GameStop's annual meeting fails to provide details on strategy, causing stock to drop over 12% and hit session lows.

• GameStop's shareholder event concluded without revealing any information about the company's strategies, resulting in a 12% decline in the meme stock's value.
• No questions were asked by shareholders during the 30-minute meeting.
• Ryan Cohen, CEO, announced the company's plans to reduce expenses and increase profits, hinting at possible store closures.

The company's annual meeting did not provide any updates on its future plans, causing its shares to drop to session lows on Monday.

The meme stock's share price dropped by 17% to $23.79, despite the company's rescheduled shareholder event lasting only 30 minutes and not providing any detailed information about its strategies. No shareholders were able to ask questions during the meeting.

Ryan Cohen, CEO, announced the company's plans to reduce expenses and increase profits, hinting at possible store closures.

"Shareholders value revenues that are accompanied by profits and future cash flows. As a result, we will have a smaller network of stores with a wider selection of high-value items that fit into our trade-in model," Cohen stated.

GameStop has a strong balance sheet with about $1 billion in cash and cash equivalents, which Cohen believes is a strategic advantage, especially during economic uncertainty. However, he did not provide more specifics on the company's future growth strategies.

According to Cohen, the last decade's monetary and fiscal policies, both within the U.S. and globally, are historic anomalies. As the economy exits an ultra-low interest rate environment, it is likely to have unforeseen reverberating effects, as seen with inflation hitting 40-year highs in 2022.

"In today's economic climate, an investment made under the current interest rates must have a higher return threshold," he stated. "My father used to say that actions speak louder than words. Our focus is on building shareholder value over the long term, and we are not here to make empty promises or hype things up. Instead, we are committed to working hard."

The stream's overwhelming interest caused servers to crash, resulting in a disruption and postponement of the event on Thursday.

Reddit's Roaring Kitty, whose real name is Keith Gill, once again brought GameStop into the spotlight with another trading frenzy. Gill gained fame in 2021 for promoting his large positions in GameStop, both in common shares and risky options. Since his return, his GameStop position has grown to 9 million shares after exiting a massive call option position before expiration.

The stock has experienced a 45% increase year to date, with a seven-week gain that more than doubled in May.

Despite ongoing challenges with shifting from physical video game sales to online gaming, investors remain hopeful that Cohen will ultimately revitalize GameStop.

The video game company, GameStop, recently raised more than $2 billion in an at-the-market equity sale, taking advantage of the revived meme rally. The retailer intends to use the money for general corporate purposes, including acquisitions and investments.