Roaring Kitty Sends Chewy, Petco Stocks Soaring

Show Transcript
Bloomberg Jun 27 17:10 · 8687 Views

Shares of Chewy and Petco soared after Keith Gill - known online as "Roaring Kitty" - posted a meme on X of a dog. The rallies were short-lived and both stocks finished the day lower. Bloomberg's Abigail Doolittle reports.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more

Transcript

  • 00:00 Abigail Doolittle joining us right now to help us sort out what this dog means.
  • 00:04 Abigail,
  • 00:05 let's first start off with the market moves because I mean, this was phenomenal.
  • 00:08 I mean, really when you talk about the lows of the day that we had on both of these stocks, this was really like a 40% move on Chewy.
  • 00:14 You had
  • 00:14 something like a 12 to 15% move on Petco, all based on this.
  • 00:18 And of course, the stocks sold off almost as quickly as they rose here.
  • 00:21 What's going on?
  • 00:22 It's really unbelievable to me that you can have a stock go up
  • 00:25 30% on a closing basis if it had closed at the highs or 40% on an intraday basis, all based on a meme of a cartoon dog.
  • 00:33 I mean, it's sort of ridiculous.
  • 00:34 If anything, I feel would have been better if it had been a real dog instead of a cartoon.
  • 00:37 Well, you know, that might have given a little more weight.
  • 00:39 But I think that if anything, this is really a message to the Fed.
  • 00:42 There's so much liquidity in this system that this message to the Fed.
  • 00:45 I really do because
  • 00:47 there's just no
  • 00:48 here, there's so much excess liquidity that it's fine.
  • 00:51 It's able to find a home very quickly like this in a,
  • 00:54 you know, in a stock like,
  • 00:57 like Chewy, like Petco.
  • 00:59 But GameStop, because of course there's the Ryan Cohen connection between GameStop and Chewy.
  • 01:03 GameStop itself had a big spike earlier today ahead of these spikes.
  • 01:07 It spiked
  • 01:08 about 10%
  • 01:09 from the
  • 01:11 the open toward the highs.
  • 01:13 It's now still up 3.2%.
  • 01:15 Petco down slightly.
  • 01:16 Chewy hanging on to again.
  • 01:17 The question is, will it close higher?
  • 01:19 I tend to think not.
  • 01:20 What goes up must come down.
  • 01:21 It's absurd.
  • 01:22 But to your point about the liquidity part, like the GameStop, you know, 2021 lasted a lot longer and ran a lot harder the GameStop.
  • 01:29 This year,
  • 01:30 not as long.
  • 01:31 This was a day like I feel like it was.
  • 01:33 It was 15 minutes
  • 01:34 are are not as long as they were before.
  • 01:36 Well, I think a piece of it is back in 2021 there was this sense that
  • 01:41 it was the institutional traders versus the retail traders and there was
  • 01:46 a moral sense that the retail trader could actually beat the institutional trader.
  • 01:50 Now I think that there's a moral sense what's going on here?
  • 01:53 How can some traders with one single stock of a cartoon dog
  • 01:56 make a stock go up 30% in a day?
  • 01:59 And also with the Game Stop situation with Roaring Kitties not so long ago,
  • 02:02 not knowing what sort of profits Keith Gill made on
  • 02:05 on game stuff, I think there's more questions now as opposed to this camaraderie of let's take these old school stocks and make them
  • 02:12 rise.