No need to panic, it’s not 2020 again and you’re not going stir-crazy from being locked indoors and getting into “stonks” as a result. However, the GameStop (GME) share price is once again experiencing an uncharacteristic surge after the company posted a Q4 profit, after about two straight years of reporting losses.
The company reported $48.2 million worth of income, which marks a staggering improvement on a loss of $147.5 million, which is what GameStop reported in the previous corresponding period (Q4 2021), according the company’s earnings report.
Following these perhaps unexpected results (given the gaming industry’s slow but steady shift to digital game sales), GameStop’s shared soared by as much as 39 percent in extended trade, via Bloomberg.
“GameStop is a much healthier business today than it was in the start of 2021,” CEO Matt Furlong told analysts on an earnings call. “We have a path to full-year profitability.”
Before you reopen your dormant Robinhood account and rush to “hodl” a few more GME shares, we’d exercise caution considering that GameStop did not provide an earnings outlook for 2023. So, while Furlong is confident that GameStop could be profitable this year, things could just as easily go the other way for the bricks and mortar gaming retailer. But hey, we wish we’d mined some Bitcoin in 2009 – so do whatever you want. We’re not financial advisors around here!
Say what you will about GameStop as a company, but it undoubtedly did its bit in (at least temporarily) destabilizing the stock market and the hedge funds that manage it. If you’re looking for a recap of the whole fiasco, here’s a friendly reminder that Eat the Rich: The Gamestop Saga is still streaming on Netflix.
Published: Mar 21, 2023 07:02 pm