Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump wrote amid a series of tweets that rattled markets Friday.Politicsread more
"I would love this to be clarified. We come to a deal on trade, boy, this market is up 10 to 15%, but without it's going to be worrisome," Jeremy Siegel says.Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Tesla solar energy systems reportedly ignited at an Amazon warehouse in Redlands, California last June, and the Seattle e-commerce titan confirmed that it has no further plans...Technologyread more
The death comes as federal and state health officials investigate a slew of lung illnesses in connection to e-cigarette use.Health and Scienceread more
Chewy.com, the online pet product retailer owned by PetSmart, priced its IPO at $22 per share Thursday, above the expected range, according to a person familiar with the offering.
The offering raises just over $1 billion and values the retailer at $8.8 billion. Chewy sold roughly 46 million shares, 5 million more than expected, after upping its expected range to $19 to $21 earlier this week.
PetSmart, which is backed by private equity firm BC Partners, acquired Chewy in 2017 for roughly $3 billion to add an online business to complement its store base, as trends shifted online. But as the two business lines diverged, PetSmart transferred part of its stake in Chewy in a move that set the groundwork for a potential IPO.
Following the initial public offering, PetSmart will own roughly 70% of the company's common stock and hold approximately 77% voting power. The two will continue to coordinate purchases, giving both stronger bargaining power, Chewy said in IPO registration documents.
It will use proceeds from the offering for working capital and general corporate purposes, according to the filing.
Some PetSmart investors likely hope that will include paying down debt. The company's credit metrics have weakened since acquiring Chewy, which added $2 billion in debt to its balance sheet, according to credit ratings agency Moody's. The firm estimates that as of February, PetSmart was leveraged at roughly 8.5 times enterprise value to earnings before interest, taxes, deprecation and amortization.
Chewy was founded in 2011 by Ryan Cohen and Michael Day. Cohen last year stepped down as CEO of the company, succeeded by Sumit Singh, Chewy's former chief operating officer, who held prior roles at Amazon Fresh and Dell.
It has distinguished itself from many of its competitors with customer service that includes 24/7 access and two-day shipping of online orders. It calls itself the "largest pure-play pet e-tailer in the United States, offering virtually everything a pet needs.
"[Chewy] benefits from the large market of 85 million households who love their pets," noted Kathleen Smith, principal at Renaissance Capital, which manages IPO-focused exchange-traded funds.
Chewy reported $3.5 billion in sales for fiscal 2018, up from $2.1 billion in 2017.
Since its sale to PetSmart, Chewy has expanded its private-label business and launched "Chewy Pharmacy," an online pet drugstore.
Chewy said in its prospectus it will seek continued growth by broadening the array of products it offers, finding new customers and expanding further into pharmacy.
It also warned the company has yet to turn a profit, despite strong sales growth.
From fiscal 2017 to 2018, it reported a net loss of $268 million, narrowing from a net loss of $338 million. The high costs required to ship heavy pet food have been a drag on the company's results. It has roughly 20% margins.
Chewy joins a long list of unprofitable companies that have recently debuted on the public markets, including Uber, Pinterest and SurveyMonkey. Last October, the percentage of unprofitable U.S. companies that went public reached 83%, topping numbers seen even in the dot-com bubble.
Those companies have no doubt been attracted to a relatively strong IPO market.
Year to date, there have been 65 IPOs in 2019, raising $26 billion, according to Renaissance Capital. Sixty percent of those IPOs are trading above their offer price.
Chewy plans to list Friday on the New York Stock Exchange under the ticker "CHWY."
—CNBC's Emma Newburger contributed to this report.