There's buying the dip, and then there's what Andreas Halvorsen's Viking Global Investors just did with Chewy Inc. (CHWY). When a hedge fund nearly triples its stake in a stock that's been sliding, that's not about riding momentum. That's about conviction.
On December 18, 2025, Viking increased its Chewy position by almost 147%, adding more than 8 million shares. That brought the firm's total holdings to roughly 13.5 million shares, valued at around $437 million. Sure, it's only about 1% of Viking's overall portfolio, but the size of this particular add is what's turning heads.
Buying While Others Are Selling
Chewy shares have had a rough ride, down double digits over the past year and trading much closer to 52-week lows than highs. For most investors, that looks like trouble. For long-term institutional money like Viking, it can look like opportunity.
The move suggests Viking believes there's a real gap between what Chewy's stock is trading at and what its underlying business is actually worth. Specifically, the firm seems drawn to Chewy's subscription-heavy revenue model and dominant position in the pet e-commerce space.
What Viking Might Be Seeing
Chewy keeps generating steady, predictable demand because pets need food and supplies whether the economy is booming or not. That kind of recurring revenue stability tends to attract funds willing to look past short-term margin pressure or slowing growth rates.
Viking's average purchase price sits above where the stock trades now, which reinforces that this isn't a flip. It's a multi-quarter wager that the fundamentals will stabilize and market sentiment will eventually catch up.
The Risks Haven't Gone Anywhere
Chewy still faces real challenges. Competitive pricing pressures, rising logistics costs, and cautious consumer spending continue to squeeze profitability. The stock's weak performance tells you the market isn't convinced yet.
A big hedge fund bet doesn't make execution risk disappear. Chewy still needs to prove it can convert its scale into consistent earnings growth, and that's far from guaranteed.
Why This Move Matters
Viking's aggressive accumulation suggests growing confidence that Chewy's downside is limited at current levels. For investors watching from the sidelines, it positions Chewy as a smart-money accumulation play rather than a momentum story. One where patience, not headlines, will likely determine how things play out.
