CHWY: The Covid Re-Opening Is Not Going To Stock This Tail Wag

Chewy has taken a breather since it hit it's ATHs in mid Feb. This is a secular drawdown due to the recent rise in rates that has hit all high growth stocks. There is also a perception on this name that it is a "Covid Play" and that it won't continue to gain market share and grow at the same rate during Covid. Yes- CHWY did get incremental growth from Covid lockdowns, however new pet owners who have always used CHWY are not going to start going into Petco to get their food, toys, medicine and other pet related items. They will stay with CHWY.

I think CHWY has developed a strong support level at ~$100 and any dips below that should be bought. I am tracking an $97 support level as well from it's low to start the year. If it broke that $87 level I would re-evaluate the situation.

My 6-Month PT is $125.

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Still would be a buyer on this dip in CHWY. Thesis till intact despite drawdown. Optimal entry point here.