Chewy had been showing some good trend and support since it had fallen from it’s peak back in February down to May. However recently there was a significant gap down about 14% from a recent earning report. Chewy saw increased in sales per customer, and increase in active customers in the last quarter, but it did not mention active user growth which is a key metric for Chewy.
They mentioned during the earnings call that covid is a risk although Chewy stands to benefit from it as more folks stayed home. Investors are assuming this is a primer for bad news and thus some fear and confusion pushed Chewy down.
Chewy does continue to deliver on growth although it has seen a down trend and a gap down, we are still up 22% in it. I do feel there is still a place for Chewy and it just might not match the big growth that some places expect. We will continue to hold.