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Investors Gobble Up $1 Billion of Chewy IPO Shares
"The business wars daily is brought to you by Staples work is changing, but Staples is changing right along with it. The new Staples delivers solutions to help your team be more connected productive, and inspired. Learn more at Staples dot com slash change. From wondering, I'm David Brown, and this is business daily on this Wednesday June twenty sixth. We've said it before and boy, is it true Americans love their dogs all the way to the cash register just considered shui the pet food delivery company when it went public on June fourteenth shares shot past its opening price by sixty percent as hungry investors gobbled up everything they could the company, which is archly owned by PetSmart raised a billion dollars in its IPO the market now values chew at about fourteen billion, even though the company has never turned a profit and it faces a growing pack of pretty ferocious rivals. That's right. The Amazon like e Taylor sales doubled every year between twenty fourteen and twenty seventeen and zoomed even higher last year to three point five billion dollars. But it is still. Losing money as one stock analyst said those losses are getting smaller, but still, it's reminiscent of stock values during the internet, bubble when prophets briefly didn't seem to matter. But this year all IPO's are not the same meaning investors. See something in shui that they're not seeing in other recent public offerings like Uber's which flopped back in may. So what did she do? Earn a blue ribbon. Well the company claims to be the country's largest online pet retailer. It sells all things that your four legged companions get ever need from food to pet medications to birdseed, and even grooming supplies for your horse about sixteen hundred brands sit on its virtual store shelves, since it launched its shipped one hundred million orders, a good number of those subscriptions repeat shipments that take the pain out of forgetting the lizard food at the pet store. It's also capitalizing on our trend toward acting like our furry feathers. Three and scaling companions are essentially our children smart business move since pet ownership is growing, like crazy, particularly among millennials. We lavish so much attention and money in our shit, Susan Siamese that the market for pet products has doubled since two thousand five it's now worth about seventy billion dollars a year. We even spoil our pets during downturns in that's important. The market continued to grow steadily during the great recession. This is not to say that shoe is growth could continue unconstrained where one company discovers a lucrative market, so others last month. Walmart opened an online pharmacy called pet Rx dot com, which delivers any of three hundred brands of pet meds to your door presumably its own vets are prescribing. Those beds, WalMart has twenty one veterinary clinics in it stores now and his opening another one hundred by next spring. It could be a dog fight between chewy and WalMart. There are still a lot of questions about chewy. Is it overvalued will it hold its own against a growing pack of rivals. When will it turn a profit and? Oh, yeah. Does it company? It's called on chewy here. Boy. From wondering this business daily subscribe to our show for free on apple podcasts Ugo podcast. It your or Spotify. Thanks so much for listening. I'm David Brown. We'll see tomorrow. Business wars. Daily is brought to you by Staples. The world of work is changing faster than ever before a week ago open floor plans were in. Now, they're out the pace of our evolving work lives can feel overwhelming. But Staples can help not the old stables, but a new Staples that delivers solutions to help your team be more connected productive, and inspired work may be constantly changing. But Staples is changing right along with it to support you. Learn more at Staples dot com slash change.