Thinking of buying puts on Chewy. I have 2 dogs and I've used Chewy during the pandemic but I always found Amazon to be much more convenient. Plus, the pandemic is easing which I think people will go back to shopping at Petco.
I know they have other services like online appointment with the vet but not sure how strong is the prospect.
It's PS ratio is at around 2 as of today which is not bad but it's still 4x valued compared to Petco. Cash flow positive but still losing money. Adding rising inflation and the upcoming rate hikes, i feel like this will eventually go below pre-pandemic levels (below $30).
Is PS ratio of 2 too good to short the stock? Any other thoughts?
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