Chewy Inc (NYSE:CHWY) stock dropped during Tuesday's trading session, hitting a new 52-week low of roughly $19.74. The sharp intraday decline occurred on no significant new corporate news, given the pet e-commerce retailer's recent stable financial reports.

The Nasdaq is down 0.04% while the S&P 500 has shed 0.21%.

Citigroup Slashed Price Forecast

The downward movement follows recent cautious adjustments from Wall Street. On May 12, Citigroup maintained its buy rating on Chewy but lowered its price forecast to $37.

Analysts Highlight Long-Term AI Efficiencies

Despite the negative price action, prior analyst notes focused heavily on Chewy's operational improvements, following Chewy's upbeat fourth-quarter report.

Guggenheim Securities analyst Steven Forbes reiterated a buy rating and a $45 price target. Forbes pointed to automated cost savings, noting,

"We see the potential for 30-40 basis points of fulfillment cost leverage in 2026." He added that management indicated AI-related efficiency benefits of "low tens of millions of dollars" during 2026, "setting the stage for significant G&A expense leverage."

Autoship Metrics Provide Revenue Stability

Needham analyst Bernie McTernan reaffirmed a hold rating in late March, emphasizing that fourth-quarter revenues reflected the "stability and durability" of the business.

McTernan focused on Chewy's reliable customer base, stating that Autoship strength, "now representing 84% of sales, continues to drive predictable, recurring demand."

He also noted that "CHWY is among the first in our coverage to quantify the efficiency gains from AI," specifically across customer service, fulfillment, pharmacy and marketing.

Critical Levels To Watch for Chewy Stock

Chewy's chart remains technically heavy: the stock is trading 18.1% below its 20-day SMA ($24.30) and 37.6% below its 200-day SMA ($31.89), keeping the primary trend pointed down.

The 20-day SMA below the 50-day SMA is bearish, and the death cross (50-day below 200-day) that formed in November 2025 reinforces that sellers have controlled the bigger picture.

The stock is also trading below its prior 52-week low ($21.03), which can turn that former floor into overhead supply if the price tries to bounce back into that zone.

Over the past 12 months, shares have been down 54.03%, so rallies tend to face profit-taking quickly unless the stock can start reclaiming key moving averages.

  • Key Resistance: $21.03
  • Key Support: $19.90

CHWY Price Action: Chewy shares were down 8.55% at $19.77 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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