GameStop Shares Surge After Posting a Quarterly Profit

GameStop, the video game retailer that captured headlines during the "meme stock" frenzy earlier this year, has posted its first quarterly profit in two years.

For the quarter ending January 28th, the company reported a profit of $48.2 million, compared to a loss of $147.5 million the previous year.

Despite a slight drop in net sales, GameStop's efforts to reduce costs and improve profitability seem to be paying off.

Investors responded positively to the news, with the company's stock surging by 35% during after-hours trading.

GameStop has been working to revamp its real estate portfolio and increase its online presence, as the video game industry shifts in that direction.

The retailer has also been experimenting with new ventures, such as an NFT marketplace, but these have not yet yielded significant results.

GameStop's turnaround plan has been given a boost by a leadership shake-up earlier this year, which saw Amazon veteran Matt Furlong take over as CEO and Chewy founder Ryan Cohen become board chair.

The company has also laid off staff and replaced its chief financial officer. However, GameStop still faces challenges such as supply chain delays and a backlog of inventory.

The retailer's results cannot be compared to Wall Street estimates, as too few analysts cover the company.

Despite this, GameStop's recent performance has given investors hope that the company can turn its fortunes around and establish a stable digital presence.