Shares of GameStop (GME:US) are trading over 40% higher on Wednesday after the video game retailer reported better-than-expected results for its fourth quarter

The company said its net sales declined by over 1% year-over-year to $2.23 billion, still better than the expected $2.18 billion. GameStop’s biggest business - Hardware and Accessories - drove the outperformance by generating $1.24 billion in sales, up 4.6% YoY.

On the other hand, software sales fell 15% YoY to $670.4 million, a bigger-than-expected decline. Finally, revenue from Collectibles rose 12% to $313.2 million. 

GameStop’s CEO Matthew Furlong said on a call with analysts that the company “is attempting to accomplish something unprecedented in retail ... seeking to transform a legacy business once on the brink of bankruptcy.”

As such, shares rose over 40% on Wednesday to hit their highest levels since last December. The rally also marked the first time GME stock hit its 200 daily moving average since October last year.

While shares opened at $26.60 on Wednesday, the initial market reaction was lower as retailer and meme stock traders likely use the run-up in shares to book profits. 

U.S. Representative Mike Garcia disclosed that he bought some GameStop shares in 2021. Earlier in the same year, former Senator Pat Toomey was trading GameStop stock.

The jump in GameStop shares ignited a rally in other meme stocks, such as movie theater operator AMC Entertainment Holdings Inc (AMC:US).