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GameStop stock plunged 12% on Monday afternoon following the company’s annual shareholder meeting, which was all work and no play.
In to-the-point remarks delivered at the opening of the meeting, GameStop CEO Ryan Cohen said the company is 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 told investors.
Shares of the video game retailer traded at $25.21 on Monday afternoon, bringing the company market capitalization to $8.85 billion. Year-to-date, the company’s shares are up roughly 51%. The meeting was originally supposed to take place on Thursday, but was postponed after overwhelming interest caused servers to crash.
Cohen took the opportunity to lay out a broad plan for the company that includes cutting costs and putting additional emphasis on profitability, something the company has continued to struggle with in recent quarters.
“Revenues without profits, and prospects of future cash flows are of no value to shareholders,” he said. “This means a smaller network of stores with an expanded assortment of higher value items that fit into our trade-in model.”
GameStop’s net sales plunged 28% to $881.8 million in the 13 weeks ended May 4, from $1.24 billion in the same period last year, the company reported earlier this month. It had a net loss of 32.3 million for the quarter, narrower than its $50.5 million in losses a year ago. GameStop had prepared investors for falling sales in a regulatory filing last month.
The return last month of retail investor and meme stock booster Keith Gill, better known by his social media persona “Roaring Kitty,” has taken the company’s shares on a wild ride in the weeks since.
GameStop stock soared as much as 75% after his first social media post in three years, sunk 40% after his first YouTube livestream since 2021 earlier this month, and have traded pretty much anywhere in between depending on the day.
On Friday, Gill posted a screenshot of his portfolio showing that he unloaded all 120,000 of his GameStop call options — and added 4 million new shares of the video game retailer, bringing his total holdings to more than 9 million shares.