Fast MoneyBlog- 9/3/21

On Wednesday, September 1st, Chewy, Inc. (CHWY) released its financial results for Q2 of 2021, which ended on August 1st. The company posted revenue of $2.16 billion, a 26.8% increase year-over-year. Autoship customer sales were $1.51 billion, a year- over-year increase of 30.3%.

Chewy also saw a 21% increase in active customers, closing the the second quarter with 20.1 million customers. In addition, net sales per active customer increased 13%.

So why are Chewy shares dropping since this earnings release? For the same reason that shares of other digital companies are falling.

Here’s the trend we’ve seen over the last 8 months: Companies like Pinterest, Inc. (PINS) and Chewy, Inc. benefited from the Covid lockdown because consumers stuck at home turned to digital outlets. Now that we are coming out of Covid, the rate of digital growth is slowing slightly and more in line with normal pre-Covid growth rates. As a result, many of the digital stocks we have been trading have temporarily declined. That said, I expect to see an increase in both Pinterest and Chewy shares in the middle of Q4.

Part of being successful as a stock market trader is knowing when to be patient and when to take action.

Many of your favorite growth stocks will require patience over the next six weeks.

Stay patient and stay positive!

Tyrone Jackson

The Wealthy Investor