GameStop (GME) shares plunged Monday as the struggling video game retailer’s delayed annual shareholder meeting ended with apparently few insights into the company’s future for investors to consider.
Reports said Chief Executive Officer (CEO) Ryan Cohen at the meeting told shareholders the company plans to continue cutting costs and wants to move to running a smaller number of stores selling higher-priced items. He added that GameStop was focused on building shareholder value over the long term. General Counsel Mark Robinson explained that the company has raised $3 billion from stock sales recently, but provided no other details.
Meeting Delayed Last Week by Streaming Crash
The meeting had been delayed from Thursday, when demand for a third-party live stream of the event was so overwhelming it crashed the system.
Shares of GameStop have been on a roller-coaster ride in recent weeks after one of the key drivers of the 2021 meme-stock craze, Keith Gill, known online as “Roaring Kitty,” resurfaced on social media after several years to again show his support for the stock.
In May, the Roaring Kitty effect sent shares to their highest price level since 2021, then, after fading, they had another spike earlier this month when Gill announced he was going to do a live YouTube event. Shares fell 12.1% Monday to $25.23, but remain more than 43% higher year-to-date.
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