The stock market recently witnessed a surge in Chewy shares after meme stock trader “Roaring Kitty,” also known as Keith Gill, disclosed his purchase of over 9 million shares, representing a 6.6% stake in the pet food e-commerce company. This significant investment catapulted him to the position of the third-largest shareholder in Chewy, with his stake amounting to more than $245 million based on Friday’s closing price. This move sent Chewy’s stock up by more than 8% in morning trading, reflecting the impact of Roaring Kitty’s market influence.
Chewy shares experienced a rollercoaster ride last week following Gill’s social media post featuring a cartoon dog resembling Chewy’s logo. The stock initially surged by as much as 34% on Thursday but eventually closed slightly lower. The stock’s volatility was further fueled by Gill’s history of championing GameStop and his involvement in driving trading activities in the video game company. However, the connection between GameStop and Chewy goes beyond Roaring Kitty’s interests.
GameStop, a familiar name in the meme stock saga, shares a significant bond with Chewy. GameStop’s CEO, Ryan Cohen, was the founder and former CEO of Chewy, playing a pivotal role in PetSmart’s acquisition of Chewy in 2017 and its subsequent IPO in 2019. Cohen’s transition to the GameStop board of directors in 2021, along with other Chewy executives, helped fuel the initial GameStop rally. In 2023, Cohen took over as GameStop’s CEO, leading a successful turnaround for the brick-and-mortar video game retailer.
Keith Gill, a former marketer for Massachusetts Mutual Life Insurance, gained prominence for his role in rallying retail investors to purchase GameStop shares and call options in 2021, triggering a squeeze on short-selling hedge funds. Gill’s recent investment in Chewy raises questions about his financial strategy, particularly regarding the potential sale of his GameStop holdings to fund the Chewy stake. His insights on GameStop’s reinvention and Cohen’s leadership highlight his belief in the company’s transformation and pivot to e-commerce.
Roaring Kitty’s venture into Chewy signifies his evolving influence in the stock market, transitioning from GameStop to a new investment landscape. As his investment decisions continue to shape market trends and capture investor attention, the connection between GameStop, Chewy, and Roaring Kitty underscores the dynamic nature of stock trading and the impact of influential traders in driving market movements.