GME: Hold the Line - GameStop Jumps 48% on Surprise Profit

Who said diamond hands were out of fashion? Let’s take a look at why GameStop is making a comeback.

• GameStop swung to a quarterly profit for the first time in two years. The surprising news shot the meme stock higher by 48% in after-hours trading, giving the diamond hands among us a reason to drool over the opening bell in New York on Wednesday. Let’s talk about that.
• The retail traders’ darling reported earnings of 16 cents a share, compared to a loss of 49 cents in the year-ago quarter. That’s a profit of $48mn. The figure also blew past forecasts of a per-share loss of 13 cents. GameStop notched $2.23bn in sales for the quarter ended Jan. 28.
• The videogame retailer, whose stock sparked a trading revolution, had been hard at work to swing itself back to profitability. While it’s too early to say whether the meme-stock momentum is making a comeback, the short-term volatility is to many a nice trip down memory lane.