Why Chewy Stock Was Up 12% in October
Shares of pet-goods e-commerce company Chewy (NYSE: CHWY) rose by 12.3% in October, according to data provided by S&P Global Market Intelligence, in contrast to the S&P 500 index, which fell by almost 3%. The stock gained ground steadily throughout the month before receiving an outsize boost late after it announced a new telehealth service for pets on Oct. 28. However, it then gave back some of its gains, possibly because of uncertainty related to the company's relationship with PetSmart.
The COVID-19 pandemic has driven a large share of retail sales out of brick-and-mortar stores and into e-commerce channels, and pure-play online sellers like Chewy have benefited. Investors naturally have taken note of the trend. But the company attracted even more bulls after it announced that it would be rolling out its Connect With A Vet program across the country. Though it's available only to customers enrolled in Chewy's auto-ship program, the telehealth service is free, and addresses one of the challenges presented by physical-distancing guidelines. Investors responded by sending the stock higher.
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Source Fool.com
