GameStop's Earnings Surprise Is Squeezing Shorts. Meme Stocks Are Rallying.

GameStop GME +4.62% ‘s first profitable quarter since January 2021 sent the stock surging. The move is squeezing short sellers and lifting AMC Entertainment AMC +3.28% and Bed Bath & Beyond BBBY +0.98% shares, too.

GameStop (ticker: GME) stock was up 49% in premarket trading after the firm reported earnings of 16 cents a share, well above the loss of 16 cents a share Wall Street analysts were expecting. AMC Entertainment Holdings (AMC) shares were up 7% and Bed Bath & Beyond (BBBY) shares were up 8%.