Keith Gill’s Investment in Chewy Causes Stock Surge and Volatility

Keith Gill, the stock influencer known as ‘Roaring Kitty‘, caused a surge and subsequent volatility in Chewy’s stock after disclosing a 6.6% stake in the pet products e-retailer.

The filing with the U.S. Securities and Exchange Commission (SEC) demonstrated Gill’s purchase of the stake just days before posting an image of a puppy on social media platform X, which briefly boosted Chewy shares to a near one-year high.

Chewy shares initially rose 15% premarket on Monday, but the gains were short-lived, with the stock reversing all its advances shortly after the New York Stock Exchange opened. By 10am, Chewy was already down 1.6%.

Gill’s holdings amount to 9 million shares of Chewy, translating to a stake valued around $245 million based on Friday’s closing price. This makes Gill the pet retailer’s third-largest shareholder according to LSEG data.

Gill, who garnered attention for his role in the 2021 GameStop meme-stock rally, is known for his presence on platforms like Reddit and YouTube, where he posts under the handle ‘DeepFuckingValue’.

The filing included a peculiar section where Gill had to declare whether he is a cat, to which he humorously responded ‘I am not a cat’.

The sudden interest in Chewy sparked discussion among analysts, with some speculating that Gill’s investment could be influenced by the fact that the pet retailer was founded by GameStop CEO Ryan Cohen.

Chewy’s counterpart, Petco Health and Wellness Company, also saw fluctuations in its share price following Gill’s involvement in Chewy, despite having gained over 13% since Gill’s original post.

Trading activity in Chewy stock options has been notably high, with an increase in call options, signaling bullish sentiment among traders who anticipate further price movements.

While GameStop’s shares have also been tumultuous since Gill’s return to Reddit in June, the meme-stock influencer continues to impact the market with his strategic investments and online presence.