According to Zhitong Finance, GameStop (GME.US) is planning to hold its annual shareholders' meeting on June 13th local time. Prior to the meeting, the company's CEO Ryan Cohen disclosed his position in the company. Cohen's company, RC Ventures, disclosed in a filing submitted to the U.S. Securities and Exchange Commission (SEC) on Wednesday that they hold 8.6% of GameStop's shares, which is lower than the previously announced 10.2%. Yesterday, GameStop completed an in-store sale of up to 75 million shares, raising a total of $2.137 billion. In fact, the in-store stock issuance reduced the ownership percentage of all registered shareholders of GameStop.
Items on the meeting agenda include voting to elect five directors, conducting an advisory, non-binding vote on executive compensation, voting on the appointment of Deloitte &amp; Touche as the company's independent registered public accounting firm for the audit committee, and handling any other matters that may be appropriately addressed before the annual meeting.
At last year's GameStop shareholders' meeting, Cohen's opening remarks caused a sensation. At that time, Cohen said, &#34;Actions speak louder than words. My duty is to ensure that GameStop's managers treat the company's funds as they would their own. In the American corporate world, executives, professional directors, and management teams are not aligned with shareholders. They are always recipients of stock grants. However, they rarely purchase company stock with their own savings. There is a big difference between receiving risk-free rewards for attending meetings and putting a large sum of their own money at risk.&#34;
<h2>GameStop's Weak Performance, Big Gains from Meme Craze</h2>
In pre-market trading on Wednesday, GameStop's stock price initially fell nearly 6%, then rebounded, with a gain of 1.51% as of the time of writing, reaching $30.95. The company had surged 22.80% on Tuesday, reversing a 12% decline on Monday. The company's market value still exceeds $10 billion, higher than consumer goods companies like Hasbro (HAS.US).
On Wednesday, Citron Research published an article on X: &#34;Citron will no longer short GameStop. This is not because we believe the company's fundamentals will improve, but because they have $5 billion in the bank and they have enough time to appease their followers. Although Wedbush set a target of $11 today, we respect the market's irrationality...&#34;
Last Friday, GameStop's stock price experienced significant volatility, with pre-market trading at one point surging over 30%. However, with the announcement of a decline in quarterly sales, the stock price plummeted by nearly 40% at the close. During this period, the influential stock influencer Keith Gill, also known as &#34;Roaring Kitty,&#34; returned to YouTube in hopes of sparking new interest in this struggling retailer. However, despite Gill's return attracting a lot of attention, the continued decline in the company's stock price indicates that his influence has not translated into renewed investor enthusiasm for GameStop
As a key driver behind the astonishing rebound of GameStop's stock price in 2021, he humorously discussed GameStop in a live broadcast, interspersed with several disclaimers. As of Monday, the video has surpassed 2.4 million views on YouTube.
According to information shared by Gill on social media, he increased his holdings of GameStop stock by an average price of $21.274 per share, purchasing 5 million shares, and bought 120,000 call options expiring on June 21 with a strike price of $20 per contract at a price of $5.6754 per contract. While Reuters was unable to independently verify the number and value of shares he holds, data from the London Stock Exchange shows that the trading price of these options contracts has risen to $6.40 per contract.
Financial reports show that this electronic game retailer's net sales in the first quarter were $881.8 million, a 29% decrease from $1.237 billion in the same period last year, exceeding analysts' expectations. The company incurred a loss of $32.3 million for the quarter, a decrease from $50.5 million in the same period last year, but with an adjusted loss per share of $0.12, still falling short of market expectations.
GameStop recently sold 75 million Class A shares, raising a total of $2.137 billion, which will be used for working capital and general corporate purposes. Previously, the company raised approximately $933.4 million by selling 45 million shares.
Despite GameStop's stock price nearly doubling within two days after May 14 when the account related to Gill returned to X.com (formerly Twitter), it has since retraced most of the gains. Nevertheless, as of 2024, GameStop's stock price has risen by approximately 37%.
For years, GameStop has been grappling with losses, mainly due to the trend of consumers shifting towards online shopping. The latest quarterly performance shows a decline in sales across all business segments, including hardware and accessories, software, and collectibles, reflecting the company's greater-than-expected challenges in a fiercely competitive and ever-changing industry, making it difficult to maintain market share and revenue growth

GameStop CEO Ryan Cohen revealed that his stake has decreased to 8.6%, lower than the previous 10.2%. The company plans to hold its annual shareholders' meeting, with agenda items including director elections and the appointment of the audit committee. After the on-market sale of GameStop shares, shareholders' ownership percentage has decreased. The stock price has experienced short-term fluctuations under the influence of the Meme frenzy, but the market value still exceeds $10 billion

1. The CEO of GameStop, Ryan Cohen, disclosed that his company, RC Ventures, holds an 8.6% stake in GameStop, lower than the previously announced 10.2%.2. GameStop completed an offering of up to 75 million shares, raising $2.137 billion. This offering reduced the ownership percentage of existing shareholders.3. The agenda for the annual shareholder meeting includes voting for five directors, advisory voting on executive compensation, voting on Deloitte & Touche as the independent auditor, and addressing any other appropriate matters.4. Ryan Cohen emphasized the importance of executives and directors aligning their interests with shareholders by investing their own savings in the company's stock.5. GameStop's stock price initially dropped but later rebounded, with a 1.51% increase, following a surge of 22.80% the previous day.6. Citron Research announced that they are no longer shorting GameStop due to the company having $5 billion in the bank and enough time to appease its followers.7. Keith Gill, also known as "Roaring Kitty," returned to YouTube to generate renewed interest in the struggling retailer.

On the eve of the GameStop shareholders' meeting, the CEO disclosed a decrease in shareholding percentage