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Key Takeaways
- Chewy shares sank after briefly soaring Thursday when a picture of a cartoon dog was posted on the social media site of meme stock hero “Roaring Kitty.”
- Shares of the pet supplies retailer, as well as those of rival Petco Health and Wellness, jumped as the post was interpreted as a sign he was pushing the stock.
- Roaring Kitty, whose name is Keith Gill, has been driving moves in meme stocks, especially GameStop, after he returned to social media following a three-year hiatus.
Chewy ( CHWY ) shares moved sharply lower Friday as some investors decided the meme stock hero known as “ Roaring Kitty ” wasn’t signaling interest in the pet supply retailer.
Shares of Chewy skyrocketed as much as 34% on Thursday after Roaring Kitty, whose real name is Keith Gill, posted a picture of a cartoon dog on his X account, a move that was initially interpreted as a sign he was pushing the stocks. As investors determined that might not be the case, the shares plunged.
Chewy’s shares were down about 8% in mid-afternoon trading Friday, Shares of rival Petco Health and Wellness ( WOOF ), which also gained after the Roaring Kitty post on Thursday, rose another 12% on Friday.
Roaring Kitty Drove Fresh Meme Stock Frenzy in May
Gill, one of the key drivers of the 2021 meme stock craze, has a knack for roiling the markets. After disappearing from social media for three years, he kicked off a fresh meme stock frenzy with a May post on X indicating that he was back in action.
A big beneficiary was GameStop ( GME ), which saw its shares soar. A month later, Gill posted what appeared to show a large position in the video game retailer, driving up shares again. Later, when he held a livestream event to discuss the stock, investors seemed unimpressed.