It also aims to boost its higher-margin businesses such as collectibles and toys.įurlong even said GameStop has 'a path to full-year profitability.' The company is expected to continue to cut excess costs in 2023, including winding down operations in certain countries in Europe, per Furlong. This included reducing the company's headcount and streamlining its operations. GameStop steered its way back into profitability by cutting costs and optimizing inventory in 2022, Furlong said. Shares in GameStop were up 35.1% at $23.84 apiece at last check, after closing 4.6% higher on Tuesday.

'GameStop is a much healthier business today than it was in the start of 2021,' said Matt Furlong, GameStop's CEO, at the company's earnings call on Tuesday. The company reported a profit of $48.2 million in the fourth quarter of 2022 - reversing a $147.5 million loss in the same period a year ago - despite a 1.2% decrease in revenue to $2.23 billion. Shares of GameStop, a meme stock popularized on Reddit's WallStreetBets forum, surged about 35% on Wednesday after the video game retailer posted its first quarterly profit in two years. GameStop skyrocketed in popularity in 2021 as redditors on WallStreetBets pumped so-called meme stocks.

The video-game retailer's shares surged about 35% in early trading Wednesday,

GameStop reported a surprise profit in the fourth quarter of 2022, even though revenue fell. Meme stock GameStop surges nearly 50% after it posted a surprise profit for the first time in two years.

First time meme