GameStop's stock falls as annual shareholder meeting fails to reignite meme-stock rally

By Ciara Linnane

Roaring Kitty weighed in on the event with fresh cryptic tweets

GameStop Corp.'s stock was flat on Tuesday, as investors continued to digest the company's short annual meeting a day earlier that wrapped up in about 20 minutes.

There was little fresh news from the event, which had been postponed from last week when shareholders attempted to attend the webcast in such large numbers that it crashed.

Chief Executive Ryan Cohen said he is focused on creating a "smaller network of stores" and noted that the company's strong balance sheet provides a strategic advantage.

"We're not here to make promises. ... We're here to work," Cohen said.

GameStop (GME) raised $2.14 billion in a stock sale last week, giving it a war chest of about $4 billion.

The meeting attracted attention amid the roller-coaster performance of GameStop shares following the return to social media of influential trader Keith Gill, also known as Roaring Kitty.

Gill was an influential figure in the 2021 meme-stock frenzy that sent shares of GameStop and AMC Entertainment Holdings Inc. (AMC) skyrocketing. Gill's return to social media last month sparked a new meme-stock rally that prompted a rise in shares of GameStop and AMC, as well as other stocks.

On June 7, GameStop shares registered their worst day since 2021 as Gill hosted his first YouTube livestream in three years. The trader again outlined his vision for the company as one that could prosper under Cohen's influence.

On Monday, Gill sent two more tweets to the platform now known as X. In keeping with his typical approach, the two were offered without comment or explanation and were cryptic.

The first was an image of tennis player John McEnroe, wearing his signature headband. Gill usually wears a headband on his livestreams.

That was followed by an image of Bruno Madrigal, a character from Walt Disney Co.'s 2021 animated film, "Encanto."

Madrigal is Mirabel Madrigal's uncle, but he is ostracized by his family and community because he sees the future-especially bleak events to come.

Other meme stocks were also under pressure. AMC Entertainment Holdings Inc. (AMC) was down 0.1%, while headset maker Koss Corp. (KOSS) was down 3% and cybersecurity company BlackBerry Ltd. (BB) was down 0.2%. Plant-based meat maker Beyond Meat Inc. (BYND) was down 1.2%.

GameStop's stock is up about 44% in the year to date, while the S&P 500 SPX has gained 14.8%.

-Ciara Linnane

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06-18-24 1045ET

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