What happened: GameStop (GME) stock jumped about 5% on Monday.
What's behind the move: The video game retailer announced preliminary results for its second quarter, saying it expects a boost in Q2 profit in part due to its stake in eBay (EBAY).
The video game retailer said it expects net income of $290 million to $310 million for its quarter ending Aug. 1, compared to net income of $168.6 million in the prior year's second quarter.
GameStop converted its eBay derivative position into eBay shares, which generated about $238 million in gains. The video game retailer owns 43.4 million shares of eBay common stock, valued at more than $4.9 billion. The eBay stake is doing the heavy lifting for the company's bottom line, as the company's revenue is expected to show a decline.
#game #quarter #second #expects
What's behind the move: The video game retailer announced preliminary results for its second quarter, saying it expects a boost in Q2 profit in part due to its stake in eBay (EBAY).
The video game retailer said it expects net income of $290 million to $310 million for its quarter ending Aug. 1, compared to net income of $168.6 million in the prior year's second quarter.
GameStop converted its eBay derivative position into eBay shares, which generated about $238 million in gains. The video game retailer owns 43.4 million shares of eBay common stock, valued at more than $4.9 billion. The eBay stake is doing the heavy lifting for the company's bottom line, as the company's revenue is expected to show a decline.
#game #quarter #second #expects
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