Keith Gill is back making headlines. But this time, it’s not about his GameStop ($GME) investments.
Yesterday, the SEC revealed that the stock investor now owns a 6.6% stake in the pet food retailer Chewy.
Following the announcement, Chewy’s stock price surged by nearly 7% and has since dropped by nearly 4%. A copy-cat SOL coin called $CHWY also spiked by nearly 38% despite having no official connection to the online pet store.
Gill’s weighty stake in the pet food company and the price movements of the mysterious $CHWY have raised many questions. Let’s explore the situation.
Gill’s Latest Social Media Teasers
Gill’s Chewy investment follows his recent return to the stock market after a three-year absence.
In June, he revealed on Reddit that he had bought $115.7M worth of $GME, and the price of $GME spiked by 106% at the same time.
The stock investor’s social media posts about his financial interests seem to directly influence stock prices. His most recent one was an X post of a cartoon dog with a blue background (the same color as Chewy’s logo) ahead of his stake in the online pet store.
— Roaring Kitty (@TheRoaringKitty) June 27, 2024
Coinciding with Gill’s X post, Chewy’s shares spiked by around 17%, rising from $27 to $32 the same day. The stock’s price now hovers around the $25 mark.
The $CHWY coin (created days after the investor’s social media ‘teaser’ and featuring the same dog image) also made gains during the same time. It surged by 35%, implying a strong reaction to his financial activities.
This same image was also notably shown in one of the social media influencer’s X videos (before the $GME funding). The aim was likely to test public reaction and build anticipation and interest surrounding Chewy to maximize profits.
— Roaring Kitty (@TheRoaringKitty) May 15, 2024
Also potentially demonstrating the impact of Gill’s social media and investor influence is the fact that several other pet stocks also increased since the SEC unveiled Gill’s investment:
Legal Woes Over Gill’s Social & Financial Moves
Still, Gill’s financial and social media actions do not come without consequences. His Chewy investment comes after a class-action lawsuit alleging he manipulated $GME market movements.
Though the court case has been dropped, questions and debates about the ethics of Gill’s social media stance continue to be raised about his ability to steer stock prices to greater heights.
Many regulators and financial investors have suggested his social posts qualify as market manipulation. E-trade even considered booting Gill off its trading platform following his $GME funding.
E*Trade is considering removing Keith Gill “Roaring Kitty” from its platform due to market manipulation.pic.twitter.com/8hWdwrdAzw https://t.co/77xTOyGwLk
— Financelot (@FinanceLancelot) June 3, 2024
To top this off, there has been chatter in the crypto community about whether institutional investors had optimized their trading bots according to certain words or phrases Keith Gill used during his live stream.
The cause of this chatter was unusual trading activities. When he mentioned ending the stream, for example, 4 minutes before the video finished, there was an uptick in the number of unrelated accounts suddenly posting and potentially manipulating traders to make money, raising bot activity concerns among social media users.
Wrap Up
Social media influence and trading bots can pose challenges through misleading trends and market manipulation, sometimes causing investors to experience setbacks. The price of both $GME’s and Chewy’s stocks slumped after rising following Gill’s investments.
However, $CHWY has been making moves with a 110.77% uplift since its launch despite having no apparent involvement with the pet store or utility.
This indicates the weight of investor sentiment and market trends beyond Chewy’s pet products.
To combat institutional investors, traders may consider using trading bots like WienerAI to help them make more efficient and profitable investments.
Check out the best crypto presales to invest now
Our Editorial Process
Our Editorial Process
Share 
Leah Alger Senior Crypto Journalist 
Question & Answers (0)