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posted by martyb on Sunday June 16 2019, @01:23PM   Printer-friendly
from the losing-money-on-every-sale-but-will-make-it-up-with-volume dept.

Chewy raises $1 billion in IPO

It will rain cats and dogs on Wall Street Friday: Online pet supplies retailer Chewy is set to make its debut. And it should be a strong one. Chewy, which was bought by retailer PetSmart in 2017 for nearly $3.4 billion in 2017, priced its initial public offering Thursday at $22 a share. That's above the expected range and values Chewy at $8.8 billion. The company will raise $1 billion from the stock sale and will trade on the New York Stock Exchange under the ticker symbol CHWY.

Chewy is growing rapidly, despite competitive threats from Amazon (AMZN) as well as food giant General Mills (GIS), which recently acquired pet food seller Blue Buffalo.

Sales soared 68% last year to more than $3.5 billion. But the company is still losing money. It reported a net loss of $268 million in 2018, following a $338 million loss a year earlier.

Unicorn meat.


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  • (Score: 0) by Anonymous Coward on Sunday June 16 2019, @03:46PM (5 children)

    by Anonymous Coward on Sunday June 16 2019, @03:46PM (#856261)

    How does a business lose HUNDREDS of millions and still stay viable? Yet another symptom of this modern day insanity.

  • (Score: 2, Interesting) by Anonymous Coward on Sunday June 16 2019, @03:58PM

    by Anonymous Coward on Sunday June 16 2019, @03:58PM (#856264)

    Look at netflix, uber, lyft, etc... interest rates are so low that they can keep going into more and more debt.

    It is a combination of malinvestment, way too much money going to risky bets due to low interest rates, and big banks getting free money for parking it at the federal reserve: https://fred.stlouisfed.org/series/EXCSRESNS [stlouisfed.org]

  • (Score: 0) by Anonymous Coward on Sunday June 16 2019, @04:03PM

    by Anonymous Coward on Sunday June 16 2019, @04:03PM (#856265)

    Keep in mind IOER rises with the federal funds rate: https://fred.stlouisfed.org/series/IOER/ [stlouisfed.org]

  • (Score: 3, Informative) by c0lo on Sunday June 16 2019, @10:55PM

    by c0lo (156) Subscriber Badge on Sunday June 16 2019, @10:55PM (#856378) Journal

    The 0.1%-ers making a killing on your retirement fund, using a Ponzi in disguise.

    --
    https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
  • (Score: 2) by VanessaE on Monday June 17 2019, @01:45PM

    by VanessaE (3396) <vanessa.e.dannenberg@gmail.com> on Monday June 17 2019, @01:45PM (#856628) Journal

    Just the same old bullshit business math I'm sure...

    You know: any profit you expected but didn't make is treated as a tangible loss, and so any profit you DID make doesn't count, whether or not it takes your bank accounts into the red.

    So if you spend $50M a year on R&D, marketing, etc. and make $200M in profits in a given year, but your forecasts said to expect $300M, then you lost $100M, even though you are in fact $150M richer for the year (assuming your spending stayed near $50M).

  • (Score: 0) by Anonymous Coward on Monday June 17 2019, @05:48PM

    by Anonymous Coward on Monday June 17 2019, @05:48PM (#856711)

    They make it up in volume?