GameStop Stock Turns Positive After Quarterly Results
By WSJ Staff
GameStop shares (GME) rose, shrugging off early declines, as investors digested quarterly results that included a 9% drop in quarterly sales and narrowing losses.
The stock was recently up a bit more than 2%. For the latest quarter, net sales were $1.08 billion, down from $1.19 billion a year earlier, GameStop said late Wednesday. Net loss was $3.1 million, versus a $94.7 million loss a year ago. Selling, general and administrative costs fell 24%.
Investors seemed to be focusing on the narrowing losses and cost reductions, leading to the positive movement in the stock price. Despite the decline in sales, the company’s efforts to cut costs and improve efficiency appear to be resonating with investors.
GameStop has been in the spotlight recently due to the surge in its stock price driven by retail investors earlier this year. The company has been working on a turnaround plan to adapt to the changing retail landscape and capitalize on the growing interest in video game and entertainment products.
The positive reaction to the quarterly results shows that investors are cautiously optimistic about GameStop’s prospects and are willing to give the company the benefit of the doubt as it continues to navigate a challenging market environment.