GameStop , the American video game giant after loss for over 24 months , has recently posted a growth of 50% in its shares after company revealed its 20221 Q4 net income of $48.2 Million .
Although net sales in 2021 were $6.011 billion as compare to sale in 2022 in were 5.927 billion ,the company was still able to post revenue of $2.23 billion, beating the Street estimate of $2.18B .
The company was able to achieve profit after it did staff reduction and paused investments in its tech-oriented turnaround plan and reduction in expenses by nearly 15% over the last year. The organization is supposed to keep on reducing overabundance expenses in 2023, by closing down facilities in few European countries, per Furlong. It additionally plans to help its higher-edge organizations like collectibles and toys.
It also reported a robust cash position of $1.4 billion, an additional $400 million compared to the previous quarter.
GameStop share skyrocketed when retail investors used the wallstreetbets subreddit to identify and pumped the so called meme stocks.