GameStop (NYSE:GME) shares tumbled more than 12% following the annual shareholder meeting on Monday, where CEO Ryan Cohen emphasized the company’s strategy to cut costs and achieve long-term profitability.
Cohen outlined plans to operate with a “smaller network of stores,” indicating potential future store closures. However, specific details on the reductions were not disclosed. “We are focused on building shareholder value over the long term,” Cohen remarked during his brief opening statement. “We are not here to make promises or hype things up, we are here to work.”
Originally scheduled for Thursday, the annual shareholder meeting was postponed due to a technical glitch that prevented many investors from accessing the livestream. Computershare, the company managing the webcast, attributed the issue to “unprecedented demand.”
The delay only heightened anticipation regarding the leadership’s announcements. Numerous individuals took to social media over the weekend and early Monday to discuss the forthcoming meeting, further increasing the buzz.
GameStop, a central figure in the meme stock phenomenon, experienced a revival last month when Keith Gill, known as “Roaring Kitty,” reappeared online after a three-year hiatus. Gill’s return to YouTube earlier this month reassured his vast audience that he still believes in GameStop’s management team’s ability to turn the company around following a disappointing earnings report.
Despite narrowing its losses in the first quarter, GameStop saw a decline in revenue due to weakened sales in hardware and accessories, software, and collectibles. Additionally, GameStop filed paperwork with securities regulators last week to sell up to 75 million shares of stock, aiming to raise nearly $2.14 billion in proceeds.
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