Chewy Stock Takes a Dive After “Roaring Kitty” Revelation

Hold onto your hats, folks! Chewy, the online pet supply giant, saw its stock take a tumble after the revelation that popular meme stock trader, “Roaring Kitty” (aka Keith Gill), holds a sizable 6.6% stake in the company.

Here’s the breakdown:

• The Surge: Chewy’s stock price had been soaring in recent weeks, fueled by speculation that Gill’s investment would push the stock even higher. This is not unusual – Gill’s previous involvement with GameStop in 2021, which sparked a wild price rally, made him a bit of a market mover.

• The Dip: However, after Gill’s stake was publicly disclosed, Chewy’s stock took a dive. On February 17th, the stock dropped by 10.8%, closing at $29.01. This move wiped out a significant chunk of the recent gains.

Why the sudden shift?

While Gill’s investment might have initially attracted interest, the revelation of his stake actually provided a bit of clarity.

• No Longer a Secret: The fact that Gill’s stake was publicly known removed a significant element of uncertainty from the market. Investors who were hoping for a “GameStop-like” price surge might have pulled back, realizing that this was a more “traditional” investment.

• Fundamentally Sound? Some market watchers believe the dip might be a result of investors reevaluating Chewy’s fundamental performance. While the company has shown strong growth in recent years, questions remain about its long-term profitability.

The Bottom Line:

Chewy’s stock journey serves as a reminder that meme stock mania can be fleeting. While Gill’s involvement can generate hype, it doesn’t guarantee sustained price increases. Ultimately, the success of a stock hinges on factors like company performance and broader market trends.

Data Points:

• Chewy’s stock closed at $32.50 on February 16th, before the disclosure of Gill’s stake.

• The stock dipped 10.8% on February 17th, closing at $29.01.

• Gill’s 6.6% stake in Chewy is valued at approximately $500 million based on current market capitalization.

Stay tuned for more updates on Chewy’s stock performance and Gill’s continued influence on the market!