Shares of GameStop (GME) fell as much as 15% on Monday at the struggling video game retailer’s annual shareholder meeting, as the company provided few details about its strategy going forward.
Chairman and CEO Ryan Cohen spoke briefly at the highly anticipated meeting, emphasizing the company’s focus on achieving profitability.
“With respect to the retail business, we plan to continue to reduce costs and focus on profitability,” Cohen said, citing “a smaller network” of stores.
“We focus on building long-term shareholder value. We are not here to make promises or hype things up. We are here to work,” he added.
GamesStop shares have been volatile over the past month amid the re-emergence of retailer Keith Gill, who has fueled the meme frenzy of 2021.
GameStop has benefited from recent rallies, raising more than $3 billion in proceeds from stock offerings in the past month.
“Having a strong balance sheet, especially in times of economic uncertainty, is a strategic advantage,” Cohen said Monday.
Beyond Cohen’s opening statement, the company provided no further details about its strategy or future plans.
The shareholders’ meeting was postponed last week after a large number of listeners led to a technical problem with the stream.
The resurgence of the meme frenzy began last month, when GameStop soared 180% in the span of two days after Keith Gill, known online as Roaring Kitty, posted for the first time on social media platform X since 2021.
Earlier this month, the stock fell nearly 40% in a single day when GameStop announced its quarterly results early and filed to sell millions of shares, hours before millions of viewers tuned in to a YouTube livestream of Roaring Kitty.
“It’s going to be a bet on management. Particularly obviously Ryan, f***ing Cohen. Ryan Cohen and his team. That’s what people should be focusing on,” Gill said.
He added, “I see plenty that I think this guy could do.”
Gill also said the screenshots of GameStop holdings posted on social media were his.
“The accounts that hold my positions are mine. These are my positions. I don’t work with anyone else. I don’t work with hedge funds,” he said.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X @ines_ferre.
