Chewy, the popular pet food e-commerce retailer, experienced a surge in its stock price after it was revealed that meme stock trader “Roaring Kitty,” also known as Keith Gill, had acquired just over 9 million shares of the company, representing a 6.6% stake. This investment positioned him as the third-largest shareholder of Chewy, with his stake valued at more than $245 million based on Friday’s closing price.
Following the disclosure of Roaring Kitty’s investment, Chewy’s stock soared by more than 8% in morning trading. This positive momentum comes after a volatile week for Chewy shares, which saw a significant increase after Gill posted a picture on social media resembling the company’s logo. However, the stock closed slightly lower after reaching a peak of a 34% gain on Thursday.
The relationship between Chewy and GameStop is notable, as GameStop CEO Ryan Cohen previously served as the founder and CEO of Chewy. Cohen played a key role in PetSmart’s acquisition of Chewy in 2017 and its subsequent IPO in 2019. He later joined the GameStop board in January 2021, contributing to the initial GameStop stock rally. Cohen’s leadership at GameStop has resulted in a successful turnaround for the brick-and-mortar video game retailer.
Keith Gill gained attention for his role in promoting retail investor participation in GameStop stock and options trading in early 2021, leading to a significant squeeze on short-selling hedge funds. Gill’s recent investment in Chewy raises questions about the potential sale of his GameStop holdings to fund this new venture. Despite GameStop shares dipping following the news, Gill remains optimistic about the company’s future under Cohen’s leadership.
During a recent YouTube livestream, Gill expressed confidence in GameStop’s ongoing reinvention under Cohen’s guidance. He highlighted GameStop’s transition to e-commerce as a pivotal development for the company’s growth. As Gill continues to navigate the stock market landscape, his strategic investments in companies like Chewy and GameStop demonstrate his influence in the meme stock trading community.
The entry of “Roaring Kitty” into Chewy’s shareholder base has sparked investor interest and led to a surge in the company’s stock value. This move, along with Gill’s involvement in GameStop and other retail investor-driven activities, underscores the evolving dynamics of the stock market. As Chewy and GameStop continue to navigate their respective paths, the impact of key stakeholders like Roaring Kitty remains a significant factor in shaping their future trajectories.