What Happened:
Shares of e-commerce pet food and supplies retailer Chewy (NYSE:CHWY) jumped 17.9% in the afternoon session after the company reported second-quarter earnings results, with revenue, active customers, and EPS exceeding Wall Street's expectations. In addition, its EBITDA margin increased year on year, and free cash flow improved. Improved monetization also played a role in the results, as net sales per active customer clocked in at a record $565. Overall, this was an impressive quarter for the company.
Is now the time to buy Chewy? Access our full analysis report here, it’s free.
What is the market telling us:
Chewy’s shares are very volatile and over the last year have had 37 moves greater than 5%. But moves this big are very rare even for Chewy and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Chewy is up 32.8% since the beginning of the year, and at $29.75 per share it is trading close to its 52-week high of $29.99 from June 2024. Investors who bought $1,000 worth of Chewy’s shares 5 years ago would now be looking at an investment worth $979.11.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.