The pet product retail company Chewy is being taken on a meme-stock ride following financial moves by “investor” Keith Gill.
Ah, meme stocks, the latest craze where internet hype meets questionable financial decisions.
These stocks soar not because of solid fundamentals or innovative products, but because a horde of online investors decides it’s the next big thing. Forget about earnings reports and market analysis; a clever meme or viral post on Reddit is all it takes to inflate prices to absurd levels. Sure, some lucky few might cash in, but most are left holding the bag when the bubble inevitably bursts.
Here’s a bit of what NBC News published on Chewy’s stock value:
Chewy shares initially jumped 11% but have since turned negative, trading down 6% midday Monday.
The turbulence comes after Keith Gill, the leader of the “meme stock” movement who is better known online by his handle “Roaring Kitty,” revealed he had taken a significant stake in the company.
Gill had foreshadowed the Chewy holdings in a post on X last week that was simply a dog emoji.
Chewy shares — as well as other stocks in the pet trade — rallied immediately after the post Thursday.
On Monday, an SEC filing showed Gill had purchased shares worth approximately $245 million, or about 6.6% of the entire company at Friday’s closing price. Gill also mocked up his own version of the standard SEC 13G filing form by adding a section stating he was “not a cat.”