Why Did GRAB, NCLH, CHWY Stocks Fall To 52-Week Lows Last Week?

• GRAB closed down 0.6% on Friday, falling to $3.46 in intraday trading as it extended a six-day decline.
• NCLH fell to a 52-week low of $15.45 amid weaker bookings and pressure from a recent hantavirus outbreak that has raised global health concerns.
• CHWY slipped to $21.16 amid ongoing weakness and also received a target cut from Citi.

Grab Holdings Limited (GRAB), Norwegian Cruise Line Holdings Ltd. (NCLH), and Chewy Inc. (CHWY) fell to fresh 52-week lows on Friday as investors dumped consumer and travel-related stocks amid growing concerns over slowing demand, Wall Street caution, and mounting macroeconomic pressure from rising inflation.

GRAB closed down 0.6% on Friday, while NCLH fell more than 2.5% at close and CHWY closed 0.9% lower.

Grab Declines On Inflation, Oil Price Concerns

Shares of the ride-hailing and food delivery services company extended a six-day decline, falling to a fresh 52-week low of $3.46, underscoring the challenges it has been facing as it navigates tight market conditions and waning investor sentiment.

Despite clocking a growth of 24% in quarterly revenue and record profitability in its first-quarter (Q1) results posted earlier this month, investor concerns around inflation and rising oil prices weighed heavily on the stock.

The Southeast Asian company’s ride-hailing and delivery businesses are heavily impacted by oil prices and consumer spending, both of which are moving in the wrong direction for the company. Separately, hedge fund Tiger Global Management disclosed that it had exited its Grab position last quarter, according to TheFly, adding another layer of pressure on the stock.

GRAB shares have declined more than 30% so far this year. On Stocktwits, retail sentiment around the company was in the ‘bearish’ territory amid ‘low’ message volumes at the time of writing.

Norwegian Cruise Line Struggles Amid Macro Headwinds

Shares of global cruise operator Norwegian Cruise Line also fell amid rising fuel costs and high debt levels that weighed heavily on demand and profit. NCLH stock fell to a 52-week low of $15.45 on Friday, extending its decline for two consecutive weeks.

The company is also struggling with weaker bookings amid rising geopolitical tensions, and pressure from a recent hantavirus outbreak that has raised global health concerns.

Meanwhile, last week, TD Cowen analyst Kevin Kopelman cut the price target on the company to $22 from $27, while maintaining a ‘Buy’ rating on the shares, as per TheFly.

NCLH shares have declined more than 31% so far this year, but retail sentiment around the company on Stocktwits continues to stay in the ‘bullish’ territory.

Chewy Gets Price Target Cut

Shares of the American pet retailer have been pressured by broader sectoral weakness as consumer discretionary companies have been trending lower amid softening demand and persistent inflationary concerns. The stock slipped to a fresh 52-week low of $21.16 on Friday, extending a fourth week of declines.

The company also received a target cut from Citi, which lowered its price target on Chewy to $37 from $40, although keeping a ‘Buy’ rating on the shares. The analyst said that it had adjusted targets in broadlines and hardlines retailing as part of a first-quarter preview, as per TheFly.

CHWY stock has declined more than 36% this year, even as retail sentiment around the company was in ‘extremely bullish’ territory amid ‘high’ message volumes at the time of writing.

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