In a surprising turn of events, meme stock trader Keith Gill, commonly known as “Roaring Kitty,” has made a significant investment in pet food e-commerce retailer Chewy. The Securities and Exchange Commission filing revealed that Gill purchased over 9 million shares of Chewy, amounting to a 6.6% stake in the company. This move has positioned him as the third-largest shareholder in Chewy, with his stake valued at over $245 million based on Friday’s closing price.
Following the news of Roaring Kitty’s investment, Chewy’s stock experienced a notable uptick in premarket trading, with shares rallying over 20% before the market opened. The filing also contained a quirky reference to Gill’s viral moment in a congressional hearing, where he declared, “I am not a cat,” alongside checking the appropriate box for that statement. This witty remark added an element of humor to the otherwise serious financial disclosure.
There is a significant connection between GameStop and Chewy, as highlighted by Keith Gill’s involvement in both companies. GameStop CEO Ryan Cohen, who was previously the founder and CEO of Chewy, played a crucial role in PetSmart’s acquisition of Chewy in 2017 and its subsequent IPO in 2019. This shared history between the two companies has led to synergies in their stock movements and investor interest.
Keith Gill’s rise to fame as a retail investor advocate began with his successful promotion of GameStop shares and call options in 2021, causing a short squeeze that impacted hedge funds. His latest move into Chewy further solidifies his position as a key player in the meme stock trading sphere. It remains to be seen how his investment in Chewy will affect the company’s future performance and strategic direction.
In response to Roaring Kitty’s investment in Chewy, GameStop’s stock experienced a 6.5% decline in premarket trading on Monday. This development raises questions about Gill’s decision to shift his focus from GameStop to Chewy and the implications for both companies. With GameStop undergoing a transformation under Ryan Cohen’s leadership, investors are closely monitoring the developments in the e-commerce and retail sectors.
Keith Gill’s entry into Chewy as a significant shareholder has brought new attention to the pet food e-commerce retailer and its potential for growth. The interplay between GameStop, Chewy, and Roaring Kitty underscores the evolving landscape of meme stock trading and retail investor activism. As Gill continues to navigate the financial markets and make strategic investments, his impact on individual companies and the broader market dynamics will be closely watched by investors and analysts alike.