Fast Money Blog- 4/1/22

This week on Wall Street, stocks continued to retrace, which is great for long-term shareholders.

On Tuesday, March 29th, Chewy, Inc. (CHWY) released their Q4 2021 earnings. The company reported revenue of $2.39 billion, a 17% increase year-over-year. Net sales per active customer were $430, up 15.6% year-over-year.

For the full year, Chewy had revenue of $8.9 billion, up 24% from the prior full year. They also added 1.5 million active customers in 2021 to end the year with 20.7 million active customers, an increase of 8%.

Here’s why Wall Street is not happy with Chewy’s earnings:

Even though they reported a 17% increase in revenue year-over-year, they reported a net loss of $63.6 million in their fiscal forth quarter compared to net income of $21 million in the same quarter last year.

Here’s my take on Chewy:

Chewy looks like it fits the profile of a long-term hold and a take-over candidate. As an experienced investor when I see explosive user growth and high net-losses it’s usually bought out by a larger, publicly traded company.

If you are holding Chewy shares you need to stay patient for the next 2 to 3 years, as I see the stock rising during this period.

Stay Open! Stay Positive!

Tyrone Jackson

The Wealthy Investor