Chewy, Inc. (CHWY-N)

This online pet food store sold off last week and that was a mistake. Even after Covid, pets are highly desirable. This stock peaked during Covid (after the company went public in mid-2019) and got a boost from the meme stock traders. It bottomed above $20 last May, but has rebounded 103% since at one point. Their active customer base roughly doubled before and during Covid and sales exploded. In 2021, 70% of its sales automatically renewed, so there's hope that Chewy can endure after Covid. But the stock became overvalued last year and the market turned against pandemic plays. He likes it now, because they have pivoted to profitability. At early June they reported a better than expected quarter and a profit (expectations were very low though). Last Thursday's report beat the number of active customers and sales (up 14.5% YOY) and raised their full-year margin forecast. Chewy isn't cheap, but if they keep putting up great numbers, then this is a winner.

They just reported. He's long Chewy. People won't stop feeding their pets post-Covid. Chewy will break above $100 again, sooner than later.

People bought pets during the pandemic and they need to continue to feed those pets. With more pet owners, sales and revenues for CHWY will keep increasing. He continues to be long this.

Buy at $74? Yes! Their business is auto renewal which is the most profitable business in the world today.

A high multiple earnings stock that will come down. He likes their business a lot, but expect pain if you buy it now. It sells pet food online.