Who the fuck doesn’t love dogs?
Seriously, if you are cat person leave this post now. However, if you like Tendies and legit double D’s then sit down for a minute. I have been following all of you retards for a while now and I’ve been in the markets for over a decade. Some of you are straight up retarded, other times I see legit DD that gives me a red rocket. This one has me rock hard, so don’t piss all over CHWY.
Chewy sells mostly pet food and pet products through an online subscription model. 69% of their revenue is generated form auto-ship orders.
Q1 results: 1. 31% YOY increase in active customers 2. 8.7% increase in net sales per customer 3. Autoship sales up 34% YOY 4. Gross profit increased 55% 5. Gross margin up 420 bps to 27.6%
Just do the math, if 69% of your revenue is coming from credit cards that get automatically billed every month and you’re adding customers faster than you can get your leg humped, it’s a no brainer.
Clearly an upside down red rocked ready to splurge. More like a green rocket. So why dip your paws in on this growing stonk? Look at the stock price this year. The fucker is down nearly 9% YTD as of today, hovering around $80 a share and plummeting from an all time high near $120 a share in February. CHWY has been hammered like a Great Dane going to town on a chiwawa since tech stocks took a hit earlier this year. Dumbass analysts think a return to normal in retail is a bad thing for CHWY but they fail to realize how loyal of a customer base they have. CHWY even raised their guidance in Q2 but the stock is still being held down. Idiots.
There’s never been a better time to slide into your dog’s DM’s than this one. Even with a strong economic recovery, that’s bound to only help CHWY continue to grow. The more you look, the more reasons you find to buy.
I’m not a dog and I’m also not your personal financial professional either. Do your own DD retards. I just like dogs and Tendies, which is why I’m holding 124 shares of this red rocket ship.
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June 24, 2021 at 11:49AM