Meme stock GameStop soars after announcement of profitable quarter

Major meme stock, GameStop, saw a surge in its stock prices after it reported its first profitable quarter in two years. The stock prices were up to 50% in pre-market trading and rose more than 37% after the opening. The company announced an adjusted profit of 16 cents per share for the fourth quarter, up from a 47-cent-per-share loss the previous quarter.

The CEO of GameStop, Matt Furlong, said that the company is currently in a better position than 2021 when many had predicted heading for bankruptcy. CNBC reported that “GameStop is a much healthier business today than it was at the start of 2021,” said Furlong during a call with investors.

GameStop was the leading meme stock that investors piled into back in 2021, and its unexpected pop this week has also affected other meme stocks such as Carvana’s stock, which was up nearly 17%, Bed Bath and Beyond’s shares, which were trading about 3% higher, and AMC Entertainment.

Wall Street has been volatile, and traders were watching the Federal Reserve closely ahead of its interest rate decision. It is worth noting that Carvana announced a $1 billion debt swap to restructure its debt.