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GameStop (GME) swung to a profit in the third quarter, even as revenue fell year-over-year. Shares surged in extended trading Tuesday on 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 isn’t widely covered by Wall Street, with Wedbush’s Michael Pachter the lone analyst tracked by Visible Alpha. In a note Friday he reiterated an “underperform” rating and $10 price target for the stock, writing that “the company’s planned return to growth faces insurmountable barriers.”
GameStop was in the meme stock spotlight again last week, when a cryptic post on X from social media influencer Keith Gill—better known as “Roaring Kitty”—sent the stock as much as 14% higher Thursday afternoon in a short-lived spike.
GameStop shares, which popped over 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 on multiple occasions for the first time since a meme trading frenzy gripped the stock in late 2020 and early 2021.
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