Why Chewy Stock Is Falling Today
Shares of Chewy (NYSE: CHWY), the online pet products company, were heading lower today. It was one of several e-commerce stocks to take a dive after Walmart slashed its guidance for the quarter, and Shopify, the leading e-commerce software company, said it would lay off 10% of its staff, a reflection of the post-pandemic hangover in e-commerce.
Separately, Wedbush also lowered its rating on Chewy on valuation concerns. As of 11:57 a.m. ET on Tuesday, the stock was down 8.2%.
With the Nasdaq down nearly 2% at noon today, tech stocks and e-commerce stocks were falling broadly in response to the announcements from Walmart and Shopify. Walmart actually raised is comparable-store sales forecast for the second quarter, but slashed its profit guidance as it said higher prices for food and fuel were cutting into budgets for general merchandise like apparel.
Source Fool.com
