Chewy Meme Stock: Is It a Smart Investment or a Fad?

Chewy meme stock has been making waves in the market, but is it a smart investment or a fad? The company's market value skyrocketed from $3.2 billion to $25 billion in just a few years, with its stock price increasing by as much as 1,000% in a short period.

This rapid growth is largely attributed to the company's strong e-commerce platform, which has enabled it to disrupt the traditional pet supply industry. Chewy's online platform has made it easy for pet owners to shop for their pets' needs, resulting in a significant increase in sales.

However, some investors are skeptical about the sustainability of Chewy's growth, citing concerns about the company's profitability and competition from other e-commerce players.

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Chewy's revenue rose 2.6% in its most recent quarter, topping Wall Street earnings expectations.

Shares of Chewy are up almost 13% this year, which is a notable improvement compared to the Dow Jones Industrial Average.

Industry analysts have been raising their projections for Chewy’s profits, which is a sign of confidence in the company's growth potential.

Most analysts see sales growth accelerating next year, which could lead to even more impressive gains for Chewy's investors.

Joining in on a meme stock like Trump Media can be a wild ride. Shares jumped 4% on Monday and 8% on Tuesday, only to plunge more than 20% on Wednesday.

The stock's volatility is a major concern. It tumbled every week over a seven-week stretch from late July to early September.

Shares in Trump Media are up 130% this year, but that's largely tied to the ups and downs of the former president's campaign.

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Investors can use these transcripts to make informed investment decisions, but they're not the only ones who can benefit from this information.

Chewy's stock has been on a roll, with shares up almost 13% this year. That's a pretty impressive gain, especially when you consider the Dow Jones Industrial Average hasn't done as well.

Industry analysts are actually raising their projections for Chewy's profits, which is a good sign for investors. They see sales growth accelerating next year, which could lead to even more gains.

Chewy agreed to repurchase 17,550,000 of its common-stock shares from Buddy Chester Sub LLC.

This is good news because the repurchased shares will be canceled and retired upon completion of the repurchase.

The company's board of directors approved a $500 million share-repurchase program.

This program will help reduce the supply of Chewy shares, making each share more valuable in the long run.

Chewy's net sales increased 3.1% year over year to $2.88 billion in fiscal 2024's first quarter.

In Q1 of FY2024, Chewy reported adjusted diluted earnings of 31 cents per share, a 55% year-over-year growth.

That's a significant earnings growth, and it's a testament to Chewy's ability to generate revenue and profits.

Chewy is a sales and earnings grower that evidently likes to buy back its own stock shares.

The company agreed to repurchase 17,550,000 of its common-stock shares from Buddy Chester Sub LLC.

Chewy's board of directors approved a $500 million share-repurchase program.

Repurchased shares will be canceled and retired upon completion of the repurchase, which could make each share more valuable in the long run.

The company's net sales increased 3.1% year over year to $2.88 billion in fiscal 2024's first quarter.

Adjusted diluted earnings of 31 cents per share were reported in Q1 of FY2024, versus 20 cents the year-earlier quarter.

That's earnings growth of 55% year over year, not too shabby at all.

Chewy shares took a wild ride after Keith Gill, aka Roaring Kitty, revealed he had bought up shares in the company.

Gill's significant stake in Chewy, worth approximately $245 million, or about 6.6% of the entire company, was disclosed in an SEC filing on Monday.

Chewy shares initially jumped 11% but have since turned negative, trading down 6% midday Monday.

Gill's online post, simply a dog emoji, foreshadowed his Chewy holdings and sparked a rally in the stock.

The price of GameStop shares, where Gill has been involved in a "pump and dump" scheme, remains higher than before Gill's post but has declined from its peak by about 50%.

GameStop shares were down 5% in Monday trading.

Chewy almost gained meme status this week after Keith Gill posted a picture of a dog, and shares jumped as much as 10.6% mostly on Thursday.

Gill's trading has been the subject of scrutiny, and he now faces a new class-action lawsuit filed in Brooklyn alleging a "pump and dump" scheme.

Ryan Cohen, who also co-founded Chewy, helped fuel the meme-stock wave after revealing he had taken a large position in GameStop in 2020.

Cohen is no longer affiliated with Chewy management, and it is not clear whether he and Gill have any relationship.

Gill's stake in Chewy is a significant one, making up about 6.6% of the entire company at Friday's closing price.

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