Why Chewy (CHWY) Stock Is Up Today

What Happened?

Shares of e-commerce pet food and supplies retailer Chewy (NYSE:CHWY) jumped 2.8% in the afternoon session after the stock extended its positive momentum as Piper Sandler reiterated its "Overweight" rating and $48.00 price target on the company. 

The move comes after the stock plunged last week following its earnings report, a sell-off that some now view as an overreaction. Piper Sandler's confidence is based on Chewy's second-quarter performance, where it surpassed expectations for new customer growth, sales, and gross margin. The firm highlighted Chewy's strategic investments in its new Chewy+ membership program and a proprietary fresh and frozen dog food line called Get Real, both aimed at accelerating market share gains. Other potential growth drivers noted by the firm include the expansion of Chewy Vet Care practices and the company's recent entry into the Canadian market, reinforcing a positive outlook despite the initial negative market reaction to its earnings.

After the initial pop the shares cooled down to $37.97, up 2.8% from previous close.

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What Is The Market Telling Us

Chewy’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 24 hours ago when the stock gained 5.9% on the news that Piper Sandler reiterated its "Overweight" rating and $48.00 price target on the company. The investment firm's confidence follows the pet retailer's second-quarter 2025 performance, where it surpassed expectations for new customer growth, sales, and gross margin. Piper Sandler highlighted that Chewy is making strategic investments in its new Chewy+ membership program and a proprietary fresh and frozen dog food line called Get Real, both aimed at accelerating market share gains. The firm also pointed to several other growth drivers, including the stabilization of the pet industry, the expansion of Chewy Vet Care practices, its recent entry into the Canadian market, and potential for future pricing adjustments.

Chewy is up 12.1% since the beginning of the year, but at $37.97 per share, it is still trading 21.2% below its 52-week high of $48.21 from June 2025. Investors who bought $1,000 worth of Chewy’s shares 5 years ago would now be looking at an investment worth $676.16.

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