GAMESTOP LEADS MEME STOCK RALLY IN PANDEMIC TRADE COMEBACK

Meme stocks jumped this week after GameStop, one of the most heavily traded off-brand stocks during the pandemic, posted a surprise profit for the fourth quarter, its first quarterly profit in two years.

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Rather than a per-share loss of 16 cents as Wall Street had expected, the video game retailer reported a profit of 16 cents per share, or $48.2 million in all.

GameStop’s revenue fell and much of the profit gain came from aggressive cost-cutting, including store closures and layoffs. However, as was the case during the pandemic, fundamentals that typically drive stock movement appear to be being pushed aside.

Shares of GameStop Corp., Grapevine, Texas, surged 51% at the opening bell and it pulled other meme stocks along for the ride.