Chewy, Inc. (CHWY) Strengthens Long-Term Value Case Amid Shifting Internet Sector Dynamics

On January 13, Morgan Stanley raised its terms people connected Chewy to $51 from $48 portion maintaining an Overweight standing connected the shares. In a broader enactment connected the North America Internet sector, the steadfast highlighted that 2026 is apt to lucifer 2025, with investors favoring companies that tin show meaningful returns connected invested capital, peculiarly those leveraging GenAI- oregon GPU-enabled technologies. Within this framework, Chewy, Inc. (NYSE:CHWY) stands retired arsenic a concern showing improving operational leverage and clearer pathways to worth creation, adjacent arsenic different net subsectors look valuation unit from disruption and competitory uncertainty.

Chewy, Inc. (NYSE:CHWY) reinforced this constructive outlook during its 3rd 4th 2025 net telephone successful December. The institution reported nett income of $3.12 billion, representing 8.3% year-over-year maturation and exceeding management’s guidance for the quarter. Performance was supported by continued lawsuit engagement and expanding offerings, with Chewy Vet Care emerging arsenic a notable maturation driver. The veterinary services conception continued to outperform expectations, with 2 further practices opened during the quarter, bringing the full footprint to 14 locations and highlighting Chewy’s advancement successful diversifying beyond halfway e-commerce.

Founded successful 2011 and headquartered successful Plantation, Florida, Chewy, Inc. (NYSE:CHWY) is simply a starring online retailer of favored nutrient and pet-related products. Its expanding ecosystem, which present includes healthcare services alongside its halfway retail platform, positions the institution to seizure a larger stock of favored spending implicit clip portion strengthening lawsuit loyalty and semipermanent gross visibility.

While we admit the imaginable of CHWY arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 9 High Growth Canadian Stocks to Buy

Disclosure: None.