Investors may not know what to make of Chewy (NYSE: CHWY) stock. Although its sales have continued to grow, the stock has experienced declines amid a shrinking customer base and expectations of lower growth in its industry.

Nonetheless, Chewy has built a loyal customer base that spends increasing amounts on their pets. Also, with plans to expand into other markets and businesses, the stock could begin a long-awaited recovery.

Admittedly, Chewy bears can make valid points for their lack of optimism about the stock. The customer base continues to shrink, with the company reporting around 20.1 million active customers at the end of 2023. This is down from 20.4 million in 2022 and 20.7 million the year before.

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Source Fool.com