$CHWY Stock Update

Chewy was a recent purchase for us, and we are in not a bad place for the buy price although it fell a bit more after our initial purchase. Chewy had showed 47% net sales growth in second quarter results, which was unsurprising to investors as the company has been growing strongly for a while, so even though that is awesome growth, one could say it’s “priced in”.

Chewy does have plans to eventually launch a marketplace of pet-related services, which should help overcome some of the already expected growth investors have. Until that happens though, it’s likely it will just grow at a modest rate without much spikes, unless a large unexpected sales growth comes up.

Recommend hold.

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