Summary
- Chewy is fairly valued, with current prices reflecting significant international expansion potential that’s not yet announced.
- CHWY’s strong growth potential and high loyalty are offset by intensifying competition and risks from controlling shareholder exits.
- Intern…
Summary
- Chewy is fairly valued, with current prices reflecting significant international expansion potential that’s not yet announced.
- CHWY’s strong growth potential and high loyalty are offset by intensifying competition and risks from controlling shareholder exits.
- International expansion, especially through an acquisition, could unlock major upside, but execution and competitive threats from Amazon and Walmart (among others) loom large.
- I remain cautious, as current valuation leaves little margin for error, and downside risk is elevated if CHWY fails to expand beyond North America.
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Introduction & Financials
Chewy (CHWY), the online pet food and supplies retailer, saw a massive jump during the pandemic and stay-at-home hype period that quickly after got back to more realistic levels. Although the stock is in an interesting spot that
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