Chewy Volatile After Roaring Kitty Stake Disclosure

Shares of Chewy experienced significant volatility following the disclosure by Keith Gill, also known as 'Roaring Kitty,' that he had taken a 6.6% stake in the company, amounting to 9 million shares worth around $245 million. This revelation initially sent Chewy's stock soaring by more than 20% in pre-market trading, but the gains were quickly lost, and the stock ended up falling by 4-5% after the opening bell. Gill, who gained fame during the GameStop trading frenzy in 2021, posted a cryptic image of a puppy on social media, which initially spiked Chewy’s shares. His involvement has led to speculation about potential market manipulation, and he is currently facing a class-action lawsuit accusing him of running a 'pump-and-dump' scheme. Despite the initial surge, Chewy's stock has struggled, demonstrating the fleeting impact of meme stock rallies in the current market. Gill has not provided detailed reasons for his interest in Chewy, but it may be influenced by the company's founder, Ryan Cohen, who is also the CEO of GameStop.