With Petco Health and Wellness (NASDAQ:WOOF) chatter on the rise on Reddit and topping several trending ticker lists this morning, investors are pushing WOOF stock down in pre-market trading after yesterday’s near-18% gain.
The WOOF stock ticker has seen a 3,000% jump in mentions on the r/WallStreetBets subreddit in the last 24 hours. The short-loving chatterati have glommed on to the 30% short volume ratio in the shares. The stock also tops Yahoo Finance’s “Trending Tickers” table.
There’s also been speculation on the subreddit that investors may have been led astray by a botnet programmed to post comments on WOOF stock.
A breakout on Monday afternoon followed a positive note from analysts at Oppenheimer following the pet supply retailer’s presentation at the firm’s recent consumer goods conference, according to Seeking Alpha.
WOOF Stock Rides Pandemic-Fueled Pet Adoptions
The pet supply industry was one of the pandemic’s big beneficiaries, as stuck-at-home workers sought four-legged companionship. People were rescuing pets from shelters in such great numbers that some shelters were running out of animals. Naturally, the people adopting these pets will spend money on food, bedding, accessories and so on for their new family members.
WOOF stock is just one of the names to gain from the surge in pet adoptions. Online pet destination Chewy (NYSE:CHWY) smashed first-quarter numbers by a wide margin. Meanwhile, investors in veterinary testing and pharmaceutical company Zomedica (NYSEMKT:ZOM) stock have had their share of ups and downs this year.
WOOF stock, which came to the market in a January initial public offering, is down 4.59% since that debut. In the same time frame, since Jan. 14, 2021, the ProShares Pet Care ETF (BATS:PAWZ) is up 7.38%. The exchange-traded fund tracks the FactSet Pet Care Index, and Petco shares constitute 2.09% of the 31-stock portfolio.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.