GameStop annual shareholder meeting was a disappointment for investors: here's why

GameStop Corp (NYSE: GME) lost another 13% on Monday after its annual meeting concluded without a concrete update on the retailer’s future plans. 

GameStop hosted annual shareholder meeting on Monday

The video gaming merchandise company could not host its annual shareholders meeting last week as servers crashed due to a massive surge in interest as Invezz reported here.

$GME, therefore, held its yearly meeting today which did not offer any colour of what the management plans on doing to turn this ship around. 

Earlier in June, GameStop reported a 29% year-on-year hit to its net sales in the first quarter to $882 million versus analysts at $900 million at least. The meme stock did, however, narrow its quarterly loss to $50.5 million. 

GameStop stock is currently down close to 50% versus its year-to-date high. 

What $GME chief executive said during the annual event

On Monday, Ryan Cohen - the chief executive of GameStop indicated plans of cutting costs in pursuit of improving profits and signalled more store closures in the coming months. 

Cohen did not, however, detail specifics of the firm’s future growth strategies. A strong balance sheet, he added, is a strategic advantage for $GME that currently has about $1.0 billion in cash and equivalents. 

GameStop stock does not currently pay a dividend.

GameStop stock has been in focus over the past month

GameStop has recently raised over $2.0 billion via an at-the-market equity offering after Keith Gill (Roaring Kitty) returned to the social networks which resulted in a huge boost to the retail firm's stock price. CEO Cohen also said today:

We are focused on building shareholder value over the long term. We are not here to make promises or hype things up, we’re here to work.

$GME annual shareholder meeting comes shortly after analysts at Wedbush Securities downgraded the meme stock to "underperform" and lowered their price target to $11 which warns of a potential 55% downside from here.

Insider Daniel William Moore have recently sold a little under 8,000 shares of GameStop Corp as well. He still, however, owns more than 13,000 shares of the video gaming merchandise retailer at present.