GameStop posts surprise profit while sales continue to decline
I don’t know if we’re allowed to talk about this stock on this sub or not, but I’ve found following it very interesting. I have no positions whatsoever. I have followed the stock for the past several years as a curiosity. Over the past year I have noticed the interesting trend of rising income and declining sales. Today it was released that the company posted a surprise profit of around $17mm, however their sales declined some 20%. So essentially the company continues to strip down as many costs as possible, which consequently causes their sales to decline. But they seemingly have enough cash and revenue trickle to eke out a profit. To me this is the essence of a zombie company. There’s no aim to make a comeback or grow revenue. They are slowly cutting off parts to show profit. What’s the end game? I can only imagine to squeeze as much liquidity out of stock sales as they wind down the company over an hour extended period of time.