If the market tide takes a long-term turn for the better, consumers' unwavering love for their pets will put Chewy stock back in the bullish spotlight.
The markets have given investors a wild ride over the last three years, and that has resulted in several promising companies selling at deeply discounted prices. High inflation and lower consumer spending have pressured these companies' revenue growth and scared away many short-term traders. After launching in 2011, Chewy quickly scaled into a large business with over $10 billion in annual revenue.
2023 has been a tough year for Chewy (NYSE: CHWY) shareholders, who have seen the stock drop 52% year to date while the S&P 500 is up 12%. Peers such as Petco have seen similar slumps and are warning about more cautious consumer spending patterns. With that in mind, let's look at where Chewy could be headed over the next several years.