Chewy(US:CHWY) Benzinga·2026-01-06 17:55Core Viewpoint - Viking Global Investors has significantly increased its stake in Chewy Inc, indicating strong conviction in the company's long-term potential despite recent stock struggles [1][2][4]. Group 1: Investment Activity - Viking boosted its stake in Chewy by nearly 147% on December 18, 2025, adding over 8 million shares, bringing total ownership to approximately 13.5 million shares valued at around $437 million [2]. - This position represents just over 1% of Viking's portfolio, highlighting the scale of the investment amid Chewy's recent stock performance [2]. Group 2: Company Performance - Chewy's shares have faced challenges, down double digits over the past year and trading closer to their 52-week lows, which typically raises concerns for many investors [3]. - However, for long-term investors like Viking, this decline may present an entry point due to the perceived disconnect between Chewy's stock price and its core business durability [4]. Group 3: Business Model and Market Sentiment - Chewy's subscription-heavy revenue model and its strong position in pet e-commerce contribute to predictable demand, appealing to funds willing to overlook short-term challenges [5]. - Viking's average buy price is above current levels, suggesting a long-term investment strategy rather than a quick trade, with expectations for stabilization in fundamentals and sentiment improvement [5]. Group 4: Market Confidence - Viking's aggressive accumulation of Chewy shares signals a belief that the downside risk for the stock may be limited at current levels [7]. - This investment narrative positions Chewy as a smart-money accumulation story, emphasizing the importance of patience over short-term market movements [7].