Video game retailer GameStop Corp. (GME) made headlines in 2021 due to the dramatic rise in its share price on speculative trading by retail investors. However, the stock could not sustain its sky-high valuation because the rally was not backed by its fundamentals.
While GME has been burdened with debt and dwindling cash, the company showed significant progress over the past year, pivoting to profitability in its fiscal fourth quarter ended January 28, 2023, after successive quarters of net loss. The company has initiated cost-cutting measures and headcount reductions to increase operational efficiency.
