‘Roaring Kitty’ takes Chewy stake
Chewy shares were volatile on Monday after famed meme stock trader "Roaring Kitty," also known as Keith Gill, bought a 6.6% stake in the company.
Gill bought just over 9 million shares of the online pet retail site founded by GameStop CEO Ryan Cohen, according to a filing with the U.S. Securities and Exchange Commission. The stake is valued at over $230 million.
Cohen sold Chewy to the owners of PetSmart in 2017 for $3.35 billion. At the time, Cohen touted that it was the largest e-commerce acquisition in history. Shares have risen over 9% this year.
GAMESTOP SHARES VOLATILE AFTER EARNINGS AND AHEAD OF ‘ROARING KITTY’ LIVE STREAM
Gill first gained fame through his involvement in the GameStop stock saga of 2021. This not only earned him a large following, but he subsequently became a prominent figure in the world of investing even though he went silent for several years.
GAMESTOP SHARES SURGE AFTER 'ROARING KITTY' POST
However, in May, Gill returned to social media after a three-year hiatus with a post depicting what appeared to be a gamer sitting on a chair. He then followed up with a livestream that attracted nearly 600,000 in which he endorsed Cohen and his team.
His attention to the shares sparked a buying frenzy in GameStop by Reddit users and other retail investors despite no concrete news. The stock experienced weeks of swings and currently is up over 28% year-to-date.
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The surge following Gill's post in early May underscored the company's loyal following, GameStop co-founder Gary Kusin told FOX Business.
"The relationship between the company and its fans becomes much stickier as these fans will advocate for the company in the face of any adversity," Kusin said.
Reuters contributed to this report.