Here's Why Chewy Stock Jumped 11% in November
Shares of Chewy (NYSE: CHWY) jumped 11.4% in November, according to data provided by S&P Global Market Intelligence. While that's a good gain for a single month, this return barely outperformed the 5% return for the S&P 500. But that's to be expected, considering Chewy didn't have any news to report.
For more context, Chewy stock was up about 35% in just two days -- Nov. 10 and 11. On Nov. 10, stocks soared after inflation data surprised the market. Consumer prices were only up 7.7% in October, compared with peak inflation of 9.1% in June. And with the rate of inflation coming down, stocks like Chewy skyrocketed.
Here's the relation between inflation and Chewy stock: Inflation is hurting consumers. As CEO Sumit Singh said, "Accelerating inflation placed incremental pressure on an already stressed consumer."
Source Fool.com
