GameStop Corp GME Shares are higher on Wednesday after the company posted a profitable quarter for the the first time in two years.

What happened: GameStop reported revenue of $2.23 billion in the fourth quarter, beating the median analyst estimate of $2.18 billion.

The company reported adjusted earnings of 16 cents a share, slightly beating analysts’ expectations for a loss of 13 cents a share. The upside earnings surprise marks the first time GameStop has reported a profitable quarter since 2021 Gasoline Pro.

GameStop ended the fourth quarter with cash and equivalents of $1.39 billion and closed the period with inventory of $682.9 million.

The retailer said it continues to prioritize its collectibles category, highlighting recent cost-cutting initiatives, infrastructure upgrades and its forward strategy focused on efficiency, profitability and pragmatic growth.

See also: Trading strategies for GameStop Stonk after Q4 results

GameStop is trending amid the surge in stocks across various social platforms. At the time of writing, it was the top trending ticker on Stocktwits and the most mentioned name on Reddit’s r/wallstreetbets in the last 24 hours.

GameStop became popular with retail audiences in the wake of a historic short squeeze in early 2021. The stock is still fairly heavily short as 21.24% of the float is currently short, according to data from Gasoline Pro.

After the report late Tuesday Jim Cramer noted to Twitter that he expects the earnings hit to trigger increased short coverage on behalf. It appears that some of Wednesday’s moves were due to short sellers exiting their positions.

GME Price Promotion: GameStop has a 52-week high of $49.76 and a 52-week low of $15.41.

As of press time, the stock is up 47.9% to $26.09 Gasoline Pro.

Photo: JJBers by Flickr.