Yahoo Finance GameStop stock tanks 15% during shareholder meeting as few details on strategy emerge
GameStop stock (GME) fell as much as 15% during the struggling video game retailer's annual shareholder meeting on Monday as the company gave few details on its strategy going forward.
Chairman and CEO Ryan Cohen spoke briefly during the highly anticipated gathering, emphasizing the company's focus on achieving profitability.
“With respect to retail operations, we plan to continue reducing costs and focusing on profitability,” said Cohen, citing "a smaller network" of stores.
“We are focused on building shareholder value over the long term. We are not here to make promises, or hype things up. We’re here to work,” he added.
GameStop shares have been volatile over the past month amid the reemergence of retail trader Keith Gill, credited with sparking the meme frenzy of 2021.
GameStop has capitalized on recent rallies, raising over $3 billion in proceeds from stock offerings over the past month.
“Having a strong balance sheet, especially in times of economic uncertainty, is a strategic advantage,” Cohen said on Monday.
Beyond Cohen's opening remarks, the company did not give any further details on its strategy or future plans.
The shareholder meeting was postponed last week after a high volume of listeners led to a technical glitch with the stream.
The meme frenzy revival began last month, when GameStop rallied 180% over a span of two days after Keith Gill, known as Roaring Kitty online, posted for the first time on social media platform X since 2021.
Earlier this month the stock sank nearly 40% in one day as GameStop released its quarterly results early and filed to sell millions of shares hours before millions of viewers tuned in for a YouTube livestream from Roaring Kitty.
"It becomes a bet on the management. In particular, of course, Ryan, f***ng Cohen. Ryan Cohen and his crew. That's what folks should be focused on," Gill said.
He added, "I see enough where I believe this guy may be able to do it."
Gill also said that the screenshots of GameStop holdings posted on social media were his.
"The accounts showing my positions are mine. These are my positions. I'm not working with anybody else. I'm not working with hedge funds," he said.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.