Why Chewy, Pinterest, and Etsy Were Plunging Today
Shares of e-commerce names Chewy (NYSE: CHWY), Pinterest (NYSE: PINS), and Etsy (NASDAQ: ETSY) were falling hard on Tuesday to start the year, down 5.5%, 4.9%, and 6.3%, respectively, as of 12:30 p.m. ET.
There wasn't much in the way of company-specific news today, so the sell-off looks to be sector-based. All three of these stocks trade at either high multiples of their earnings or aren't profitable at all, and those types of stocks are having a difficult time in the new world of higher interest rates.
Furthermore, investors appear to be anticipating an economic downturn or recession as a result of those very interest rate hikes, and some commentary from economists and Federal Reserve officials over the holiday and today fed those very fears.
Source Fool.com
