Investors Spit Up Chewy Shares

Shares of online pet retailer Chewy are working on their tenth-straight down week, with shares falling to fresh all-time lows today. ๐Ÿ“‰

Although the company has been expanding into higher-margin businesses like medications, insurance, and advertising, investors are worried about declining margins and activity in its core business. And in the current environment, investors are not looking to buy the dip in growth stocks that are no longer growing (at an “acceptable” rate).

Instead, they’re looking for other opportunities to play catch up as we head into year-end with the major stock market indices all up big in 2023โ€”nothing like a little career risk to force short-term portfolio decisions. We’re not saying it’s right, but explaining why you own a stock that’s down 50% YTD is challenging in this environment if you’re a portfolio manager or analyst. ๐Ÿคท

Shares of $CHWY were up nearly 250% from their IPO price at their 2021 peak but hit a new low return of -45% today. What will be the catalyst for this stock’s turnaround remains unclear, but for now, another private market unicorn is being vomited up by the public markets. ๐Ÿคฎ

Transportation Stocks Making Moves

Transportation stocks are often on the move, but today, they were especially frisky. So, let’s recap some of the biggest movers from the day. ๐Ÿ‘‡

First up is electric vehicle (EV) maker Rivian Automotive, which fell 23% to 3-month lows. Although the company expects third-quarter revenue to align with Wall Street expectations of $1.29 to $1.33 billion, it surprised investors with a plan to offer $1.5 billion in convertible notes.ย 

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Siemens Seeks Support

Roughly four months after we last discussed Siemens Energy, the company is back in the news. ๐Ÿ“ฐ

Before getting into today’s news, the energy giant made headlines in June after scrapping its profit forecast and warning that major setbacks at its wind turbine subsidiary (Siemens Gamesa) could last years. That sent shares tumbling 37% in about two days, also pressuring Siemens AG, which owns about 35% of the company.

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More Automotive Antics

News drove several auto stocks today, so let’s review. ๐Ÿ‘‡

First, let’s start with GM-owned Cruise, which is experiencing a lot of trouble in the autonomous driving market. The California Department of Motor Vehicles (DMV) recently suspended its driverless permits over several issues. That caused the company to suspend all driverless taxi operations and pause production of its vehicles. ๐Ÿ›‘

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AMC’s Taylor Swift Boost

Taylor Swift and her “Swifties” are having their time in the sun, bringing rays wherever they go. ๐ŸŒž

While the NFL is looking to take advantage of Swift’s new potential romance, movie theatre chain AMC also wants to get in on the action, and so far, it appears to be working.

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