Chewys Stock Decline: Analyzing Recent Market Trends and Impacts

Online pet care retailer Chewy`s shares dropped 4% as of 1 p.m. EDT on Friday, with a 19% drop since July 16. The decline is attributed to Chewy trading in sympathy with Amazon, which missed sales expectations in the second quarter and predicted weaker-than-expected revenue in the next. The company`s focus on the recession-resilient pet care industry provides valuable protection in times of lower consumer confidence. 78% of Chewy`s sales come from customers using its Autoship subscription, which locks in a critical base of sales. Chewy`s No. 1 ranking on Forrester`s Customer Experience Index and potential for long-term success outweigh today`s pessimism. The Motley Fool Stock Advisor analyst team recently identified the 10 best stocks for investors to buy, but Chewy wasn`t among them.