Early Bird Prime for September 13, 2026

Chewy $CHWY ( ▼ 3.04% ) is the beloved pet e-commerce giant that once had investors wagging their tails with excitement. Fast forward to 2026, and it seems like the stock has been chasing its own tail, down 38.97% this year alone.

Over the past five years, Chewy's stock has fallen about 72%. The stock is down due to slowing discretionary pet spending and macroeconomic pressures.

After Chewy posted mixed financial results this week, JPMorgan downgraded Chewy's stock to Neutral from Overweight. They also slashed the December 2027 price target to $24 from $29, citing limited organic growth. 

But consider this: With a lower price now, it could potentially be an entry point for some investors who enjoy a little risk and have the patience of a saint. If you can handle the ups and downs, you might just find yourself sitting pretty if the market turns around. 

In the second quarter, Chewy's revenue rose 7.3% to $3.33 billion. Not exactly a fireworks display, but hey, it's something. Given the current consumer backdrop, it's a small win.

Chewy's management is also showing some smarts by leveraging automation and AI-related initiatives.

Should you buy Chewy's stock right now in 2026 or avoid it? Here’s the answer…