Chewy jumps after trader Roaring Kitty posts photo of cartoon dog | Wilnesh News

Chewy Meme stock leader Roaring Kitty soared Thursday after posting an image on social media platform X that resembled the online pet food retailer’s logo.

Roaring Kitty, whose legal name is Keith Gill, instigated trading in speculative names like GameStop by posting cryptic images and memes online. A photo of a cartoon dog appeared on his X feed Thursday afternoon, briefly sending Chewy shares up 34% to $39.10.

The stock subsequently fell into negative territory again, down 0.5%.

There’s also a strong connection between meme stocks GameStop and Chewy. GameStop CEO Ryan Cohen, the founder and CEO of Chewy, was instrumental in PetSmart’s acquisition of Chewy in 2017 and its subsequent IPO in 2019.

Cohen joined GameStop’s board of directors in January 2021, along with two other Chewy executives, and was partly responsible for GameStop’s initial rally. He then took over as CEO of GameStop in 2023 and led the brick-and-mortar video game retailer’s turnaround.

Shares of pet retailers such as Chewy and Petco have surged as consumers stuck at home adopted dogs and cats during the pandemic. With the adoption coming, they purchased the accessories they needed for their furry family member, such as a new bed and leash.

But as the pandemic ends and people start going out again, adoptions slow and consumer demand wanes for discretionary pet supplies like toys and cages, which have higher profit margins than pet food.

Pet food sales at Chewy and Petco have been strong over the past year or so, but revenue in higher-margin categories has declined.

Jill is a former marketer for Massachusetts Mutual Life Insurance Company. He came into the spotlight after successfully encouraging retail investors to buy GameStop shares and calls in 2021 to crowd out short-selling hedge funds. The frenzy of 2021 led to a series of congressional hearings in which Gill weighed in on brokers’ practices and “Gamification” Retail trade.