Stock Market Sell-Off: Is Bark a Buy?
Bark (NYSE: BARK) shouldn't be the dog that it's been. Since going public in late 2020, the direct-to-consumer pet care company has lost 88% of its value even though consumer spending on pets remains resilient to belt tightening.
Although pet ownership dipped a bit during the pandemic -- just 52% of households own one versus 54% in 2018, and most of those pets (69%) are dogs -- spending continues to climb. While we're waiting for the latest data to be published, the American Pet Products Association says $123.6 billion was spent in 2021, a 19% spike from the year before, and there is no sign it won't keep growing.
Even though over two-thirds of U.S. households are cutting back on general expenses, only 15% are reducing what they spend on Fido and Fifi. It's an environment that should see Bark thriving; yet, the market values it at just a fraction of its half a billion dollars in annual sales. So let's take a look at whether this pet-oriented subscription box business is a buy.
Source Fool.com
