GameStop Stock Falls 9% as Roaring Kitty Turns Attention to Chewy

GameStop (GME) fell another 9% after the weekend, indicating that the stock is suffering from a lack of attention now that influencer Keith Gill, aka Roaring Kitty, has turned his attention to other meme assets.

After closing at $24.81 on Friday afternoon, GME fell 9.47% on Monday morning to $22.46. It has since recovered slightly to $23.39 at the time of writing.

The drop comes as Gill, GME most eminent lawyerresurfaced online recently to say nothing about GameStop, but instead to promote a new meme stock: Chewy (CHWY), an online pet food retailer.

On Thursday, Gill posted a cryptic image of a cartoon dog that many mistook for Chewy’s logo. In 15 minutes, CHWY climbed by more than 33%Traders speculated that Gill might have chosen Chewy because the pet company’s founder and former CEO, Ryan Cohen, is the current CEO and largest shareholder of GameStop.

The tweeted reference does not appear to have been a coincidence. A form filed with the U.S. Securities and Exchange Commission (SEC) on Monday noted that Gill bought more than 9 million CHWY shares last week, a position that would give him a 6.6% stake in the company.

Filing of false files Investing to boost stock value is a fact of life on Wall Street, and Gill has yet to make a public statement about his stake in Chewy. CHWY has fallen about 13% since peaking last week at $26.07 at the time of writing.

One thing that’s not up for debate about Gill’s pivot to Chewy, however, is that it pulled the rug out from under GameStop. When Gill resurfaces online After years of silence and enthusiastic references to GME, the stock went crazy, quadrupling in value. It has since fallen nearly 64% from those mid-May highs.

But most importantly, GameStop remains well above where it was before Roaring Kitty’s latest issue. Just a month before Gill’s surprise return to Twitter on May 12, GME was hovering around $10. Today, it’s worth more than double that.

On Monday, a class of disgruntled investors filed a federal complaint against Gill, accusing him of violating securities laws and manipulating the price of GME for his own benefit.

Edited by Andrew Hayward