GME shares fell to session lows after its annual meeting failed to provide any clarity on the company’s strategy

GameStop Shares dropped to a session low on Friday after the company’s highly anticipated annual meeting failed to offer any concrete updates on the video game retailer’s future plans.

Shares of memes fell about 12%, as the company’s rescheduled shareholder event lacked detailed commentary on its strategy. No shareholders raised questions during the meeting, which lasted about 30 minutes. Shares are down as much as 17% at $23.79.

In his brief opening remarks, CEO Ryan Cohen reiterated the company’s plans to focus on cutting costs and boosting profits and intimated that more store closures could be on the horizon.

“Non-profit revenue and future cash flow prospects are invaluable to our shareholders. This means a smaller network of stores with a higher variety of goods that fits our trade model,” said Cohen.

Cohen did not provide more specifics about the company’s future growth strategy. He talked about the importance of having a “strong balance sheet” and called it a “strategic advantage” – especially in times of economic uncertainty. As of May 4, GameStop had approximately $1 billion in cash and cash equivalents on its balance sheet.

“While the future is always uncertain, the monetary and fiscal policy of the last decade in the US and globally is a historical anomaly. Exiting the lowest interest rate environment may have an unexpected reverberating effect on the economy, as seen with inflation. The highest 40 year in 2022,” said Cohen.

“At current interest rates, investments made in the current economic climate should have a higher return threshold,” he said. “As my father always said, actions speak louder than words. We focus on building shareholder value in the long term. We are not here to make promises or hype, we are here to work.”

The event was interrupted by computer problems and was delayed on Thursday due to a server crash due to overwhelming interest in the stream.

GameStop is back in the spotlight as Reddit leader Roaring Kitty, whose legal name is Keith Gill, disrupts other trades. Gill gained notoriety in the online trading world in 2021 for declaring a large position in GameStop, in common stocks and risky options. Since returning to the scene, his position has topped 9 million shares in GameStop after exiting a large call option position before expiration.

The stock has gained seven of the past eight weeks after more than doubling in May. Year to date, up 45%.

GameStop is still struggling with the transition to online gaming and away from buying brick-and-mortar video games, with investor banking Cohen finally reinventing the company.

The retailer recently raised more than $2 billion in equity sales on the market as video game companies took advantage of the revived meme rally. GameStop said it plans to use the money for general corporate purposes, which could include acquisitions and investments.