GameStop (GME.US) plans to hold its annual shareholder meeting on June 13th local time. Prior to the meeting, the CEO of the company, Ryan Cohen, disclosed his position in the company. In a document submitted to the US Securities and Exchange Commission (SEC) on Wednesday by RC Ventures, Cohen's company, it was revealed that the company holds 8.6% of GameStop's shares, lower than the previously announced 10.2%. Yesterday, GameStop completed the sale of up to 75 million shares of stock on the market, raising a total of $2.137 billion. In fact, the sale of market shares reduced the proportion of registered shareholders' holdings in GameStop.

The items on the meeting agenda include voting for five directors, advisory voting on executive compensation, voting on Deloitte & Touche as the company's independent registered public accounting firm for the audit committee, and handling any other appropriate matters that may be dealt with before the annual meeting.

Cohen's opening remarks at last year's GameStop shareholder meeting caused a stir. At the time, Cohen said, "Actions speak louder than words. My responsibility is to make sure that GameStop's managers treat the company's funds as they would their own. In the US business community, executives, professional directors, and management teams are not aligned with shareholders. They are always the recipients of stock grants. However, they rarely buy company stock with their own savings. There is a big difference between getting risk-free rewards for attending meetings and putting large amounts of money at risk."

GameStop's performance is weak, and its sharp rise is due to the Meme craze.

In pre-market trading on Wednesday, GameStop's stock price briefly fell nearly 6%, then rebounded, rising 1.51% to $30.95 as of press time. Previously, the company had soared 22.80% on Tuesday, reversing Monday's 12% decline. The company's market cap still exceeds $10 billion, higher than the market cap of consumer goods companies like Hasbro (HAS.US).

On Wednesday, Citron Research published an article on Twitter: "Citron will no longer be short on GameStop. Not because we believe in fundamentals improving but rather the balance sheet has been repositioned to no longer give such a good risk/reward setup. Although we target 11$,we respect the market's irrationality..."

Last Friday, GameStop's stock price fluctuated sharply, with the pre-market trading price surging more than 30% at one point. However, with the announcement of the company's quarterly sales decline, the stock price plummeted sharply and closed down nearly 40%. During this period, Keith Gill, also known as "Roaring Kitty," a highly watched stock influencer, returned to YouTube in the hopes of reigniting the market's interest in the struggling retailer. However, even though Gill's return garnered a lot of attention, the continued decline in the company's stock price indicates that his influence did not seem to translate into renewed investor enthusiasm for GameStop.

According to the information shared by Gill on social media, he increased his holdings of Gamestop stock by 5 million shares at an average price of $21.274 per share and purchased 120,000 call options expiring on June 21 with a strike price of $20 for $5.6754 per contract. Although Reuters was unable to independently verify the number and value of the shares he holds, data from the London Stock Exchange shows that the trading price of these option contracts has risen to $6.40 per contract.

According to the financial report, 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, which exceeded analysts' expectations. The company posted a loss of $32.3 million for the quarter, a reduction from $50.5 million in the same period last year, but a loss per share of $0.12 adjusted for the market still failed to meet market expectations.

GameStop recently sold 75 million Class A shares, raising a total of $2.137 billion, with the proceeds to be used for operating capital and general corporate purposes. Prior to this, the company had raised approximately $933.4 million by selling 45 million shares of stock.

Although Gamestop's stock price nearly doubled within two days since May 14 when Keith Gill's account returned to X.com (formerly Twitter), it has since given back most of its gains. Nevertheless, the stock price of Gamestop has still risen by about 37% since 2024.

For years, Gamestop has been trying to cope with losses, mainly due to the trend of consumers turning to online shopping. The latest quarterly results show that sales in all business sectors, including hardware and accessories, software, and collectibles, have declined, reflecting that the company is facing bigger challenges than expected in a fiercely competitive and constantly changing industry, making it difficult to maintain market share and revenue growth.