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In an unexpected market shift, several pet-related stocks experienced significant gains today, apparently triggered by a cryptic tweet from the social media personality and GameStop bull trader known as Roaring Kitty (aka Keith Gill).
The tweet, featuring only a cartoon image of a dog, appeared to spark a flurry of buying activity in the pet care sector, with a variety of major pet care stocks spiking immediately thereafter.
Chewy, Inc. saw its stock jump by 33% in a matter of about 15 minutes, per data from Google Finance. Meanwhile, PetMed Express, Inc. rose by over 7%, and Petco Health and Wellness Company, Inc. experienced a 14% increase following Roaring Kitty's tweet featuring a cartoon image of a dog. In all cases, the price jump didn’t last for long.
Roaring Kitty (aka DeepFuckingValue) gained widespread attention and acclaim during the GameStop stock frenzy in early 2021.
— Roaring Kitty (@TheRoaringKitty) June 27, 2024
Gill, an investor and popular YouTuber, was a central figure in the Reddit-driven trading phenomenon that saw GameStop's stock price skyrocket in 2021 and triggered the broader meme stock phenomenon. His analysis and charismatic online presence have since made him a significant influencer in the stock market, particularly among retail investors.
His tweet Thursday featured a cartoon dog image without any accompanying text. Despite the lack of context, the tweet was enough to spark a wave of enthusiasm among his followers and the broader market, leading to a notable increase in the stock prices of pet-related companies.
Gill is really only known for being a GameStop bull, with his tweets, Reddit posts, and YouTube livestreams prompting massive swings in value for GME’s share price over the years—including over the past two months after he reemerged following a three-year hiatus.
Traders may be hoping that he aims to expand his focus outside of just the video game retailer. But there’s another potential angle here: Current GameStop CEO Ryan Cohen is the founder and former CEO of Chewy. Given Roaring Kitty’s propensity for sharing memes with hidden messages, some traders may have assumed some intentions based on that history.
The surge in pet stocks following Roaring Kitty's tweet highlights the continuing influence of social media and meme culture on the stock market. This phenomenon, where stocks gain significant value based on viral trends and social media posts rather than traditional financial metrics, has been a point of discussion among market analysts.
Veteran New York Stock Exchange floor trader Peter Tuchman, aka the “Einstein of Wall Street,” issued a stern warning this week regarding the ongoing GameStop trading craze.
In an interview on Yahoo Finance's Opening Bid on Wednesday, Tuchman voiced serious concerns about the influence of social media on trading decisions. He criticized Roaring Kitty and other traders with large social media followings for inciting emotions such as greed and jealousy among novice investors.
"Social media has created this platform of envy, jealousy, need, and greed. That's the bottom line," said Tuchman.
GameStop is trading at $25.09, up nearly 4% for the day.
Edited by Andrew Hayward