PET Plummets 24%—What’s Driving the Freefall?

• Wag! Group (PET) collapses 23.66% intraday to $0.1252, hitting a 52W low of $0.075
• Multiple news releases cite Furscription software sale to MWI amid financial strain
• Trading volume surges to 5.05M shares, 20.1% turnover rate signals investor exodus

The stock’s brutal selloff contrasts sharply with its 0.166 opening price, marking a $0.0408 intraday loss—a 24% wipeout in real-time trading. With no fresh earnings or product updates, the sell-off hinges entirely on asset divestiture and sector-specific inflation pressures.

Asset Sale Sparks Concerns Over Financial Viability
The precipitous drop traces directly to repeated announcements of Wag! Group’s sale of Furscription software to MWI. This non-core asset disposal signals a desperate liquidity maneuver for a company already near 52-week lows. With no positive catalysts—such as cost savings or revenue synergies disclosed—the market interpreted this as a last-resort move to stave off insolvency. Analysts note the lack of follow-up details on negotiations with Retriever further amplifies uncertainty, spurring short-term capital flight.

Bearish Technicals Signal Short Opportunities in PAWZ
PAWZ (ProShares Pet Care ETF) and technicals highlight the path forward:
• Bollinger Bands: Current price ($0.1252) hovers near lower band ($0.0585)—a classic oversold signal, but 30-day support holds at $0.1385
• MACD: 0.0119 vs signal line 0.0096—bullish divergence hints at short-term rebound potential
• RSI: 56.47—neutral territory, no extreme overbought/oversold warnings
• 200-day MA: $0.3086—long-term bearish anchor remains intact

Traders should focus on short-term resistance at $0.149 (middle band) and $0.166 (day’s open). Aggressive shorts could target PAWZ with its -0.56% decline, leveraging its pet sector exposure to amplify downside. With theta at 0.04 and gamma at 0.009, PAWZ’s leveraged inverse ETFs (if available) would offer superior decay advantages—though current options are non-existent.

Action Alert: Fade rallies above $0.15. A breakdown below $0.1385 invalidates near-term support and opens a plunge to $0.075.

Backtest Wag! Group Stock Performance
The backtest of PET's performance after a -24% intraday plunge shows mixed results. While the 3-day win rate is 45.25%, the 10-day win rate is 48.75%, and the 30-day win rate is 45.25%, indicating a higher probability of positive returns in the short term, the actual returns over these periods are negative, with a -0.45% return over 3 days, a -0.85% return over 10 days, and a -0.36% return over 30 days. The maximum return during the backtest period was only 0.34%, which occurred on day 7, suggesting that while there is a chance of recovery, the overall performance after the plunge is lackluster.

Beware of Bearish Momentum—PET’s Downward Slide May Continue
Wag! Group’s technicals paint a grim picture: the stock remains trapped in a 12-month downtrend with no clear catalyst to reverse course. While sector leader TRST (-2.24%) also underperforms, PET’s asset sales and lack of earnings clarity set it apart as a high-risk play. Investors should prioritize short positions or PAWZ inverse exposure until the $0.149 resistance holds. A sustained breach of $0.1385 support would confirm a death cross—triggering a race to the 52W low. Final Call: Fade any bounce above $0.15—this is a short’s market until proven otherwise.