Chewy’s stock drops, as Wall Street may have gotten too excited ahead of earnings

Shares of Chewy Inc. stumbled in early trading Wednesday, as the online seller of pet products reported fiscal second-quarter earnings that matched analysts’ projections but that weren’t good enough to satisfy Wall Street’s high expectations.

The earnings report comes after the stock

CHWY rallied 16.6% over the past month through Tuesday, compared with the S&P 500 index’s SPX gain of 1.9% over the same period. The pre-earnings bullishness was highlighted by Mizuho’s upgrade of the stock on Monday, with the firm citing expectations of “another strong print and positive catalyst.”