Keith Gill, the GameStop (GME) trader known as "Roaring Kitty," revealed he has a 6.6% stake in Chewy (CHWY). Mizuho senior analyst David Bellinger joins Market Domination to discuss the move and what it means for the pet supplies retailer.

"We don't think this is an optimal scenario for Chewy shares. Just taking a step back here, this is very much outside of the company's control. Senior management is doing a pretty good job of maintaining and managing the business going forward. But I think these developments that you've got here today, adding a lot of volatility to the stock and from an institutional investor standpoint, I think this could create an impediment to owning shares. You're going to have Chewy now associated with these meme stocks," Bellinger explains.

He explains that Chewy's fundamentals are in a good position, bringing in about $11 billion in annual revenue from 20 million active customers. However, he says one concern is customer acquisitions: "Net active customer growth has stagnated. You've had six quarters in a row now with year-over-year active customer numbers down. That's been the big hesitation for us." He highlights how the current inflationary environment has stalled pet adoptions and pet item sales, slowing Chewy's overall growth.

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This post was written by Melanie Riehl