Pet food supplier Chewy (CHWY) lost 12%, trading at $17.02 in pre-market. Revenue rose by 8.3% Y/Y to $2.74 billion. After including share-based compensation expenses and related taxes of $65.8 million, Chewy posted a net loss of $35.8 million. The firm’s single-digit growth, very thin profit margins, and losses in the quarter make the stock highly unappealing.
Dollar General (DG) gained 3.4% after posting Q3 earnings. Revenue increased by 2.4% Y/Y to $9.69 billion. The discount retailer benefited from positive sales contributions from its new stores. However, store closers and a fall in same-store sales dragged on results.
Dollar General needs to watch out for China-based PDD (PDD). PDD’s shopping app Temu is taking up to 17% of the market share in the U.S. discount store category as of November. This is according to Earnest Analytics. Temu sells dirt-cheap items that are low quality.
However, it sells at prices lower than that listed on Amazon (AMZN). Customers enjoy free returns and low prices. Until PDD raises prices, PDD will grow its U.S. market share.
C3.ai (AI), whose valuation depends mostly on its AI ticker, posted a 13 cent-share loss. C3’s subscription revenue of $66.4 million accounts for most of its revenue of $73.23 million. The company is forecasting another loss in 2024. Non-GAAP loss from operations is in the range of -$115 million to -$135 million.
