GameStop Posts Third-Quarter Profit Despite Revenue Decline
GameStop (GME) reported a third-quarter profit on Tuesday, surprising investors despite a decline in revenue compared to the same period last year. Shares jumped over 10% in after-hours trading following the announcement.
The company earned $17.4 million, or 4 cents per share, on revenue of $860.3 million. This marked a turnaround from the $3.1 million loss, or 1 cent per share, on $1.08 billion in revenue it reported a year ago.
GameStop continues to face challenges, with limited coverage from Wall Street analysts. Michael Pachter of Wedbush, the only analyst tracking the stock via Visible Alpha, reiterated an "underperform" rating and a $10 price target, citing what he called "insurmountable barriers" to the company's growth plans.
Last week, GameStop briefly returned to meme stock fame after a cryptic social media post from influencer Keith Gill, also known as "Roaring Kitty," caused shares to spike by 14% before retreating.
GameStop's stock has climbed roughly 54% in 2024 through Tuesday's close, with most of the gains occurring in May and June.
These increases were largely driven by renewed attention from Gill, who mentioned the retailer for the first time since the 2020-2021 meme trading frenzy.
GameStop (GME) reported a third-quarter profit on Tuesday, surprising investors despite a decline in revenue compared to the same period last year. Shares jumped over 10% in after-hours trading following the announcement.
The company earned $17.4 million, or 4 cents per share, on revenue of $860.3 million. This marked a turnaround from the $3.1 million loss, or 1 cent per share, on $1.08 billion in revenue it reported a year ago.
GameStop continues to face challenges, with limited coverage from Wall Street analysts. Michael Pachter of Wedbush, the only analyst tracking the stock via Visible Alpha, reiterated an "underperform" rating and a $10 price target, citing what he called "insurmountable barriers" to the company's growth plans.
Last week, GameStop briefly returned to meme stock fame after a cryptic social media post from influencer Keith Gill, also known as "Roaring Kitty," caused shares to spike by 14% before retreating.
GameStop's stock has climbed roughly 54% in 2024 through Tuesday's close, with most of the gains occurring in May and June.
These increases were largely driven by renewed attention from Gill, who mentioned the retailer for the first time since the 2020-2021 meme trading frenzy.