CNBC host Jim Cramer has advised investors not to sell their shares in Chewy Inc. (NYSE:CHWY) based on the online pet products company’s first-quarter earnings results.
What Happened: Cramer said on Twitter that selling shares of Chewy off that “sub number” is a “mistake.”
Chewy, on Thursday, reported first-quarter results that beat analysts’ estimates. Net sales grew 31.7% year over year to $2.14 billion.
The company’s adjusted EBITDA (earnings before interest, taxes, amortization, and depreciation) for the quarter was $77.4 million, up from $3.4 million a year ago.
See Also: How To Buy Chewy (CHWY) Stock
Why It Matters: Chewy’s CEO Sumit Singh said in March that the environment for online shopping for pet products remains "bright" and he believes recent momentum can be sustained. Chewy also expects to benefit from the increased adoption of pets by households.
In addition, Chewy has launched new initiatives such as health services for pets. In October last year, the company announced a nationwide expansion of a new telehealth service for pets.
Chewy was co-founded by Ryan Cohen, who currently serves as chairman at GameStop Corp. (NYSE:GME).
Price Action: Chewy shares closed more than 2% higher in Thursday’s trading at $79.35.
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