GameStop's First Profit in Two Years Sends Shares Soaring.

GameStop reported a surprise profit of $48.2 million in Q4 2022, the first profit in two years, and beat analysts' estimates for revenue, sending shares soaring as much as 39% in extended trading. The company's sales fell 1.2% to $2.23 billion in the same period, but sales in physical collectibles rose 12% to $313.2 million. GameStop has struggled with profitability as the games industry has moved away from physical discs to online downloads, but CEO Matt Furlong said the company is now "much healthier" and has a path to full-year profitability. Activist investor Ryan Cohen joined GameStop's board and became its chairman in 2021, embarking on a reorganization that included ousting the CFO and company-wide layoffs.