GameStop shares climbed nearly 3% on Monday following the release of preliminary second-quarter financial results and optimistic guidance, supported in part by gains related to the company’s significant investment in eBay. The retailer reported net income expected to range between $290 million and $310 million for the quarter, up from $168.6 million in the same period last year.

The company’s strong net income was bolstered by approximately $238 million in net gains tied to its stake in eBay. At the start of August, GameStop held roughly 43.4 million shares of eBay common stock, valued at about $4.947 billion, representing 9.8% of eBay’s outstanding shares, according to FactSet. However, this gain was partly offset by a loss of around $75 million related to digital assets and associated receivables.

Despite the positive earnings performance, GameStop’s preliminary second-quarter net sales are projected to be between $780 million and $800 million, down from $972.2 million in the year-ago quarter. The decrease reflects factors such as last year’s launch of the Nintendo Switch 2, planned store closures, and the company’s sale of its French operations.

GameStop’s involvement with eBay remains a central focus. In May, the company made an unsolicited $56 billion cash-and-stock offer to acquire the online auction platform, which eBay’s board promptly rejected, describing the proposal as neither credible nor in the best interests of its shareholders. Ryan Cohen, GameStop’s activist-turned-CEO, signaled in June his continued interest in pursuing a deal with eBay.

On Monday, GameStop shares closed at $18.38, following intraday trading that saw prices as high as $18.92. The market's positive reaction underscores investor confidence fueled by the company’s earnings beat and its sizeable eBay holdings.