Diamonds and Dogs
Chewy (CHWY) looks good. The online pet retailer is jumping over 50% from its IPO price after coming public today. Chewy now sports a market cap of $14 billion while generating $3.5 billion in sales. PetSmart acquired Chewy in 2017 for a reported $3.35 billion and with remain a majority shareholder. PetSmart is looking pretty smart today.
Trade tariffs hitting the chip space. Broadcom (AVG) is down 7% to a four month lower after reporting earnings. Broadcom beat estimates, but lowered guidance for the full year sighting reduced visibility impacting demand due to the US China trade conflict and the ban on business with the Chinese firm, Huawei. Broadcom now expects second half of the year sales to be more in line with the first half. In other words, no recovery in chip demand for now. Four analyst downgrades and one upgrade for Broadcom. The analyst that upgraded the stock may have read the earnings report wrong.