GameStop's stock surges 11% after Q4 earnings beat expectations, plans to invest in Bitcoin

From Nasdaq: 2025-03-26 18:46:00

GameStop’s stock surged 11% after-hours following Q4 earnings that beat expectations. The company plans to invest in Bitcoin, with a market value doubling in the past year. Despite declining revenue, GameStop’s cash reserves have grown to $4.75 billion, signaling a potential turnaround in the business.

GameStop reported Q4 net income of $131.3 million, exceeding EPS estimates of $0.09. However, Q4 sales fell short at $1.28 billion, down from $1.79 billion year over year. The company’s full-year results show a spike in annual earnings to $0.33 per share, despite a drop in total sales to $3.82 billion.

Investors are questioning whether to chase GameStop’s rally, with the stock trading at a premium despite positive management direction. The company’s decision to invest in Bitcoin and growing cash reserves indicate a potential turnaround, even amidst revenue declines. GameStop faces stiff competition in the digital gaming market from retailers like Best Buy, Walmart, and Amazon.



Read more at Nasdaq: Should Investors Chase the Rally in GameStop (GME) Stock After Q4 Earnings?