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GameStop posted an adjusted profit of 16 cents per share for the
fourth quarter, compared to a loss of 47 cents a year ago,
helped by a tight lid on costs including job cuts.
The Grapevine, Texas-based company, in which billionaire
investor Ryan Cohen serves as chairman and majority shareholder,
recorded a 16% decline in costs during the quarter.
GameStop was the most-touted stock on investor-focused social
media site stocktwits.com.
"The early signs on costs are encouraging, and expect
profitability again in Q4 2023, but want to see the leverage in
the non-holiday quarters before modeling full-year positive
EBITDA," said Jefferies analyst Andrew Uerkwitz.
"Revenue headwinds in the core business remain."
Fourth-quarter revenue fell 1.2% to $2.23 billion.
Other popular stocks among retail traders also rose, with AMC
Entertainment Holdings Inc gaining 10%, while Bed Bath & Beyond
added 11%.
The high interest rate regime of the past year has roiled stock
markets, with speculative areas of the market such as meme
stocks taking a severe blow. GameStop shares slid 25% in the
past 12 months, compared to a 10.3% slide in the S&P 500.
(Reporting by Medha Singh in Bengaluru; Editing by Maju Samuel)
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