Trading ripples for Chewy, GameStop, and AMC Entertainment after Roaring Kitty returns to social media posting

Roaring Kitty’s first social media post since June 27 created some trading ripples with Chewy (NYSE:CHWY), GameStop (NYSE:GME), and AMC Entertainment (NYSE:AMC) on Friday.

Sticking with a movie theme with his posts, Roaring Kitty (Keith Gill) altered a scene from Toy Story to show a dog being dropped from the hands of the Andy character. Some traders may be taking that as a clue that Roaring Kitty has exited or sold some of his 6.6% stake in Chewy (CHWY).

As of 12:38 p.m., shares of Chewy (CHWY) were up 1.11%, but were below their session highs. GameStop (GME) was up 3.31% after it pared its initial pop from the Roaring Kitty drama. AMC Entertainment (AMC) was up 1.69% as it also quickly reversed an initial jump. Algo trading may be accounting for some or most of the volatile moves.

Roaring Kitty disclosed a significant 6.6% stake in Chewy (CHWY) in July. The investment, valued at approximately $261 million, consisted of over 9 million shares. The development triggered substantial volatility in Chewy’s (CHWY) stock, causing an initial surge of up to 16% in premarket trading before it settled back. Earlier on Friday, Morgan Stanley called Chewy (CHWY) its favorite name in SMID e-commerce. “We continue to see CHWY’s valuation as attractive, especially as it has often warranted a premium historically with best-in-class cohort dynamics, a resilient end market, and leading share in an oligopoly industry structure,” stated the firm.