Jim Cramer Flags Chewy’s Volatile Stock Trajectory Amid Retail Investor Scrutiny

Jim Cramer spotlighted Chewy Inc. (CHWY) during a recent broadcast, citing significant and unpredictable swings in the stock's price action. The commentary comes at a time when CHWY has exhibited extreme intraday volatility, with shares moving over 8% in a single session earlier in December 2025. Cramer emphasized that such erratic behavior—driven by speculative trading and shifting sentiment—could signal underlying uncertainty in the retailer’s recent performance and future outlook. The pet e-commerce leader has faced headwinds despite a strong initial market reception in prior years. CHWY reported third-quarter revenue of $1.03 billion, a 1.6% year-over-year decline, marking the second consecutive quarter of contraction. Meanwhile, adjusted EBITDA dipped to $49 million, down from $68 million in the same period the prior year. These figures, coupled with a rising cost base and slower customer acquisition, have contributed to investor unease. Cramer advised caution, warning that retail investors should avoid chasing momentum in CHWY without reviewing fundamental metrics. He noted that the stock has traded between $32 and $45 per share over the past six months, reflecting heightened sensitivity to macroeconomic shifts and changes in consumer spending habits. The broader retail sector, particularly consumer discretionary stocks, has shown increased sensitivity to such volatility. Analysts have begun reevaluating growth assumptions for subscription-based models like Chewy’s, which rely heavily on customer retention and predictable lifetime value.