ClearBridge SMID Cap Growth Strategy dismisses AI-related concerns about CHWY, citing strong execution and margin potential.
Chewy Inc. (NYSE:CHWY) closed at $20.88 on July 10, 2026, reflecting a $8.55 billion market capitalization and a 7.96% one-month return. The online pet retailer’s shares have declined 44.78% over the past year amid mixed growth trends and investor fears of AI disruption.
Despite the downturn, ClearBridge SMID Cap Growth Strategy called concerns overstated, highlighting Chewy’s competitive positioning and margin expansion opportunities. Hedge fund ownership fell slightly, with 53 funds holding CHWY at the end of Q1 2026, down from 56 in the prior quarter.
The firm noted solid company-specific execution but suggested select AI stocks may offer greater upside potential.