In spite of some well-earned skepticism, Chewy.com has not precisely charted the course of its predecessors, infamous Internet bubble disaster Pets.com. A year after its initial public offering, Pets.com had been dead for three months, its very name sold off to the same company that went on to create Chewy, PetSmart. A year after its initial public offering, Chewy has more than doubled in value and is rolling in revenue from all of those people who thought adopting a pet in the middle of a pandemic was a good idea.

All in all, well done, Chewy. And now for some well-earned skepticism.

High growth expectations were probably already baked in: Chewy’s stock was already up more than 77% this year. The company also gave somewhat tepid sales guidance for the present quarter, implying flat sales to just 1.2% growth sequentially….

The company said it was able to spend less, partly because it saw a lot of organic traffic to its website. However, it expects these costs to increase over the rest of the year as it plans to ramp up marketing.

A lot of the gains were specific to the peak pandemic months. Pet foster and adoption numbers were 60% higher in March and April compared with the previous years, Chewy’s chief executive said during the earnings call late Tuesday…. By May, however, the pace of pet adoption had reverted back to pre-pandemic levels.

Chewy Stock May Be Overfed [WSJ]

Related

Screen Shot 2019-07-25 at 4.54.53 PM

David Einhorn Steals Our Joke In Q2 Investor Letter

Yeah, Chewy IS a lot like Pets.com, David, where have we heard THAT before?

airbnb

Airbnb Has Definitely Recovered From Coronavirus

Its antibodies are all over this IPO filing.

dumpster fire ornament

Worst Year In At Least A Century No Reason Not To Go Public

The SPAC-and-IPO party on Wall Street will have to stand in for the traditional holiday festivities this year.

david perdue

Next SEC Chair Could Save Kelly Loeffler, David Perdue From Themselves

That is, if they’re still in a position to enjoy political salvation after today.

Photo: Bob Riha Jr/Getty Images

Be Very Grateful Bill Gross Is Not Your Father

The dethroned Bond King isn’t interested in reconciling with his estranged son, apparently.

Chewy IPO

Online Pet Food Company Looking To IPO At $7 Billion In 2019 Because We've All Learned Literally Nothing

On the bright side, Chewy.com isn't profitable and is planning on doing a dual share structure to keep it that way.

Goldman Sachs Dress Code

The Part Of Goldman Sachs David Solomon Is Getting Rid Of Posts Record Quarter

You won’t need to worry about profits doubling once Marcus is in charge.