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GameStop (GME) returned to profit in the third quarter, even as revenue fell year-on-year. Shares rose in extended trading on Tuesday following the news.
The video game retailer posted a profit of $17.4 million, or 4 cents per share, on revenue of $860.3 million, compared with a loss of $3.1 million, or 1 cent per share, on revenue of $1.08 billion a year ago.
GameStop is not widely discussed on Wall Street, with Wedbush’s Michael Pachter the only analyst covered by Visible Alpha. On Friday, he reiterated an “underperform” rating and a $10 price target for the stock in a note, writing that “the company’s planned return to growth faces insurmountable barriers.”
GameStop found itself in the meme stock spotlight again last week, when a cryptic post on
GameStop shares, which rose more than 10% in extended trading, were up about 54% for 2024 through Tuesday’s close. Most of the gains this year came in May and June, after Gill posted about the retailer multiple times for the first time since a meme trading frenzy gripped the stock in late 2020 and early 2021.
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