Shares of pet-oriented e-commerce company (NYSE: CHWY) rallied by 4.5% Tuesday.
E-commerce companies have been especially hard-hit over the past 18 months or so, as receding COVID-19 concerns brought consumers back to stores, high inflation hindered discretionary spending, and rising interest rates lowered the present values of companies' future earnings. That especially hurts growth stocks that are earning minimal profits today, such as Chewy.
However, Chewy got a double-dose of good news Tuesday: A Wall Street analyst praised the company and put a buy rating on the stock, while new macroeconomic data made lower inflation and lower interest rates look more likely going forward.
Source Fool.com