In a recent development, online pet products retailer Chewy experienced significant fluctuations in its shares after meme stock trader Keith Gill, also known as ”Roaring Kitty,” disclosed a substantial stake in the company.
As per a Securities and Exchange filing on Monday, Gill revealed that he had acquired approximately 9 million Chewy shares (CHWY), representing a 6.6% ownership interest in the company.
Following this announcement, Chewy shares experienced a 6.6% decline on Monday, despite earlier surging by as much as 10% during the trading session.
The surge in Chewy shares began last Thursday after Gill, known for his involvement in the GameStop trading frenzy three years ago, shared a photo of a cartoon dog on his X account. The resemblance of the cartoon’s blue background to Chewy’s logo sparked a rally in the company’s shares, which climbed by over 34% before closing slightly lower.
Meme stocks like Chewy often witness drastic fluctuations driven by social media sentiment rather than fundamental factors, with influential traders like Gill playing a significant role in their movements.
It is noteworthy that Ryan Cohen, the founder of Chewy, currently serves as the CEO of GameStop, the video game retailer championed by Gill.
Gill recently rekindled the meme stock frenzy in May by resuming social media activity and sharing screenshots of his E*Trade account, showcasing his substantial GameStop holdings. CNN has not independently verified these screenshots.
In a filing on Monday, Gill responded to a question by affirming that he is not a cat, a possible reference to his previous Congressional testimony regarding the meme stock craze. This statement alludes to a viral incident during a virtual court proceeding where a lawyer appeared with a cat filter on-screen.
Overall, Keith Gill’s involvement in Chewy and GameStop has once again brought attention to the volatile nature of meme stocks influenced by social media and individual traders’ actions.
