Over the last six months, shares of the online furniture retailer Wayfair (NYSE: W) declined by more than 33% while the S&P 500 gained 2.94%.
At first sight, the negative market reaction seems exaggerated as revenue increased by 38.49% and 41.56% over the last two quarters. And many other metrics reflect strong operating performance. For instance, customers have been spending more money per order over the last several years. Also, management forecasted another quarter of revenue growth above 30%. Considering the large TTM (trailing 12 months) revenue base of about $8 billion, the expected growth rate is remarkable.
Image source: Wayfair