GameStop can score strongly with investors with a return to profitability. The video game retailer’s stock jumped 32 percent in after-hours trading. The company surprisingly announced a profit of $48.2 million for the quarter after a loss of $147.50 million a year earlier, after cutting costs and reducing its workforce.
GameStop is one of the so-called “meme stocks” that small investors call on each other to buy in relevant Internet forums, such as Reddit. This has affected hedge funds in the past, which had speculated on a price decline by short selling.
Also read: Stock market hype – that’s how dangerous the meme stocks are
