Why Are Chewy (CHWY) Shares Soaring Today

What Happened?

Shares of e-commerce pet food and supplies retailer Chewy (NYSE:CHWY) jumped 5.6% in the afternoon session after the stock's positive momentum continued as hedge fund Viking Global Investors increased its position in the company, signaling strong conviction in its long-term potential. The investment firm boosted its stake in Chewy by nearly 147%, adding over 8 million shares. This move brought its total ownership to approximately 13.5 million shares, with a value of around $437 million. The significant increase in the stake suggested that Viking saw a disconnect between Chewy's current stock price and the durability of its core business model. The fund's action highlighted a particular belief in the strength of the company's subscription-heavy revenue stream as it navigated recent challenges.

The shares closed the day at $34.00, up 6.2% from previous close.

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What Is The Market Telling Us

Chewy’s shares are somewhat volatile and have had 10 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 biggest move we wrote about over the last year was 4 months ago when the stock dropped 15.8% on the news that its second-quarter financial results failed to impress investors, despite largely meeting Wall Street's forecasts. Chewy reported adjusted earnings of $0.33 per share, which was in line with analyst estimates, and net sales of $3.10 billion, representing a slight beat on expectations and an 8.6% increase year-over-year. The sharp negative reaction in the stock price suggests that the solid, but not spectacular, results were insufficient to meet higher investor expectations. With key metrics only meeting, rather than substantially beating, forecasts, it appears the market was looking for a stronger performance to push the stock higher.

Chewy is flat since the beginning of the year, and at $33.77 per share, it is trading 30% 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 $324.20.

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