GameStop Stock Plunges After Unspecific Plans at Shareholder Meeting

GameStop

GameStop (NYSE:GME) shares declined on Monday following the company’s annual shareholder meeting, which failed to provide investors with concrete future plans.

GameStop (NYSE:GME) stock fell by more than 12% after the meeting, which did not offer any detailed information on the company’s strategic direction.

During the annual shareholder meeting, GameStop CEO Ryan Cohen stated that the struggling video game retailer would focus on cost reduction and long-term profitability.

Cohen indicated that this would include a “smaller network of stores,” hinting at potential further store closures. No other information regarding reductions was immediately provided.

“We are focused on building shareholder value over the long term,” Cohen stated in the call’s brief opening remarks. “We’re not here to make promises or exaggerate things; we’re here to work.

GameStop’s annual shareholder meeting was initially scheduled for Thursday but was postponed due to a technical glitch that prevented many enthusiastic investors from accessing the livestream. A representative for Computershare, the firm hosting the webcast, attributed the issue to “unprecedented demand.”

GameStop (NYSE:GME), which was at the center of the meme stock frenzy, saw a revival this month when Keith Gill, also known as “Roaring Kitty,” returned to the scene for the first time in three years.

All eyes have been on GameStop’s potential comeback. Roaring Kitty returned to YouTube earlier this month to inform his massive following that he still believes GameStop’s management team can turn the troubled firm around after a poor financial report.

GameStop (NYSE:GME) is still facing challenges due to the transition to online gaming and the decline of in-store video game purchases, but investors are hopeful that Cohen will ultimately rebuild the company.

GameStop recently completed an at-the-market equity offering, selling the maximum number of 75 million shares to capitalize on a revived meme rally fueled by the return of Roaring Kitty.

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