The shareholder meeting did not do much to address the meme stock craze around GameStop, which sent shares rocketing in mid-May and early June.
Topline
GameStop CEO Ryan Cohen said during the video game retailer’s annual shareholder meeting it is not here to “hype things up” as meme stock traders continue to invest in the company, which experienced a more than 11% drop after the meeting’s scheduled start time.Key Facts
GameStop shares traded down 11.9% at $25.27 as of 3 p.m., marking one of the lowest prices the company’s stock has traded at this month.
The slide in shares came after Cohen largely rehashed the company’s priority of cutting costs and strengthening its its balance sheet, though it’s not unusual for GameStop’s share price to move wildly in response to minor news updates—or even no news at all—given its meme stock identity and large base of retail traders.
GameStop is holding on to a large cash pile despite declining operations and so far seems intent on utilizing it conservatively as opposed to taking larger risks with the funds.
