Chewy (CHWY) Stock Forecast & Price Target

Chewy has demonstrated a strong growth trajectory, with active customer counts increasing by 0.8% quarter-over-quarter for the second consecutive quarter and net additions exceeding 160,000. The company's engaged traffic showed significant year-over-year increases, with a 12% rise in November, followed by 29% in December and 20% in January, reflecting robust customer engagement and potential for ongoing sales growth. With projected revenue growth of 7% for 2025, coupled with favorable cohort dynamics and effective marketing strategies, Chewy is well-positioned to capture a larger share of the e-commerce petcare market.

The financial analysis of Chewy indicates several concerning trends contributing to a negative outlook for the company's stock. Supply chain volatility has been highlighted as a significant risk factor that could lead to both missed revenue opportunities and pressure on gross margins, compounding the challenges faced by the retailer. Additionally, year-over-year engagement metrics have shown a decline, with search interest decreasing by 5% in December and continuing to worsen in January and February, resulting in a broader slowdown in customer traffic and potential long-term impacts on top-line growth.