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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.