Invest in Petco instead of Chewy, says Jim Cramer

Invest in Petco instead of Chewy, says Jim Cramer


CNBC’s Jim Cramer said Wednesday that investors should buy stock of Petco instead of Chewy after the latter reported a disappointing quarter on Tuesday.

“If [Chewy] aren’t turning a profit yet after all these years, I find it impossible to recommend their stock in this environment. If you want to play the humanization of pets, I’d much rather buy the stock of Petco, which has the added advantage of making a lot of money,” the “Mad Money” host said.

Chewy reported a worse-than-expected quarterly loss and revenue on Tuesday, as well as weak revenue guidance for the first quarter and full year. The online pet product retailers’ stock dropped in after-hours trading the same day and was down 16.1% on Wednesday.

Petco stock was down 3.76% on Wednesday. The company earlier this month reported better-than-expected top and bottom lines in the fourth quarter as well as a rosy 2022 revenue guidance.

Cramer posited that Chewy’s poor performance could be due to consumers’ desire for human interaction since staying inside due to Covid. Another reason he prefers Petco to Chewy is that the former offers in-person veterinary services for pets, he added.

Petco has said it plans to grow its roster of full-service veterinary hospitals to 900 from the nearly 200 it had at the end of its fiscal year. Chewy launched virtual veterinary visits for pets in October 2020.

“There’s nothing like going to the store and meeting the vet while you get whatever else you need for your pets, including more pets,” Cramer said.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]





Source

This is why Jamie Dimon is so gloomy on the economy
Business

This is why Jamie Dimon is so gloomy on the economy

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The more Jamie Dimon worries, the better his bank seems to do. As JPMorgan […]

Read More
Summer rentals in the Hamptons are down 30%
Business

Summer rentals in the Hamptons are down 30%

Key Points Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out […]

Read More
Costco tops earnings and revenue estimates as sales jump 8%
Business

Costco tops earnings and revenue estimates as sales jump 8%

The sign on the side of a Costco is seen in Hawthorne, California, on April 4, 2025. Jay L Clendenin | Getty Images Shares of Costco fell slightly on Thursday, despite the warehouse club posting quarterly earnings and revenue that topped estimates and reporting 8% year-over-year sales gains. Here’s how the warehouse club retailer did […]

Read More