What the Smartest Investors Know About Chewy Stock
Pet owners love their pets and increasingly treat them like family members, which is exactly the trend that Chewy (NYSE: CHWY) has been tapping into these days. So far, the story has been about building out the online retailer's business, but it appears that 2022 could be an important turning point for the company. Investors should pay close attention because there's a core customer group that has been instrumental to this success.
Chewy held its initial public offering (IPO) in mid-2019, having been spun off from physical pet store retailer PetSmart, which is a private company. The first year a company is public is often a chaotic one when it comes to its financial statements, so it isn't surprising that Chewy's net income was deeply negative in 2019.
In 2020, the net loss narrowed dramatically and 2021 saw a further, though much less dramatic, narrowing of the red ink. The key focus for the company and investors was the top line, where sales have been growing at a rapid clip. This is not an unusual pattern for a newly public company.
Source Fool.com
