Is GameStop Stock Halal?
GameStop Corp. · GME · NYSE
GameStop Corp. (GME) does not pass Shariah screening: interest-bearing debt / market cap is 42.7% against the < 30% limit (data as of 2026-05-02), and cash + interest-bearing securities / market cap is 85.7% against the < 30% limit (data as of 2026-05-02), and impermissible income / total revenue is 7.5% against the < 5% limit (data as of 2026-05-02). Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.
Financial data as of 2026-05-02 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
GameStop is an unusual 'is it halal?' case because the problem is not what the company does — it is how the company is capitalized. GameStop's actual business, selling video games, hardware, collectibles, and electronics through stores and online, is permissible retail and clears the business-activity screen without issue.
Where it fails is the financial-ratio screens, and the cause is its post-2021 balance sheet. During the meme-stock era GameStop raised billions of dollars by issuing new shares and now sits on an enormous pile of cash and marketable securities relative to the size of its operating business. On our screen, cash plus interest-bearing securities is about 86% of market capitalization — nearly three times the 30% AAOIFI limit — its debt ratio is also above the limit, and the interest income earned on that cash hoard runs around 7.5% of revenue, above the 5% threshold. Any one of these would flag the stock; together they make it clearly non-compliant.
This is why Zoya, Musaffa, and Amal Invest all classify GameStop as not Shariah-compliant. It is a useful reminder that a permissible business can still fail screening on its financials — in GameStop's case, because so much of its market value is now interest-bearing cash rather than the retail operation itself. Muslim investors looking for retail or consumer exposure should use a screener to find names that pass on both the business and the financial tests.
Business Activity Screen
GameStop Corp. is a specialty retailer of video games, gaming hardware, collectibles, and consumer electronics, operating physical stores and e-commerce in the US and internationally. Retailing games and electronics is itself a permissible business activity.
GameStop's retail business activity is permissible — the stock fails on the financial-ratio screens, not the business screen. After raising several billion dollars through equity issuance, GameStop holds a very large cash and marketable-securities position: cash plus interest-bearing securities is roughly 86% of market capitalization, far above the 30% AAOIFI limit. Its debt-to-market-cap ratio is also above the 30% limit, and interest income earned on the large cash pile is around 7.5% of revenue, above the 5% limit. The combination of these breaches is why screeners classify it as non-compliant.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 42.7% | < 30% | Fail |
| Cash + interest-bearing securities / market cap | 85.7% | < 30% | Fail |
| Impermissible income / total revenueInterest income only — verify other impermissible revenue lines in the 10-K | 7.5% | < 5% | Fail |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-05-02 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How GameStop screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 42.7% | 85.7% | < 30% of market cap | Fail |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 42.7% | 85.7% | < 33% of market cap | Fail |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 38.0% | 76.3% | < 33.33% of total assets | Fail |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-05-02) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Zoya
Classifies GME as NOT Shariah-compliant under its AAOIFI-based methodology; dividends from a non-compliant stock are treated as impermissible income to be purified.
Source →Musaffa
Classified NOT HALAL as of December 2025 based on AAOIFI business-activity and financial-ratio screens (report source: 2025 Q3).
Source →Amal Invest
Rates GME Haram (not Shariah-compliant) as of April 2026 under AAOIFI screening — fails the financial-ratio screen due to debt and interest income.
Source →
What to do instead
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Related guides
Consider Consulting an Islamic Scholar
Major whether GameStop Corp. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
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Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- GME latest quarterly filing (balance sheet 2026-05-02)
- AAOIFI Shariah Standards
- GameStop Corp. 10-K filings (SEC EDGAR)
- Zoya — GME Shariah compliance status (not compliant)
- Musaffa — GME Shariah status (NOT HALAL, Dec 2025)
- Amal Invest — GME Shariah screening (Haram, Apr 2026)
- HalalWallet Methodology
- Editorial Policy
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