GameStop Corp (NYSE:GME) shares enjoyed an upward turn in their rollercoaster ride as the meme stock favourite posted better-than-expected figures overnight.
Strong demand for videogames, collectables and consoles saw revenue rise 2% in the quarter to the end of July, but analysts suggested that, more importantly, it was a sign that a new online strategy put in place by executive chairman Ryan Cohen was starting to work.
A major shareholder, Cohen been instrumental in rebooting the videogame retailer towards more online sales and sales of software and models.
Gamestop, which has had five chief executives in five years and lost its finance director last month, said software and collectibles contributed to about 49% of second-quarter revenue with notable sales of Diablo IV and F1 23.
"GameStop's second quarter results show encouraging signs towards the company's ongoing transformation plans to regain its presence in the video game retail industry under its new leadership," said John Oh, analyst at Third Bridge.
Losses per share in the quarter were 3c per share, compared with analysts' estimates for a loss of 14c.
Pre-opening, Gamestop shares were $19.45.