News

Chewy Stock Faces Challenges

1 Mins read

Chewy (ticker: CHWY), the online pet-supplies retailer, is experiencing a downturn in its stock value, with its ninth decline in 10 trading sessions. Rupesh Parikh, an analyst at Oppenheimer, downgraded the shares of Chewy to Perform from Outperform. Parikh also removed his prior price target of $35.

In morning trading, Chewy’s stock was down 3.2% to $18.82, putting it on track to close at a record low, according to Dow Jones Market Data. The stock has been setting new lows consistently since September 12th.

Parikh highlighted the challenges facing Chewy in a research note, noting recent signs of weakness in the pet food category. He expects a more challenging environment to persist over the coming quarters.

Chewy’s second fiscal quarter results, announced on August 30th, surprisingly showed a profit and higher revenue than expected. However, the number of active users had declined compared to the same period last year. Chief Executive Sumit Singh attributed this decline to consumers opting for lower-priced dry food due to inflation.

Parikh’s concerns are echoed by Evercore ISI analyst Mark Mahaney, who downgraded Chewy to In Line from Outperform and lowered his price target to $35 from $53 following the earnings report. Mahaney expressed concerns about market maturity in the US, intense competition from giants like Amazon and Walmart, and uncertainty surrounding Chewy’s expansion plans in Canada.

While Parikh remains optimistic about Chewy’s longer-term prospects, he awaits definitive signs of progress and a potential reset of market expectations.

Related posts
News

Tron Inc. Debuts on Nasdaq as Justin Sun Rings Opening Bell - TokenPost

1 Mins read
Tron Inc., the largest holder of TRX, has achieved a major milestone by officially listing on the Nasdaq exchange, marking a historic…
News

EFCC Takes Sensitization Campaign On Virtual Assets, Money Laundering To CBN - InfoStride News

2 Mins read
Operatives of the Benin Zonal Directorate of the Economic and Financial Crimes Commission, EFCC, on Thursday, July 24, sensitized officers of Central…
News

Binance's Top Trending Cryptocurrency Picks for Today, July 23, 2025

10 Mins read
Looking for what’s hot in crypto today, July 23, 2025? We’ve got the rundown on the top trending cryptocurrency picks you’ll find…

Leave a Reply

Your email address will not be published. Required fields are marked *

− 1 = 1