GameStop drops more than 12%, hits session lows after annual meeting fails to offer details on firm's strategy

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GameStop shares dropped to session lows Monday after its highly anticipated annual meeting failed to offer any concrete updates on the video game retailer's future plans.

The meme stock was down more than 12%, as the company's rescheduled shareholder event wrapped up with no detailed remarks about the company's strategies. No shareholders got to ask their questions during the meeting which lasted about 30 minutes. Shares were down as much as 17% at $23.79.

In brief introductory 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.

«Revenues without profits and prospects of future cash flows are of no value to shareholders. This means a smaller network of stores with an expanded assortment of higher value items that fit into our trade-in model,» said Cohen.

Cohen didn't provide more specifics on the company's future growth strategies. He spoke 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 about $1 billion in cash and cash equivalents on its balance sheet.

«While the future is always uncertain, the last decade's monetary and fiscal policies both within the US and globally are historic anomalies. Exiting from an ultra-low interest rate environment is likely to have unforeseen reverberating effects across the economy, as seen with inflation hitting 40 year highs in 2022,» said Cohen.

«Under the current interest rates, an investment made in today's economic climate must bear a higher return threshold,» he added. «As my father always said, actions speak louder than words, we are