Chewy Shares Surge On Wednesday: What You Need To Know

Chewy, Inc. CHWY shares are trading higher in response to Petco Health and Wellness Inc‘s WOOF second-quarter financial results. Petco’s earnings report, which showed quarterly sales of $1.52 billion, met analyst estimates, although the company missed its earnings target with losses of nine cents per share compared to the expected 2 cents.

What To Know: Petco's consumables and services segments showed growth, with a 1.5% and 3.1% year-over-year increase, respectively, but these gains were offset by a 4.7% decline in its supplies and companion animal business. Despite these mixed results, the market responded positively, pushing Petco stock up 7.72% during Tuesday's session, and Chewy appeared to benefit from this momentum as a peer in the pet care sector.

The surge in Petco's stock continued into Wednesday, fueled by an unexpected catalyst: the involvement of Keith Gill, known as “Roaring Kitty.” By midday, the stock had soared nearly 35% after Gill posted a cryptic message on Reddit, igniting excitement in the meme stock community.

What Else: Roaring Kitty, also famously associated with the GameStop trading frenzy, posted a cryptic image from “Toy Story,” speculated to reference Chewy stock, in which Keith Gill previously held a large position.

CHWY Price Action: Chewy shares closed 8.12% higher at $30.24 on Wednesday, according to Benzinga pro.

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