The stock market saw a wild ride on Thursday as Chewy (CHWY) stock surged by as much as 30% following a seemingly innocuous tweet from investor Keith Gill, also known as “Roaring Kitty.” The catalyst for the sudden spike? A picture of a dog posted on Gill’s account.
Gill, whose posts have previously driven up shares of GameStop (GME), had been relatively quiet on the meme stock front in recent days. However, his tweet at 1 p.m. ET sent Chewy’s stock soaring, only to quickly give back some of its gains. Despite the initial excitement, the stock was up just 2% more than an hour after the tweet.
Interestingly, Chewy had announced a $500 million share repurchase program after the market close on Wednesday, but the news failed to move the needle until Gill’s tweet. In a recent YouTube livestream, Gill praised GameStop CEO Ryan Cohen, who also happens to be the founder of Chewy, highlighting his faith in the company’s management.
The ripple effect of Gill’s tweet was felt beyond Chewy, with other pet-related stocks like Petco (WOOF) and PetMed Express (PETS) also seeing gains in afternoon trading. Meanwhile, GameStop, which had previously surged following Gill’s reemergence on social media, saw a more modest 5% increase on the day.
The meme frenzy surrounding GameStop first reignited last month when Gill made his return to X (formerly Twitter), leading to a 180% rally in the stock. However, GameStop’s recent sales decline and stock issuances have tempered some of the enthusiasm.
As investors try to decipher the impact of social media on stock prices, one thing is clear: Keith Gill’s online presence continues to have a significant influence on the market. Stay tuned for more updates on this evolving story.
