More Than a Meme Stock? Chewy's Strong Fundamentals and Buybacks Signal Upside Potential.

Core Viewpoint - Chewy is a growing online pet product retailer that should be evaluated based on its fundamental business performance rather than the hype surrounding meme stocks and potential short squeezes [5][11][15]. Group 1: Company Performance - Chewy reported adjusted diluted earnings of 31 cents per share in Q1 of FY2024, a 55% increase from 20 cents in the same quarter the previous year [8][20]. - The company's net sales increased by 3.1% year over year, reaching $2.88 billion in the first quarter of fiscal 2024 [14]. - Chewy has agreed to repurchase 17,550,000 shares from Buddy Chester Sub LLC, which will be canceled and retired upon completion of the repurchase [7][19]. Group 2: Investment Considerations - Investors should focus on Chewy's business fundamentals rather than following trends set by meme-stock celebrities [2][11][15]. - The excitement around short squeezes may distract from the company's actual performance and growth potential [11][15]. - Despite the hype, Chewy's stock price fell by 6.6% on the day Keith Gill disclosed his stake in the company, indicating that celebrity endorsements do not guarantee stock performance [6][12].