The stock price of online pet retailer Chewy (CHWY) surged on Monday after retail investors, fueled by social media enthusiasm, piled into the stock. The surge was sparked by the revelation that Keith Gill, the self-proclaimed "Roaring Kitty" trader made famous by his GameStop stock picks, had purchased a significant stake in Chewy.
The stock price of online pet retailer Chewy (CHWY) soared on Monday, riding the wave of meme stock mania that has swept through the financial markets in recent months. The surge was sparked by the revelation that Keith Gill, the self-proclaimed "Roaring Kitty" trader made famous by his GameStop stock picks, had purchased a significant stake in Chewy.
Chewy Stock Soars as Meme Stock Mania Continues
Gill, who has amassed a large following on social media platforms such as Reddit and YouTube, announced his purchase of Chewy shares in a video posted to his YouTube channel on Sunday. In the video, Gill praised Chewy's business model and long-term growth prospects, saying that he believed the stock was undervalued.
Gill's endorsement of Chewy sent the stock price soaring in pre-market trading on Monday. The stock opened at $95.06, up more than 10% from its closing price on Friday. The stock continued to rise throughout the day, reaching a high of $106.27 before closing at $99.22, up 9.2% on the day.
The surge in Chewy's stock price is the latest example of the power of retail investors in the current market environment. Meme stocks, which are stocks that have become popular on social media platforms, have been rallying in recent months, driven by the enthusiasm of retail investors who are using online platforms to trade stocks.
The rally in meme stocks has been fueled by a number of factors, including the rise of retail trading platforms, the availability of low-cost brokerage fees, and the widespread use of social media. Retail investors are using these platforms to share information and ideas about stocks, and they are often able to move stock prices with their combined buying power.
The surge in Chewy's stock price is a reminder that the stock market is not always rational. Meme stocks can be volatile, and their prices can be driven more by social media hype than by fundamental factors. Investors should be aware of the risks involved in investing in meme stocks, and they should only invest an amount of money that they can afford to lose.
Despite the risks, meme stocks can also be a source of profit for investors who are willing to take on risk. If you are considering investing in a meme stock, it is important to do your research and understand the risks involved. You should also only invest an amount of money that you can afford to lose.
