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Smart Money Bets Big on Chewy Stock: Viking Global’s Major Stake Increase Signals Potential Rebound in 2026

Published: January 8, 2026

Billionaire Andreas Halvorsen’s Viking Global Investors dramatically increased its position in Chewy (NYSE: CHWY) by 147% in December 2025, adding over 8 million shares to reach 13.5 million shares valued at approximately $437 million. This bold move by a top hedge fund raises questions: Is smart money calling a bottom for Chewy stock amid its recent challenges?

Viking Global’s Aggressive Chewy Investment Details

The transaction stands out:

  • Shares Added: 8,052,955
  • Average Price: ~$32.27
  • New Total Stake: 13,536,645 shares (5.7% of class)
  • Portfolio Weight: Modest but significant conviction play

Viking’s action contrasts with broader market caution on consumer discretionary names.

Why Hedge Funds See Value in Chewy Now

Chewy’s core strengths attract long-term investors:

  • Dominant online pet retail position
  • High subscription revenue (Autoship ~84%)
  • Resilient pet spending category
  • Expanding services like vet care and advertising

Despite margin pressures, fundamentals remain solid for patient capital.

Chewy Stock Performance Context

Recent trading reflects mixed sentiment:

  • Current Price: ~$32.00–$32.16 range
  • 52-Week View: Closer to lows than highs
  • Challenges: Competition, logistics costs
  • Opportunities: Customer growth, margin initiatives

Hedge fund accumulation often precedes sentiment shifts.

What This Means for CHWY Investors in 2026

Viking’s stake increase suggests:

  • Limited downside at current valuations
  • Belief in operational recovery
  • Potential catalyst for broader interest

Execution on growth initiatives will determine trajectory.

Conclusion

Viking Global’s 147% stake increase in Chewy signals strong conviction from billionaire Andreas Halvorsen—potentially marking a turning point for CHWY stock in 2026. While challenges persist, smart money bets highlight undervalued potential in the resilient pet sector. Investors should watch earnings and sentiment for confirmation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock markets are volatile.

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