Shares of online pet-goods retailer Chewy experienced significant volatility following meme stock trader Keith Gill's disclosure of a 6.6% stake in the company, valued at over $245 million. The filing revealed that Gill, also known as "Roaring Kitty," purchased just over 9 million shares, making him the third-largest Chewy shareholder. The stock initially rallied more than 9% but later fell 6% as traders reacted to the news. This development comes after Gill's involvement in the GameStop stock saga of 2021, where he gained fame and a large following. Gill's return to social media in May, endorsing GameStop CEO Ryan Cohen and his team, sparked a buying frenzy in GameStop by Reddit users and retail investors, leading to weeks of stock swings and a 28% year-to-date increase. The surge following Gill's post underscored GameStop's loyal following. Notably, Cohen was the founder and first CEO of Chewy, and the connection between GameStop and Chewy is significant. GameStop shares fell more than 5% following the news of Gill's stake in Chewy, raising questions about whether he sold his GameStop bet to fund the purchase of Chewy. Chewy shares have risen over 9% this year, and the company's loyal following was highlighted by the surge in its stock after Gill's social media activity. Additionally, the SEC filing that revealed Gill's stake in Chewy included a section referencing a previous congressional hearing about the GameStop trading mania, where Gill stated, "I am not a cat." This line has garnered attention and added to the intrigue surrounding Gill's involvement in these stocks. Overall, the news of Gill's stake in Chewy has had a significant impact on both Chewy and GameStop shares, reflecting the ongoing influence of meme stock traders in the market.
