GameStop Reports Surprise Profit, Shares Jump

Lower costs and job cuts help retailer turn around business

Shares end Friday's session up 29.1%, continuing their rally

GameStop Corp. (GME) reported a surprise profit for the fourth quarter on Tuesday, its first since early 2021. The retailer benefited from lower costs and job cuts.

Shares of GameStop ended Friday's session up 29.1%, continuing their rally. The stock has now gained more than 100% since the start of the year.

GameStop's turnaround is a welcome sign for investors who have been battered by the company's losses in recent years. The retailer has been struggling to compete with online retailers and has been closing stores.

However, GameStop has been taking steps to improve its business. The company has been cutting costs and investing in its e-commerce operations.

The fourth-quarter profit is a sign that GameStop's turnaround is on track. The company is now profitable and its shares are rallying.