Meme stocks rally after GameStop posts surprise fourth-quarter profit
2023.03.22 10:03
© Reuters
By Scott Kanowsky
Investing.com — Shares in so-called meme stocks rallied in early U.S. trading on Wednesday after GameStop Corp (NYSE:) posted a surprise profit in the fourth quarter.
U.S.-based video game seller GameStop, which is majority owned by billionaire investor Ryan Cohen, adjusted earnings per share of $0.16 for the three months ended on January 28 thanks to a push to cut down on expenses. The bottom-line result – GameStop’s first profitable quarter in two years – also beat Bloomberg consensus expectations for a loss of $0.15 per share.
GameStop shares, which have been facing pressure recently after a rise in interest rates caused heavy stock market volatility, subsequently climbed by nearly 35%. The stock has fallen by a little over 25% in the past year.
The move sparked similar gains in retail-investor favorites like home goods chain Bed Bath & Beyond Inc (NASDAQ:) and movie theater operator AMC Entertainment Holdings Inc (NYSE:), as well as teledentistry firm SmileDirectClub Inc (NASDAQ:) and fashion brand Express Inc (NYSE:). Along with GameStop, many of these stocks were in focus during a surge in interest in retail trading in early 2021 that began on the social media platform Reddit.
