Roaring Kitty is back at it again. Keith Gill, the man behind the most influential meme stock account in the world, is back to posting. Today’s post on X, formerly Twitter, of a cartoon dog with its tongue hanging out has investors anticipating the meme trader may be targeting Chewy (NYSE:CHWY) next. This picture alone sent shares of CHWY stock up more than 11% in earlier trading, though the stock has since given up most of these gains this afternoon.
It’s unclear what was meant by this post. But what’s clear is that many on social media are interpreting this picture differently. Gill has begun posting once again and is focusing most of his efforts on memes, providing hints to his followers about his next moves.
Gill made a killing off of the previous meme stock surge, with millions in cash still in his trading account many have suggested could be deployed to other stocks. Let’s dive into whether Chewy is his next target, and why that may be.
CHWY Stock Soars on Meme Stock Speculation
There are many management teams out there that would love to be in the same position as GameStop (NYSE:GME) and other meme stocks that surged in part due to the social media movements on Reddit and other platforms in 2021. Interestingly, there are some similarities between Chewy and GameStop that could precipitate some buying by retail investors like Keith Gill.
For one, Gill has spoken favorably about Ryan Cohen in the past. He believes that Cohen (who founded Chewy and is now the CEO of GameStop) is pivotal to the turnaround thesis at the flailing video game retailer. If that’s core to his thesis, then investing in the company Cohen knows best makes sense.
Perhaps Roaring Kitty is testing out the market to see how much his posts can move given stocks. Or perhaps he’s already in this name. There’s too little information for many investors to go on, which is why I think CHWY stock has made a big move lower this afternoon.
Whatever the case, this could be the next battleground stock retail investors may want to pay attention to. Whether the crowd has enough collective capital to force another short squeeze in any of these stocks remains to be seen. But I have a feeling we’ll soon find out.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
