The Power of Memes: Roaring Kitty’s Post Drives Chewy Stock Up by 34%
Shares of Chewy (CHWY) saw a dramatic surge on Thursday following a cryptic social media post by Roaring Kitty, a well-known figure in the meme stock community. Roaring Kitty, whose real name is Keith Gill, shared a picture of a cartoon dog on the social media platform X, which closely resembles the logo of the online pet food retailer. This simple act led to a swift 34% rise in Chewy’s stock, reaching a peak of $39.10.
Keith Gill has a reputation for stirring up trading activity in speculative stocks through his enigmatic online posts. He gained significant fame for his role in the GameStop trading frenzy of 2021, where he posted memes and cryptic messages that encouraged retail investors to buy shares and call options of GameStop, resulting in a massive short squeeze that caught hedge funds off guard.
The connection between Chewy and GameStop runs deeper than mere coincidence. GameStop’s current CEO, Ryan Cohen, is the founder and former CEO of Chewy. Cohen played a crucial role in PetSmart’s acquisition of Chewy in 2017 and its subsequent initial public offering (IPO) in 2019. In January 2021, Cohen, along with two other former Chewy executives, joined the GameStop board of directors, which was a significant factor in the initial GameStop rally. Cohen eventually became the CEO of GameStop in 2023, leading a turnaround effort for the video game retailer.
During the COVID-19 pandemic, shares of pet retailers like Chewy and Petco experienced substantial gains as people adopted pets in large numbers while staying at home. This trend drove up sales of pet accessories such as beds, leashes, and toys. However, as pandemic restrictions eased and people began to spend more time outside, the demand for discretionary pet items decreased. While Chewy and Petco have continued to see strong sales in pet food, revenue from higher-margin categories has declined.
Keith Gill’s influence on the market extends beyond his social media presence. As a former marketer for Massachusetts Mutual Life Insurance, he leveraged his expertise to inspire retail investors during the GameStop saga. His actions led to a series of congressional hearings in 2021, scrutinizing brokers’ practices and the “gamification” of retail trading.
The recent spike in Chewy’s stock underscores the ongoing impact of social media and meme culture on the stock market. As retail investors continue to follow figures like Roaring Kitty, the influence of memes and cryptic posts on trading activity shows no signs of waning.
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