GameStop and AMC stocks surge after positive earnings reports.

GameStop's stock surged 40% in premarket trading after the company posted its first quarterly profit in two years, with net profits of $48.2 million. However, the company's sales fell 1.2% from the prior year to $2.23 billion amid continued pressure on software sales and more closed stores. The profitability surprise was primarily fueled by CEO Matt Furlong's cost-cutting measures, which he plans to continue in fiscal year 2023. Wall Street analysts are cautious about the sustainability of these cost cuts and want to see growth in sales to drive consistent profits.