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- Chewy's Defensive Business Model: Chewy (CHWY) trades at a forward P/E of 15.5, and despite pressures from rising oil prices, its focus on pet food positions it well for recession resilience, likely maintaining stable revenue growth as consumers continue to prioritize pet care.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty (ELF) trades at just over 15 times forward P/E, and despite challenges from consumer spending weakness, its market share in cosmetics is expanding, particularly through the acquisition of the Rhode brand, which is expected to drive future sales growth.
- Pinterest's Transformation Opportunity: Pinterest (PINS) trades at a forward P/E of 10, with a 16% revenue growth last year, and its strategic shift to a shopping discovery platform is proving effective, as evidenced by a 12% user growth, particularly in international markets.
- Support from Activist Investors: Pinterest is backed by activist investor Elliott Investment Management, which injected $1 billion for stock buybacks, presenting a compelling buying opportunity for investors during this price dip, with expectations of enhanced shareholder value.
- Chewy's Defensive Business Model: Chewy trades at a forward P/E of 15.5 times, and despite pressures from rising oil prices, its pet food-centric business model positions it well for recession resilience, with an expected annual growth rate of 8.3%, enhancing its market competitiveness.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty has a forward P/E slightly above 15 times, and despite challenges from consumer spending weakness, its acquisition of the Rhode brand is expected to drive future sales growth, with Rhode achieving over $200 million in sales within three years, indicating substantial market potential.
- Pinterest's Transformation and Investment Backing: Pinterest's forward P/E is just 10 times, with a 16% revenue growth last year, and under the support of Elliott Investment Management, Pinterest is transforming into a shopping discovery platform, achieving a 12% user growth, laying a foundation for future profitability.
- Investment Opportunities Amid Market Uncertainty: Despite market turbulence due to the Iran war and rising oil prices, investing during uncertainty is seen as an opportunity, with Chewy, e.l.f. Beauty, and Pinterest being undervalued stocks worth considering for diversified investment.
- Acquisition of Modern Animal: Chewy (CHWY) has agreed to acquire Modern Animal to accelerate its clinical expansion and evolve into a fully integrated pet healthcare ecosystem, expected to add over $125 million in annualized revenue, significantly enhancing its market competitiveness.
- Store Expansion: This acquisition will scale Chewy Vet Care's footprint from 18 to 47 locations, with expectations of achieving EBITDA-dollar neutrality by 2026, thereby strengthening the company's presence in the pet healthcare market.
- Customer Sales Growth: The integration of Modern Animal is projected to drive a 15% to 20% increase in net sales per active customer, further boosting Chewy's revenue growth and customer loyalty in the pet healthcare sector.
- Share Repurchase Program: Chewy also announced a $500 million increase to its existing share repurchase program, reflecting confidence in the company's long-term strategy and strong free cash flow generation, demonstrating a disciplined approach to capital allocation.
- Chewy's Stock Performance: Chewy's shares have increased by 1.9% following the acquisition of Modern Animal.
- Acquisition Details: The acquisition of Modern Animal is expected to enhance Chewy's offerings in the pet care market.

Chewy's Acquisition: Chewy has acquired Modern Animal, a veterinary care company, to enhance its offerings in the pet health sector.
Integrated Health Care Ecosystem: The acquisition aims to create a fully integrated health care ecosystem for pets, combining retail and veterinary services.
- Earnings Beat: Chewy reported Q4 earnings that exceeded market expectations, indicating ongoing growth potential in the pet supplies market, although specific figures were not disclosed.
- Analyst Target Cuts: Analysts from BNP Paribas and Citizens have lowered their price targets for Chewy's stock, reflecting a cautious market outlook on the company's future growth, which may impact investor confidence.
- Stock Momentum Decline: Despite the earnings beat, Chewy's stock momentum has dipped, indicating market concerns about the company's future performance, potentially leading to short-term selling pressure from investors.
- Market Reaction Analysis: The combination of analyst target cuts and declining stock momentum could negatively affect Chewy's market performance, prompting investors to closely monitor the company's future strategic adjustments and market responses.










