop last closed at $21.52, while the most followed narrative puts fair value at $220, which is described as a very different view of what the stock is worth.

GameStop’s transformation from a legacy retailer to a crypto-invested, cash-rich entity, underscores its long-term growth potential. Investors might be early, but they are not necessarily wrong according to this view.

Want to understand why a retailer with billions in cash and a new business mix is seen by some as potentially justifying such a gap to $220? The narrative as presented leans heavily on rapid earnings expansion, higher margin segments and a future profit multiple usually associated with larger platform companies. Curious which profit and revenue paths are considered in that view, and how its cash pile and acquisition plans are incorporated into the valuation story?

Result: Fair Value of $220 (UNDERVALUED ACCORDING TO THIS NARRATIVE)

However, GameStop’s reliance on demand for collectibles, along with the execution risk of deploying its multibillion-dollar cash pile on large acquisitions, could still derail this bullish narrative.

Next Steps

If the split between cautious headlines and upbeat narratives around GameStop feels stark, it helps to look at the underlying data yourself and move quickly to shape your own view, starting with the 2 key rewards.

Looking for more GameStop sized investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.