The video game and electronics retailer had a slight dip in net sales compared to the same period last year, going from $2.25 billion to $2.23 billion. However, the profits came at $48.2 million compared to a $147.5 million loss the year before.

GameStop’s return to profitability has a lot to do with the company’s efforts to cut costs, which is something they intend to continue doing in the future.

“Looking ahead, we’re aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth,” CEO Matt Furlong said during an earnings call on Tuesday.

However, while the cost-cutting methods might be working for the company at the moment, most analysts agree this isn’t sustainable in the long run. The overall sentiment is that the company will have to find ways to remain profitable by actually increasing its sales.

After closing at $17.64 per share on Tuesday, the GameStop stock surged to the $26.76 mark early on Wednesday. This represents their highest price since late 2022. The company’s shares later stabilized at around $24 later in the day.

The post GameStop Has First Quarterly Profit in 2 Years, Sees Huge Stock Jump appeared first on theprimarymarket.com.

GameStop’s board voted in favor of a 4-for-1 stock split on Wednesday. The decision won’t affect the value of the investment for the current shareholders, but the number of their shares will increase in a way that they’ll receive three extra shares for every share they now own. On the other hand, owning GameStop stock (GME) will become much easier for the new investors as the shares will be four times cheaper. The stock split will become effective on July 22.

GME closed at $117.43 on Wednesday before surging to $134.81 at one point following the stock split announcement. It later settled at 133.76 in extended trading, which marked a 14% daily increase.

Stock splits have recently become quite a popular trend, especially among tech companies. For example, e-commerce giant Amazon and Google’s parent company Alphabet had 20-for-1 splits in June while electric car maker Tesla announced a 3-for-1 stock split earlier this year. There are several reasons why companies decide to do a stock split, but probably the most common one is to make shares available to individual investors and increase the demand. 

The post GameStop Shares Surge After Stock Split Announcement appeared first on theprimarymarket.com.

The video game and electronics retailer had a slight dip in net sales compared to the same period last year, going from $2.25 billion to $2.23 billion. However, the profits came at $48.2 million compared to a $147.5 million loss the year before.

GameStop’s return to profitability has a lot to do with the company’s efforts to cut costs, which is something they intend to continue doing in the future.

“Looking ahead, we’re aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth,” CEO Matt Furlong said during an earnings call on Tuesday.

However, while the cost-cutting methods might be working for the company at the moment, most analysts agree this isn’t sustainable in the long run. The overall sentiment is that the company will have to find ways to remain profitable by actually increasing its sales.

After closing at $17.64 per share on Tuesday, the GameStop stock surged to the $26.76 mark early on Wednesday. This represents their highest price since late 2022. The company’s shares later stabilized at around $24 later in the day.

The post GameStop Has First Quarterly Profit in 2 Years, Sees Huge Stock Jump appeared first on theprimarymarket.com.

GameStop’s board voted in favor of a 4-for-1 stock split on Wednesday. The decision won’t affect the value of the investment for the current shareholders, but the number of their shares will increase in a way that they’ll receive three extra shares for every share they now own. On the other hand, owning GameStop stock (GME) will become much easier for the new investors as the shares will be four times cheaper. The stock split will become effective on July 22.

GME closed at $117.43 on Wednesday before surging to $134.81 at one point following the stock split announcement. It later settled at 133.76 in extended trading, which marked a 14% daily increase.

Stock splits have recently become quite a popular trend, especially among tech companies. For example, e-commerce giant Amazon and Google’s parent company Alphabet had 20-for-1 splits in June while electric car maker Tesla announced a 3-for-1 stock split earlier this year. There are several reasons why companies decide to do a stock split, but probably the most common one is to make shares available to individual investors and increase the demand. 

The post GameStop Shares Surge After Stock Split Announcement appeared first on theprimarymarket.com.