GameStop (GME) saw a notable increase in its stock value after Roaring Kitty, a key figure in the meme-stock movement, made his first social media post since June. The excitement surrounding Roaring Kitty’s return had significant impacts on GameStop, Chewy, and AMC Entertainment stocks.
Roaring Kitty’s Return Sparks GameStop Stock Surge
Roaring Kitty, the influential meme stock enthusiast known for his pivotal role in the 2021 GameStop short squeeze, made headlines again last Friday. His latest tweet, his first since June, triggered a remarkable 5% jump in GameStop (GME) shares. Roaring Kitty, whose real name is Keith Gill, is renowned for his past involvement in driving GameStop's stock to unprecedented heights by leveraging social media influence.
Gill’s post, featuring a meme from Pixar’s “Toy Story 2,” hinted that he might be moving away from Chewy Inc. (CHWY). This meme, depicting a scene where Andy drops his toy cowboy, Woody, was interpreted by many as a sign that Gill was less interested in Chewy. This speculation led to a sharp 3.7% drop in Chewy’s stock value, although it quickly rebounded.
— Roaring Kitty (@TheRoaringKitty) September 6, 2024
The Impact of Roaring Kitty’s Meme on Market Dynamics
Roaring Kitty’s return was marked by a meme referencing a famous scene from “Toy Story 2,” where a toy is discarded. This clever post ignited a significant market movement, with GameStop (GME) stock soaring by 8.2% shortly after the tweet, reflecting the market’s anticipation of Gill’s influence. Conversely, Chewy Inc. (CHWY) experienced a brief decline, dropping 3.7% in response to the perceived message in Gill’s meme.
Earlier this year, Gill disclosed a 6.6% stake in Chewy, valued at approximately $261 million. This investment caused a notable surge in Chewy’s stock price, demonstrating the impact of Roaring Kitty’s endorsement. However, with his recent meme suggesting a potential shift in focus, the market’s reaction was swift, albeit short-lived.
Market Reactions to Roaring Kitty’s Social Media Activity
Roaring Kitty’s first post since June created ripples across the market, affecting not only Chewy (CHWY) and GameStop (GME) but also AMC Entertainment (AMC). As of 12:38 p.m. on the day of the post, Chewy’s stock had risen by 1.11%, although it was below its session highs. GameStop’s stock increased by 3.31%, while AMC saw a 1.69% rise, demonstrating the broad impact of Roaring Kitty’s influence.
AMC Entertainment (AMC) also saw a slight increase following the social media buzz, though it quickly adjusted from its initial spike. The volatility in these stocks highlights the significant role social media can play in market dynamics, especially when influential figures like Roaring Kitty are involved.
Conclusion
Roaring Kitty’s latest social media post has once again demonstrated the powerful impact that influential figures can have on stock prices. The GameStop (GME) stock surged following his tweet, while Chewy Inc. (CHWY) experienced a brief dip before recovering. The reactions from AMC Entertainment (AMC) and other market players further underscore the market's sensitivity to social media-driven sentiments.
For investors and market enthusiasts, keeping an eye on social media activity from key figures like Roaring Kitty can offer valuable insights into potential market movements.