GameStop (NYSE: GME) shares edged higher following its Q3 release, but so what? The report included a surprise profit, but the underlying cause and business metrics align with the trend. This company continues to contract and is consuming itself at investors' expense.

GameStop reported a third-quarter profit on Tuesday as the videogame retailer ramps up its cost-saving efforts, including shutting stores and selling higher-margin goods. CEO Ryan Cohen told investors in June the company would operate with "a smaller network and more value-added" items as a part of its attempt to boost sales and profitability.

GameStop (GME) stock is rallying today, after the video game retailer reported a surprise profit for the third quarter