GameStop Jumps 3.4% After Roaring Kitty Dumps Chewy — One Ryan Cohen-Linked Stock Now Near 'Oversold' Levels

GameStop Corp. (NYSE:GME) and Chewy Inc. (NYSE:CHWY) displayed contrasting market movements in overnight trading Tuesday, with GameStop climbing 3.44% while Chewy shares declined 1.84% on Robinhood’s extended trading platform.

What Happened: The divergent price action comes as Keith Gill, popularly known as “Roaring Kitty”, a key figure in the 2021 meme stock movement, sold his 6.6% stake in Chewy, according to Tuesday’s filing. This development affects both companies connected to Ryan Cohen, who serves as GameStop’s CEO and is Chewy’s founder.

During the 2021 meme stock surge, Gill’s publicly shared analysis and YouTube videos helped attract retail investor attention to GameStop, leading to unprecedented price volatility and congressional hearings.

Cohen, who founded Chewy and sold it to PetSmart for $3.35 billion in 2017, initially invested in GameStop in 2020 through his RC Ventures firm. He later became the company’s chairman in 2021 and was recently appointed as CEO, creating a unique connection between both companies.

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The Relative Strength Index readings show a notable difference between the two stocks. According to Benzinga Pro, RSI values below 30 typically indicate oversold conditions, while readings above 70 suggest overbought status.

Gill, who recently returned to social media after a three-year absence, had previously signaled his interest in Chewy through a dog image posted on X in June, coinciding with his disclosure of the 6.6% stake in the pet retailer. On Sep 6, he posted a meme showing the same dog being discarded, similar to a scene from “Toy Story,” preceding his exit from the position.

Prior to this development, Gill’s last known position update on Reddit showed holdings of approximately nine million GameStop shares as of June, making Chewy his only other publicly disclosed investment outside of GameStop.

Price Action: GameStop is trading at $23.68 in pre-market, up 4.41%. In contrast, Chewy is priced at $26.15, down 2.02%, in pre-market trading, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.