GameStop Soars While Chewy Slides After ‘Roaring Kitty’ Exits Stake
In a twist of market fortunes, GameStop Corp. (GME) shares surged in pre-market trading on Tuesday, while Chewy Inc. (CHWY) shares dipped. This contrasting movement can be attributed to the recent decision by Keith Gill, popularly known as ‘Roaring Kitty,’ to sell his entire 6.6% stake in Chewy, according to a Tuesday filing. This development carries significant weight, as Gill was a key figure in the 2021 meme stock movement that propelled GameStop to unprecedented heights.
Gill’s departure from Chewy is particularly intriguing given its connection to Ryan Cohen, GameStop’s CEO and Chewy’s founder. During the 2021 meme stock frenzy, Gill’s publicly shared analysis and engaging YouTube videos captivated retail investors, drawing their attention to GameStop and leading to significant price volatility that even caught the eye of Congress. Cohen, who founded Chewy and sold it to PetSmart for $3.35 billion in 2017, initially invested in GameStop in 2020 through his firm RC Ventures. He later became GameStop’s chairman in 2021 and was recently appointed CEO, forging a strong connection between the two companies.
The divergent price action of GameStop and Chewy offers a compelling illustration of Gill’s influence on the market. GameStop, currently trading at $23.68 in pre-market, up 4.41%, is experiencing a surge in value, possibly fueled by optimism surrounding Cohen’s leadership and the company’s restructuring efforts. Conversely, Chewy, trading at $26.15 in pre-market, down 2.02%, is experiencing a decline, likely attributed to the removal of Gill’s significant investment.
Gill’s recent activity on social media provides a glimpse into his evolving investment strategy. After a three-year hiatus, he re-emerged on X in June, posting a dog image that hinted at his interest in Chewy, coinciding with his disclosure of the 6.6% stake in the pet retailer. However, on September 6, he posted a meme featuring the same dog being discarded, similar to a scene from “Toy Story,” signaling his departure from Chewy. Prior to his exit, Gill’s last known position update on Reddit revealed holdings of approximately nine million GameStop shares as of June, making Chewy his only other publicly disclosed investment outside of GameStop.
The divergent price action of GameStop and Chewy serves as a reminder of the unpredictable nature of the market and the significant influence individuals can have on stock performance. While Gill’s exit from Chewy may have dampened sentiment for the pet retailer, GameStop, bolstered by Cohen’s leadership and the company’s ongoing transformation, appears to be on an upward trajectory. It remains to be seen whether the market will continue to reflect these contrasting movements in the coming days.
Key Takeaways:
* Keith Gill, known as ‘Roaring Kitty,’ has sold his entire stake in Chewy, leading to a decline in the company’s stock.
* Gill’s departure comes after his significant role in the 2021 meme stock movement that boosted GameStop’s price.
* GameStop is currently experiencing a surge in pre-market trading, potentially due to investor confidence in CEO Ryan Cohen’s leadership.
* Gill’s recent social media activity offers insights into his evolving investment strategies.
* The market is constantly evolving, and individual investors can have a significant impact on stock performance.
