GameStop shares were rising on Monday after the retailer released preliminary second quarter results and rosy guidance, with a boost from its stake in the online auction site eBay.

Its second-quarter net income includes approximately $238 million of net gains related to that eBay investment, partially offset by a loss of approximately $75 million on digital assets and related receivables.

As of Aug. 1, it held approximately 43.4 million shares of eBay common stock with a fair value of approximately $4.947 billion.

Shares were up 3.4% at $18.47 just after 1 p.m. Eastern time. GameStop's stock is down 8.1% year to date and down 17.7% over the past 12 months.

GameStop said net income is expected to be between $290 million and $310 million, compared with a net income of $168.6 million in last year's second quarter. It said operating income is expected to be between $150 million and $170 million, compared with $66.4 million last year.

Preliminary second quarter net sales are expected to be in the range of $780 million to $800 million, compared with $972.2 million in the second quarter of 2025. The decline is primarily because of last year's launch of Nintendo Switch 2, planned store closures, and the divestiture of its operations in France.

During the quarter, GameStop converted its previously disclosed derivative position related to eBay Inc. into a direct equity investment, resulting in a decline in cash, cash equivalents, and marketable securities.

The disclosures came in connection with a separate announcement of the amendments to its convertible notes exchange. It expects to release its complete second quarter results on Sept. 8.