CHWY - Why Chewy Stock Popped Then Dropped Today
2024-07-01 10:50:40 ET
Shares of pet e-commerce company Chewy (NYSE: CHWY) popped on Monday after a famous investor disclosed a massive stake in the business. But the move didn't hold. As of 10:15 a.m. ET, Chewy stock was down 4%. But it had been up by 10% in early trading and up even more than that in pre-market trading.
Keith Gill -- also known as Roaring Kitty -- is famous for his love of GameStop stock and he was an investor when it had its famous short squeeze in 2021. But today, Gill filed paperwork with the Securities and Exchange Commission (SEC) that showed he owns over 9 million shares of Chewy, or 6.6% of the company.
Gill's disclosure initially sent shares of Chewy soaring -- a lot of people monitor Gill and follow him into investments, as is the case with many famous investors . However, this is a good example of how futile it is to predict stock movements on a short-term basis. Early excitement led to big pre-market gains but the stock has surrendered all of those gains and more in less than one hour of trading. Where it trades by the end of the day is anyone's guess.
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Why Chewy Stock Popped Then Dropped Today