GME shares fell to session lows after the annual meeting failed to provide details about the company's strategy

GameStop Shares fell to session lows on Monday after the company's highly anticipated annual meeting failed to provide any concrete updates on the video game retailer's future plans.

Meme stock fell nearly 12%, as its rescheduled shareholder event concluded without any detailed remarks about its strategies. None of the shareholders were able to ask their questions during the meeting, which lasted about 30 minutes. Shares fell 17% to $23.79.

In brief introductory remarks, CEO Ryan Cohen reiterated the company's plans to focus on cutting costs and increasing profits and hinted that more store closings may be on the horizon.

“Revenues without earnings and the potential for future cash flows are worthless to shareholders. This means a smaller network of stores with an expanded assortment of higher value items that fit our commerce model,” Cohen said.

Cohen did not provide further details about the company's future growth strategies. He spoke of the importance of having a “strong balance sheet” and described it as a “strategic advantage” – especially in times of economic uncertainty. As of May 4, GameStop had about $1 billion in cash and cash equivalents on its balance sheet.

“Although the future is always uncertain, the monetary and fiscal policies pursued over the past decade within the United States and globally represent historical anomalies. An exit from an ultra-low interest rate environment will likely have unforeseen adverse effects throughout “The economy, as we saw with inflation reaching unexpected levels.” “40-year highs in 2022,” Cohen said.

“With current interest rates, investments made in the current economic climate must bear a higher return threshold,” he added. “As my father always said, actions speak louder than words. We are focused on building long-term shareholder value. We are not here to make promises or hype things up, we are here to work.”

The event was disrupted by computer problems and was postponed on Thursday as servers crashed due to overwhelming interest in the broadcast.

GameStop was back in the spotlight when Reddit mob boss Roaring Kitty, whose legal name is Keith Gill, sparked another trading frenzy. Gill gained notoriety in the online trading world in 2021 for touting his large positions in GameStop, both in common stock and risky options. Since his return to the scene, his position has surpassed 9 million GameStop shares after exiting a giant call option position before expiration.

The stock has risen seven of the past eight weeks after doubling in May. Year to date, it's up about 45%.

GameStop is still struggling to pivot to online gaming and move away from traditional video game purchasing, with investors counting on Cohen to finally reinvent the company.

The retailer recently raised more than $2 billion selling stock on the market as the video game company benefited from the rise of the revived meme. GameStop said it intends to use the funds for general corporate purposes, which may include acquisitions and investments.