Roaring Kitty's Spontaneous "Cryptic" Tweet Sends $GME Shares Soaring (And $CHWY Dumping)...

Eminem: Guess who's back… back again?!

Wall Street Bets: Roaring Kitty babay!

Yes, yes that’s right my friends, after a thrilling (and quite nice) two-month hiatus of Roaring Kitty not causing havoc in the meme world - the man, the myth, and the legend has finally returned, gracing us peasants with his divine social media presence once more.

(Source: Giphy) 

And as expected, the market lost its collective sh*t over it in… you guessed it… Gamestop. Whaddya know? 

As the story goes, this past Friday, Roaring Kitty posted one heck of a cryptic meme referencing a Toy Story 2 scene signaling his breakup with Chewy ($CHWY), the pet supplies retailer in which SEC filings had revealed (earlier in the year) that he owned a whopping 6.6% of the company. 

(Source: X) 

However, even though the stock has performed rather well for meme traders, and Roaring Kitty, with an impressive +17.18% YTD gain, and a +10.51% gain over the past month - this one tweet completely reversed the trend and the hype on Ryan Cohen’s pet company.  This had degenerates frantically reading between the lines as Chewy’s stock took a nice little nosedive on the day, dropping south of -3.7% (adding to its -10.77% downfall over the past five trading days). 

(Source: Econo Times) 

On the other hand, with a perfect example of the markets “zero-sum” nature, when one meme stock loses da Kitty’s attention, another one gains it as this spontaneous “announcement” had GameStop HODL’ers howling like a pack of wolves - resulting in a massive +6.83% surge in $GME shares towards the end of Fridays close (contributing to the companies impressive YTD rise of +43.49%). 

(Source: Market Watch) 

So clearly, quite a bit of drama took place in the market towards the end of the week, and while we are all sitting on the edge of our seats to see where this momentum will take us this week - it’s hard not to sit back in “awe” with how easily Roaring Kitty can move the friggin market. 

I mean seriously, since 2021, when we were all locked up, binge-watching Tiger King and Roaring Kitty became the Robin Hood of retail - the guys' influence on the stock market has been absolutely profound. And ever since he led the movement of the historic short squeeze that had Melvin Capital grabbing it’s ankles in insolvency, Roaring Kitty has shown everyone that he has a direct hotline to manipulating prices more than Jane Street and even Citadel for that matter. 

(Source: Giphy) 

And given the fact that Roaring Kitty’s return to his King of the Hill status a few days before GameStop is scheduled to release it’s Q2 earnings is also something to take note of. As we’ve mentioned in previous articles, GameStop is definitely shaking up its business operations for the better. 

For instance, not only are they playing on the nostalgic nature of their consumers (think nerds who eat, breath, and sleep Zelda) as they are opening up “Retro Gaming” stores across the country - but they’ve also freed up any kind of reliance on banking institutions with an ending agreement with the King of Scam itself, Wells Fargo. 

(Source: Market Watch) 

On the surface, this would seem like a pretty stupid decision until you realize that GameStop is actually making more money off its cash holdings than it’s actual business operations at this point. How so, you ask? Well simply put, they are creating shares out of thin air, and selling them for more than they’re worth without paying interest. 

(Source: Giphy) 

Which is why, the news of the closing of its $250 million credit agreement with Wells Fargo also provides an additional dose of investor confidence. Why? Well, because by ending the agreement based on relying on banks to feed the company money, (ultimately paying massive amounts of interest on the debt) this move signifies that it’s solely relying on retail investors to cash in rounds of the meme stock, and institutional investors trying to catch the bandwagon momentum. See: Gamestop taking off its training wheels.

(Source: Giphy) 

Now of course, when it comes to earnings and GameStops outlook in general, the fun police over at Wedbush are still raining on $GME’s parade. The reason is that digital sales and subscription services are lacking on a storefront, which is why they’ve maintained an “underperform” rating on the stock with a price target of $5.60 (indicating a -76.5% downside from current levels). 

(Source: The Street) 

This also follows the overall consensus analyst target of $15.30 representing a -35.98% downside for GameStop over the long haul. 

However, even with all the pessimism from Wall Street, when it comes to Roaring Kitty and his happy little band of trading “regards, memes have proven to be far more powerful than any one analyst reports (besides Hindenburg Research, because… they are bada$$es). 

So in the end, as we await what this week holds for GameStop shares, including it’s earnings results, investors will no doubt be glued to Roaring Kitty’s twitter feed like it’s Sydney Sweeney’s monologue on SNL. Because as we’ve seen, good ole Kitty remains a powerful force that can move the markets faster than Warren Buffett sells Bank of America shares.

But, but, but…

With all of that said, while GameStop is set to be the storied topic of the week, there’s another factor that traders should be aware of. 

You see, next week happens to be the week right before Jerome Powell and his ragtag team of “economists” will discuss rate cuts. Meaning, the volatility, the uncertainty, and explosive price action will be the name of the game in the lead up to the big day on September 17th. And considering that our Stocks.News premium members have seen FOURTEEN triple-digit moves occur since May 23rd of this year (with an additional three popping north of 50%)...

(Source: Giphy) 

We could be looking at a massive, and I mean massive opportunity when it comes to the special trade alert we are sending out to all of our premium members next week.

Could our next alert be another +100% or +300% move in the making? There’s only one way to find out. Which is why I’d highly suggest upgrading your membership to ensure you’re a part of next week’s explosive action…

(Source: Giphy) 

Especially since our last alert last week roared +162% in less than 24 hours! (Which is exactly like turning a nice $1,000 position into $2,620… in just one day). 

Now obviously you can do what you want with that information, but for those of you who smell what I’m steppin in, click this link to join the fun. 

In the meantime, stay safe and stay frosty this Sunday! Until next time… 

Stocks.News holds no positions in companies mentioned in the article.