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Meme Stock Investor Roaring Kitty Posts Cryptic Image of a Dog, and Chewy Stock Soars

Keith Gill, the meme stock investor who calls himself Roaring Kitty on social media, is credited with help raise GameStop’s stock price has been surging in recent weeks. Now it appears that the former financial analyst’s influence on Thursday has boosted some pet-focused companies.

Early in the afternoon, Roaring Kitty posted an image of a cartoon dog — with no accompanying text — to her X account, the former Twitter. Shortly after, shares of Chewy, Petco and PetMed Express soared. Chewy shares, which opened at $28.85 on Thursday, jumped to $39.10 after Gill’s post, a gain of 36%. However, shares of the pet supply company pulled back later in the afternoon, closing at $29.05.

Petco shares rose as much as 14%, while PetMed shares gained 10%. Shares of these companies also gave up most of their gains as of Thursday’s close of trading.

Chewy, Petco and PetMed Express did not immediately respond to a request for comment Thursday.

Gill’s post comes a day after Chewy announced it would spend $500 million to repurchase 17.5 million of its own shares. Companies generally repurchase shares to increase their earnings per share or to increase the return for existing shareholders.

Roaring Kitty is no stranger to observing market movements after posting cryptic images on social media. Last month, he posted a picture of a drawn man leaning forward in a chair, marking the end of a roughly three-year hiatus from social media. He followed that post with several others featuring various comeback-themed videos featuring movie clips and charged music.

In 2020, Gill’s online influence exploded after he encouraged people to invest in GameStop, whose shares he had started buying the previous year and which had soared throughout the 2000s. The Stock Market Meme Frenzy of 2021His favorite social media platforms: discussion forums Reddit and YouTube, where he posted videos about his opinions on financial markets and undervalued stocks.

“I thought (GameStop) was significantly undervalued by the market,” Gill said during his testimony before the House Financial Services Committee in 2021. “The dominant analysis on GameStop’s impending doom was simply false.”

Granted, Gill benefited from the GameStop stock buying promotion, but he also lost big afterward. In 2021, for example, Gill revealed that he had lost 13 million dollars in a single day as shares of the gaming retailer fell.

Gill’s investment in GameStop eventually became a plot point for the 2023 film “Dumb Money,” which stars Gill as actor Paul Dano.



News Source : www.cbsnews.com
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