GameStop's Ryan Cohen potential purchase of Chewy stock could create short squeeze.

From Investing.com: 2024-07-01 17:17:49

Speculators were buzzing over the possibility of GameStop’s Ryan Cohen buying Chewy stock prior to Keith Gill’s stake disclosure. GameStop has raised over $3 billion since May and has an investment policy allowing equity investments. Cohen, Chewy’s former CEO, knows the company well and could potentially create a short squeeze.

BC Partners, the majority owner of Chewy, could block Cohen’s potential purchase through GameStop. Analysts warn of looming volatility in Chewy’s stock. The company recently saw an increase in profits and free cash flow, but high short interest persists. Only about one-third of Chewy’s outstanding shares are available for trading.



Read more at Investing.com: Could Chewy pick up a second meme stock pied piper? By Investing.com