W - Wayfair Stock: Buy Sell or Hold?
2023-07-19 09:53:00 ET
Investors are conflicted about Wayfair (NYSE: W) stock. Yes, shares have more than doubled this year through early July. But the stock is still down over 70% since hitting its pandemic high. The e-commerce specialist is well-positioned in an industry that might see fantastic growth over the next few decades. Its earnings potential is attractive, too, given its capital-light selling model.
On the other hand, sales haven't increased in years, and Wayfair is generating painful losses right now. With that mixed picture in mind, let's look at whether the stock is a buy, sell, or hold right now.
Wayfair's last few quarterly reports haven't contained much good news for investors, except regarding cost cuts. The company continued to shed customers in fiscal Q1, with active shoppers falling 15% to 21.7 million. This metric peaked in 2020 when pandemic demand lifted sales to over $14 billion from $9 billion in 2019. But Wayfair has posted two consecutive years of declining sales and is on track for a third one in 2023.
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Wayfair Stock: Buy, Sell, or Hold?