CNBC’s Jim Kramer said Wednesday that investors should buy Petco’s stock instead of Chewy’s after a disappointing quarterly report on Tuesday.
“If [Chewy] Not making a profit even after so many years, I think it is impossible to recommend their stock in this environment. If you want to play pet humanization, I’d rather buy Petco stock, which has the added benefit of making a lot of money, says the “Mad Money” host.
Chewy reported a badly-anticipated quarterly loss and revenue on Tuesday, as well as weak revenue guidance for the first quarter and full year. Stocks of online pet retailers fell in the same day after-trading and fell 16.1% on Wednesday.
Petco stock fell 3.76% on Wednesday. The company reported a pink 2022 revenue guidance for the fourth quarter earlier this month, along with the expected top and bottom lines.
Kramer claims that Chui’s poor performance could be due to consumers ’desire to interact with people since being inside because of the covid. Another reason he prefers Petco to Chewie is that the former provides personal veterinary services for pets, he added.
Petco said it plans to increase its list of full-service veterinary hospitals from around 200 to 900 by the end of its fiscal year. Chiui launched Virtual Veterinary Visit for Pets in October 2020.
“There’s nothing like going to the store and seeing a vet when you get everything you need, including more pets for your pet,” Kramer said.
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