Stock price fell more than 10% after hours! GameStop's Q2 revenue fell 31% year-on-year, unexpectedly turning losses into profits

According to the financial news app Zhitong Finance, the electronic game retailer GameStop (GME.US) saw its sales decline for the fourth consecutive quarter, but surprisingly managed to achieve profitability. Data shows that as of the second quarter ending on August 3, the company's revenue decreased by 31% year-on-year to $798 million, below market expectations of $896 million; net profit was $14.8 million, compared to a loss of $2.8 million in the same period last year; earnings per share were $0.01, while the market expected a loss of $0.09 per share. GameStop has not yet formulated a clear growth strategy as its physical retail business struggles to adapt to the shift from physical discs to software downloads in the gaming industry. The company has not held earnings conference calls for several quarters nor provided financial guidance, leaving investors largely in the dark. Wedbush analyst Michael Pachter stated, "The company still faces almost insurmountable obstacles in its growth recovery plan." The company "completely lacks a strategy to enter new areas with growth potential." Wedbush rates GameStop as "underperforming the market." Sales of hardware, software, and collectibles all declined compared to the previous year. Specifically, hardware sales decreased by 24.5% year-on-year to $451 million; software sales decreased by 47.6% to $208 million; collectibles sales decreased by 18.1% to $139 million. GameStop's stock price continues to be impacted by the "meme stock" trading community. In June this year, when "retail investor leader" Keith Gill returned to YouTube, GameStop's stock price surged, allowing the company to raise $2.14 billion. GameStop's market value is approximately $10 billion. GameStop CEO Ryan Cohen stated at the company's shareholder meeting in June that he would avoid stock trading "hype" and focus on achieving profitability. He said, "Revenue without profit and future cash flow prospects is worthless to shareholders." He mentioned that the plan to achieve this goal is to operate a small network of stores selling higher-value goods. As of the time of writing, GameStop fell by 10.15% in after-hours trading, to $21.07. The stock has still risen by nearly 34% year-to-date