2023-04-16 07:25:00 ET
Chewy (NYSE: CHWY) and Etsy (NASDAQ: ETSY) are both niche e-commerce players that have thrived in the shadow of Amazon (NASDAQ: AMZN) . Chewy, which was founded in 2011, sells food, drugs, and other products for pets online. It was acquired by PetSmart in 2017 and spun off in an IPO in 2019. Etsy, which was founded in 2005, is a leading online marketplace for artisan-produced handmade and customized products.
Both stocks hit their all-time highs during the buying frenzy in growth and meme stocks in 2021. But today, shares of Chewy and Etsy trade roughly 70% and 65%, respectively, below those record levels. They both lost their luster as investors fretted over their slower sales in a post-pandemic world and the effect of inflation on consumer spending. Rising interest rates also drove investors from growth to value stocks. Should investors buy either of these out-of-favor e-commerce plays today?
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Better Buy: Chewy vs. Etsy