Shares of GameStop (NYSE:GME) were down Monday after the company’s highly anticipated annual shareholder meeting failed to provide investors with concrete future plans.
GameStop (NYSE:GME) stock fell more than 12% following Monday’s meeting, which gave no detailed information regarding the company’s strategy.
During the an annual shareholder meeting, GameStop CEO Ryan Cohen stated that the struggling video game store will focus on cost reduction and long-term profitability.
Cohen said that this would include a “smaller network of stores,” implying that further store closures may be in the works. No other information on reductions was immediately supplied.
“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 originally scheduled for Thursday, but it 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, cited “unprecedented demand.”
GameStop (NYSE:GME), which was at the centre of the meme stock frenzy, witnessed a rebirth this month when Keith Gill, also known as “Roaring Kitty,” returned to the site 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 suffering with the transition to internet gaming and away from in-store video game purchases, but investors are hopeful Cohen will finally rebuild the company.
GameStop just completed an at-the-market equity offering, selling the maximum number of 75 million shares to raise proceeds of $2.14 billion to take advantage of a revived meme rally sparked by the return Roaring Kitty.
Featured Image – By Mike Mozart from Funny YouTube, USA – GameStop, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=89854717
Author Kristen Moran 
