The recent surge in Chewy shares can be attributed to the actions of Roaring Kitty, also known as Keith Gill. This social media influencer has a history of influencing meme stocks such as GameStop by posting cryptic images and memes online. A seemingly innocuous picture of a cartoon dog on his X feed drove Chewy shares up by 34% momentarily before they fell back down later in the session.
There is a strong connection between Chewy and GameStop, as both companies have ties to Ryan Cohen. Cohen, the founder and former CEO of Chewy, played a significant role in the company’s IPO. He later joined the board of directors at GameStop, contributing to the initial rally of the stock. His leadership at GameStop since 2023 has resulted in a turnaround for the brick-and-mortar retailer.
The COVID-19 pandemic had a profound effect on pet retailers like Chewy and Petco. With more people staying at home, there was a surge in pet adoptions, leading to increased sales of pet-related products. However, as restrictions eased, adoption rates slowed down, affecting the demand for discretionary pet items with higher profit margins.
Keith Gill rose to fame after his successful campaign to encourage retail investors to buy GameStop shares and call options in 2021. This led to congressional hearings on brokers’ practices and the “gamification” of retail trading. Gill’s social media presence and influence have had a significant impact on meme stocks like Chewy.
Despite the recent volatility in Chewy shares, the company continues to be a player in the pet retail industry. As consumer behavior evolves and the market responds to influencers like Roaring Kitty, it remains to be seen how Chewy will navigate the changing landscape of retail trading. Investors and analysts alike will be watching closely to see how the saga of Chewy and meme stocks unfolds in the coming months.