Ryan Cohen, the CEO of Gamestop, said in a yearly meeting with shareholders on Monday that the video game store chain will focus on reducing expenses and aiming for long-term profits.
Gamestop has been struggling in recent years.
Cohen mentioned that this plan would include having a “smaller network of stores.” This hint suggests that Gamestop might close down even more stores in the future. However, no additional details about these reductions were given right away.
“We are focused on building shareholder value over the long term,” Cohen said at the beginning of the meeting. “We are not here to make promises or hype things up, we are here to work.”
After the meeting on Monday, Gamestop’s stock price fell by more than 12%.
Originally, the annual shareholder meeting was supposed to happen on Thursday. However, it was delayed because of a technical problem that prevented many eager investors from joining the online livestream. Computershare, the company in charge of the webcast, said the issue was due to “unprecedented demand.”
This delay seemed to make people even more excited about what Gamestop’s leadership had to say. Many people posted on social media over the weekend and on Monday morning about the upcoming meeting, adding to the hype.
Gamestop has been at the heart of the “meme stock” frenzy. Last month, the company saw a resurgence in interest after Keith Gill, known online as “Roaring Kitty,” came back to YouTube for the first time in three years.
Everyone is curious to see if Gamestop can make a comeback. Earlier this month, Roaring Kitty returned to YouTube to tell his many followers that he still believes Gamestop’s management team can turn the struggling company around, even after a disappointing earnings report.
But there’s still a long way to go. Although Gamestop managed to reduce its losses in the first quarter, its revenue decreased as sales of hardware, accessories, software, and collectibles weakened.
Last week, Gamestop also filed paperwork with regulators to sell up to 75 million shares of stock, which could raise nearly $2.14 billion.
The Associated Press contributed to this article.