GameStop Shares Surge on Roaring Kitty’s Return; Chewy Dips Following Cryptic Dog Post

GameStop (GME) shares experienced a notable rebound on Thursday, continuing into Friday, following the return of Keith Gill, better known as Roaring Kitty, to social media. Gill’s reappearance, after more than a week of silence, provided a significant boost to the stock. Known for his influential role in the meme stock phenomenon, his latest post helped push GameStop’s shares up by 3.7% on Thursday, starting from a deficit, and by an additional 0.6% on Friday.

Despite the absence of any clear material catalysts for the stock’s gains, this behavior aligns with the typical volatility associated with GameStop. The company’s shares have surged over 50% since January, although they have retracted by about 50% from their peak in May. This pattern reflects the ongoing allure and unpredictability of what has become a flagship name in meme stock trading.

The resurgence in interest around GameStop coincides with Gill’s return to the social media scene. In 2021, he became a central figure in a trading surge that saw droves of retail investors rally around select stocks, pushing their values to unprecedented heights. This week, Gill ended a silence of over ten days with a post that featured a cryptic cartoon dog image, sparking speculation and activity around GameStop shares once more.

However, the wider meme stock frenzy appears to be cooling off. Signs of this trend include the diminishing trading volumes of GameStop and other meme favorites like AMC (AMC) , indicating a potential stagnation in interest.

In a related development, shares of Chewy Inc. (CHWY) saw a sharp decline, dropping by 9.7% on Friday. This followed a speculative surge on Thursday tied to Gill’s post, which some investors interpreted as a nod to the online pet-products retailer, given the dog image. The speculation continued to influence trading activities, highlighting the significant impact of social media narratives on stock movements.

Roaring Kitty’s influence remains a pivotal support for GameStop, but the continued volatility underscores the need for more than just social media activity to sustain investor interest in the long term.