The stock of Chewy (CHWY) experienced significant volatility following the disclosure of popular investor Keith Gill's 6.6% stake in the company. Gill, also known as "Roaring Kitty," owned 9.1 million shares of Chewy before a post on social media platform X sent the stock soaring. Despite the initial surge, Chewy's shares were down about 5% in early trading on Monday. Gill's interest in Chewy remains largely unknown, although he has previously expressed admiration for GameStop CEO Ryan Cohen, who is also the founder of Chewy. Notably, Cohen is no longer on the executive board at Chewy. Gill's filing with the SEC included a peculiar detail where he checked the box labeled "I am not a cat." This disclosure comes amidst a series of activities from Gill, who has recently reemerged online and disclosed a large stake in GameStop. The filing revealed that Gill's stake in Chewy is valued at more than $245 million based on Friday's close. Despite the initial excitement surrounding Gill's disclosure, Chewy's stock experienced a significant downturn, highlighting the unpredictability of short-term stock movements. Gill is known for seeking investments he believes are undervalued, and some analysts agree that Chewy has significant potential given the large market of pet owners. However, Chewy's recent growth has been lackluster, and its future performance will be crucial for the investment to pan out well. The connection between GameStop and Chewy is noteworthy, as GameStop CEO Ryan Cohen was instrumental in PetSmart's takeover of Chewy. Gill's disclosure of his stake in Chewy came shortly after he posted a picture of a dog on social media, which led to a brief surge in the stock. Overall, the news of Gill's significant stake in Chewy has generated both excitement and uncertainty in the stock market, reflecting the complex dynamics at play in the investment landscape.
