GameStop expected to post return to profit as traders prepare for another rollercoaster


GameStop is expected to reveal a return to profitability tomorrow in what is set to be another wild day of trading for its stocks.

The video game retailer, which has been at the centre of a battle between amateur investors and Wall Street short sellers, is expected to break its run of consecutive losses when it reveals its quarterly results tomorrow.

GameStop is predicted to post profits of $134 million on revenues of $2.2 billion over the three months to the end of January, marking its first positive period for three consecutive quarters.

This is thought to have been driven by strong demand for gaming while much of the US remains in doors, alongside the release of the next generation of gaming consoles.

However, analysts have warned that these positive figures far from justify its $14 billion market value, which has been driven up nearly 1000 per cent since the start of the year.

READ MORE: GameStop shares more than double before crashing 40% in 25 minutes amid more wild trading

GameStop stock continues to be wildly volatile, and tomorrows results are expected to spark another rollercoaster day of trading.

Earlier this month shares soared to near record highs again, jumping 150 per cent before rapidly crashing.

The New York Stock Exchange was forced to halt GameStop’s stock numerous times as a result, but this time it was unclear exactly who was responsible for driving the surge in stock prices with Reddit day traders playing a significantly smaller role.

Many have suggested that the appointment of Ryan Cohen, who has been brought on by GameStop to oversee its shift towards ecommerce, is responsible for its second rally.

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