Why GameStop Shares Are Spiking After-Hours - GameStop (NYSE:GME)

Core Insights - GameStop Corp. shares increased by 5.72% to $24.94 in after-hours trading following strong Q2 earnings and a special dividend announcement [1] Financial Performance - GameStop reported Q2 net sales of $972.2 million, up from $798.3 million year-over-year, surpassing Wall Street's estimate of $823.2 million [2] - Earnings per share reached 25 cents, exceeding the expected 16 cents, while net income rose to $168.6 million from $14.8 million in the same quarter last year [2] Segment Performance - Hardware & Accessories revenue increased to $592.1 million from $451.2 million, a change of +$140.9 million - Collectibles revenue rose to $227.6 million from $139.4 million, a change of +$88.2 million - Software revenue decreased to $152.5 million from $207.7 million, a change of -$55.2 million [3] Special Dividend Announcement - GameStop announced a special dividend, offering one warrant for every 10 shares owned as of October 3, with approximately 59 million warrants expected to be distributed around October 7 [4] Warrant Details - Each warrant has an exercise price of $32 and will expire on October 30, potentially raising up to $1.9 billion if fully exercised for general business needs and acquisitions [5] - The transaction allows shareholders to participate in capital raising on a non-dilutive basis [5] Stock Performance - GameStop's stock has fluctuated between $19.31 and $35.81 over the past year, with a market cap of $10.55 billion and a price-to-earnings ratio of 51.13 [6] - The average daily trading volume is 6.59 million shares, and the stock closed at $23.59, up 2.72% [6]