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Tag: Chewy News

  • Chewy Inc. (CHWY) stock soared in the pre-market trading session: here’s why

    Chewy Inc. (CHWY) stock soared in the pre-market trading session: here’s why

    Chewy Inc (CHWY) stock recently traded at $80.38 which is a 1.94% upward movement. The CHWY stock previously closed at $78.85. In the pre-market trading session, the CHWY stock soared by 10.48% at the time of writing.

    The positive movement in the CHWY stock comes adjacent to the investors reacting on the announcement of the financial report of the Fourth Quarter 2020.

    The highlights of Chewy’s (CHWY) past business activities

    Chewy Inc. (CHWY) is an online retailer specifically for pet food and other pet-related products.  Chewy is based in Florida and was founded in 2011. The sales of the pet food retailer grew since the year 2014 when the sales grew from $205 million to $423 million.  Chewy had been acquired by PetSmart for $3.35 billion. This was at the time, the largest ever acquisition for an e-commerce business. PetSmart has transferred 20% of its ownership that it had in Chewy to its parent company BC Partners – a private equity firm.

    In the year 2017, CHWY stock was doing highly well, with the total revenue of Chewy being around $2 billion and had a market reach of about 51% for online pet food sales in the US. Furthermore, Chewy (CHWY) expanded its portfolio by creating Chewy Pharmacy, which was an innovative pet-specific online pharmacy. There was a team of in-house veterinarians that reviewed and processed the pet-medical orders. In 2019, CHWY sock completed its initial public offering which was very successful, and had earned it an estimate of 1$ billion.

    Reviewing CHWY stock’s fourth-quarter financial report

    Chewy’s financial report on the Q4-Earnings surprised the investors as it announced a 51% sales gain and has topped the $2 billion quarterly revenue mark. The sales for Q4 were reported at $2.04 billion while the analyst expectations were around $1.96-$1.97 billion. CHWY stock had a net income of about $21 million.

    The positivity behind the fourth quarter reported is numerated to a number of reasons. The pandemic was the driver for its online sales, revenue, and as well as online customer base. Chewy saw an increase of 42% in its active customer base year-over-year and now totals at 19.2 million. It customized and improved its CR by launching several marketing initiatives like e-gift cards and telehealth platform that allowed a consulting session with one of their in-house vets. This allowed for 5.7 million additions of net active users in Q4.

    Sumit Sing, CEO of Chewy, announced that the net sales increased by 47% from 2019 to $7.15 billion.  CHWY stock has done well this quarter compared to the last-year quarter where it reported a loss of $60.94 million. Chewy has also reported earnings of $0.05 per share.

    Will the future of CHWY stock’s long-term trend stay consistent?

    Physical retail companies or startups that shifted their whole operation base and business model to online retail during the pandemic mainly saw a rise in their sales and consumer demand. This can be attributed the isolation, stay-at-home and work-from-home trends as well as the convenience of online store shopping that have come to stay in this Covid-era. The main concern that should develop here is, will the market behavior retain the same positive response for online-retail platform in the post Covid era? This question also reflects on the business trends for Chewy (CHWY).

  • Is pandemic favoring the Internet Retail Sector?

    New retail data showed that e-commerce continues to be the most popular form of purchase by consumers. Those statistics triggered a rally on Wednesday for shares of e-commerce companies.

    According to a US Census Bureau report, e-commerce purchases were up 29% in November compared to the same period of the previous year. Retail Metrics analyst Ken Perkins said it represented the biggest monthly increase for e-commerce since 2010 and was the seventh consecutive month of growth exceeding 20%. Shopify Inc. has risen as much as 8.4%, while eBay has risen by 5.4%. Etsy Inc. and Amazon.com Inc. both had gains of at least 2%.

    Perkins wrote in a report that e-commerce is still “dominant in the retail landscape.” He stated that the Centers for Disease Control and Prevention’s recommendation to avoid enclosed shopping areas and the record number of deaths related to Covid-19 have “driven consumers to use contactless payments in record amounts.”

    Jumia Technologies AG (NYSE:JMIA) shares were trading up 8.27% at $39.29 at the time of writing on Wednesday. The company on December 3, 2020 declared the completion of its At The Market offering.

    Jumia Technologies AG (NYSE:JMIA) share price went from a low point around $2.15 to briefly over $40.90 in the past 52 weeks, though shares have since pulled back to $39.29. JMIA market cap has remained high, hitting $3.16B at the time of writing, giving it price-to-sales ratio of more than 10.

    If we look at the recent analyst rating JMIA, Stifel downgraded coverage on JMIA shares with a Hold rating and a $16.71 price target, which implies room for -22.58% downside momentum this year.

    Alibaba Group Holding Limited (BABA) last closed at $261.89, in a 52-week range of $169.95 to $319.32. Analysts have a consensus price target of $338.48.

    eBay Inc. (EBAY) stock soar by 3.01% to $53.65. On December 8, 2020, the company announced that it is introducing a low cost way for sellers to securely ship trading cards. The most recent rating by Piper Sandler, on September 25, 2020, is at an Overweight.

    JD.com Inc. (NASDAQ:JD) Shares headed rising, higher as much as 2.86%. The most recent rating by Barclays, on August 24, 2020, is at an Overweight.

    Vipshop Holdings Limited (NYSE:VIPS) fall -1.16% after losing more than -$0.29 on Wednesday.

    Farfetch Limited (FTCH) last closed at $60.91, in a 52-week range of $5.99 to $61.65. Analysts have a consensus price target of $54.56.

    Chewy Inc. (CHWY) stock soar by 3.28% to $94.12. The most recent rating by Piper Sandler, on November 13, 2020, is at an Overweight. The firm on December 9, 2020 released its financial results for the third quarter of fiscal year 2020 ended November 1, 2020.

    Overstock.com Inc. (NASDAQ:OSTK) Shares headed rising, higher as much as 5.09%. The company declared on December 14, 2020, that it was recently recognized in the seventh annual Loyalty360 Awards for its innovation in technology and for its employee engagement with customers and with associates throughout the company. The most recent rating by Wedbush, on September 16, 2020, is at an Outperform.

    Amazon.com Inc. (NASDAQ:AMZN) rose 2.40% after gaining more than $75.84 on Wednesday. The company today reported that it’s here to help make buying – and returning – even more stress-free and convenient as possible this holiday season.

    Etsy Inc. (ETSY) last closed at $182.34, in a 52-week range of $29.95 to $179.93. Analysts have a consensus price target of $163.29.

    Pinduoduo Inc. (PDD) stock soar by 2.42% to $145.47. On December 15, 2020, the firm reported that it was named a pioneer in digital agriculture at a major conference, with its “cloud agriculture” model recognized as one of the top 10 achievements in digital agriculture in the world. The most recent rating by Nomura, on November 16, 2020, is at a Buy.

    CarParts.com Inc. (NASDAQ:PRTS) Shares headed falling, lower as much as -4.44%. The company recently announced that CEO Lev Peker and CFO/COO David Meniane have been named silver medal winners in the Executive of the Year and Operations Executive of the Year for mid-sized companies categories in the Best in Biz Awards. The most recent rating by ROTH Capital, on September 09, 2020, is at a Buy.

    Dada Nexus Limited (NASDAQ:DADA) rose 4.02% after gaining more than $1.49 on Wednesday. DADA recently announced the launch of “Warm Winter Plan” across China to ensure delivery riders’ safety and health during the winter season.

    Mercurity Fintech Holding Inc. (MFH) last closed at $3.05, in a 52-week range of $1.00 to $5.20. The company on November 27, 2020 declared its unaudited financial results for the third quarter ended September 30, 2020.

    Qurate Retail Inc. (QRTEA) stock soar by 1.35% to $10.52. The company on November 20, 2020 declared special cash dividend of $1.50 per common share and announced commencement of share buyback program. The most recent rating by Citigroup, on December 15, 2020, is at a Neutral.