STOCKS | GameStop Shares Rise 5% on eBay Stake Boost to Second-Quarter Profit

GameStop shares rose about 5% in Monday morning trading after the video game retailer released preliminary second-quarter results. According to Sina Finance, the company said its second-quarter profit is expected to be boosted by gains from its eBay holdings. GameStop said net income for the quarter ended August 1 is expected to be between $290 million and $310 million, compared with $168.6 million a year earlier. The company said it converted its eBay derivative position into common shares, generating about $238 million in gains. It now holds 43.4 million eBay common shares, with a market value of more than $4.9 billion. Revenue is expected to decline, with sales forecast at $780 million to $800 million, below $972.2 million a year earlier. GameStop said it will release full second-quarter results on September 8. The company also disclosed an amended convertible note agreement earlier this month. GameStop shares are down 11% so far this year, and the company earlier made a $56 billion takeover offer for eBay that was rejected.