GameStop shareholder meeting runs into technical issues, but stock continues to rally

By James Rogers

Meeting postponed until Monday amid technical issues

GameStop Corp.'s annual shareholder meeting ran into technical issues Thursday, forcing the videogame retailer and original meme stock to adjourn the event.

MarketWatch was also unable to access the event, which was hosted by Computershare. When MarketWatch eventually accessed the site, a message said that the event had ended. A message on the site also said: "We are experiencing technical issues. Please be patient whilst we resolve." A replay consisting of almost 15 minutes of background music was on the site.

"Earlier today, unprecedented demand from shareholders wanting access to GameStop's Annual General Meeting led to a technical issue that prevented some investors from getting through, and the meeting was adjourned," a spokesperson for Computershare told MarketWatch. "We're really sorry that this happened and are working with our supplier to ensure that it does not happen again."

The meeting will be reconvened at 12:30 p.m. Eastern on Monday, June 17, GameStop said in a statement late Thursday.

The issues prompted speculation on social media over demand crashing servers or even distributed denial-of-service (DDoS) attacks on the event.

GameStop did not immediately return a request for comment.

Nonetheless, the company's shares (GME) continued their rally Thursday, ending the session up 14.4%.

The meeting had attracted attention amid the roller-coaster performance of GameStop shares following the return of influential trader Keith Gill, also known as "Roaring Kitty," on social media. Additionally, GameStop CEO Ryan Cohen has kept a low profile amid the recent meme-stock rally, adding to interest in the shareholder meeting.

Related: GameStop shares slide as trading surges in options contracts associated with Roaring Kitty

Derek Horstmeyer, professor of finance for the Costello College of Business at George Mason University, told MarketWatch that the adjourned meeting is unlikely to dampen the enthusiasm of GameStop's biggest fans.

"Obviously, a significant percentage of this is not based on fundamentals, it's based on faith," he said. "If you kept the faith, you probably still have the faith that this thing is going to the moon - it's hard to see this one thing [today] derailing that."

Horstmeyer told MarketWatch that, from his perspective, GameStop's fundamentals "are just not here," despite Gill's comments championing the company during his recent YouTube livestream.

GameStop shares ended Wednesday's session down 16.5% as trading surged in options contracts thought to be associated with Gill. This sparked speculation on X that Gill, who also uses the online handle "DeepF-ingValue," might be selling some of his sizable options position in GameStop.

The trader 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.

Last Friday, GameStop shares registered their worst day since 2021 as Gill hosted his first YouTube livestream in three years.

The trader's return to social media has been marked by a flood of posts on X, formerly known as Twitter, that have used a host of memes from movies and TV shows such as "Star Wars," "Braveheart," "E.T. the Extra-Terrestrial," "Seinfeld" and "Peaky Blinders."

Related: GameStop says it raised $2.14 billion in share sale. Roaring Kitty memes continue.

A post Wednesday featured a clip from Quentin Tarantino's 2009 film "Inglourious Basterds" that depicted character Lt. Aldo Raine, portrayed by Brad Pitt, saying "I think this might just be my masterpiece." A clip from a CNBC news report on Friday's Roaring Kitty livestream is then shown.

Gill's latest post Thursday was a clip from "Dune: Part Two".

Earlier this week, GameStop said that it raised around $2.14 billion in a share sale. In a statement, the company said that it intends to use the proceeds for "general corporate purposes, which may include acquisitions and investments."

GameStop's shares are up 66.1% in 2024, outpacing the S&P 500 index's SPX gain of 13.9%.

Joseph Adinolfi and Barbara Kollmeyer contributed.

-James Rogers

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06-13-24 1749ET

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