WRONG! Wayfair has developed technology that nullifies AMZNs ability to sweep Wayfairs inventory and drop prices to match or beat Wayfair.
Separately, in a study done over the Holidays, Wayfair was found to consistently beat Amazon on price.
And now, furniture suppliers are making hundreds of Wayfair exclusive products that won't be found anywhere else....except in the homes of happy Wayfair customers.
That last point is HUGE. Widens the moat and speaks volumes about who the suppliers are rooting for.
Wayfair is a juggernaut, an agent of change, and is transforming the $700 BILLION furniture industry.
After postin under a penny per share profit on their not-so-massive Holiday Quarter; OSTK UP over 25% as a result.
Of course, Wayfair has taken a huge chunk of their biz, along with so many other has-been retailers, and we'll see that in the Q report on both the top and bottom lines. Could a 25% POP be in the cards? Maybe MORE given the rocket fuel the shorts will provide once reality hits and they scramble for the exits.
Never thought it would happen, but very glad it did!
Covered all my shorts today. As Trump would say, "Yuge gains". Any monkey could have made $$ shorting almost anything the last few weeks. It ain't a Wayfair thang!
Every time these morons post, they reveal how much they really know about Wayfair. Can't debate with ignorance.
Northern, keep shorting it buddy. You deserve the final result, as in "a fool and his money...."
Relax longs, Wayfair gonna CRUSH IT when they announce in three weeks. And they'll guide UP for 2116. Plus, more new initiatives will be rolled out this year and next. Before you know it, Wayfair will not only be running in the black they'll become a darling of the post-Amazon ecommerce world; a case-study in David vs. Goliath.
Are the shorts getting nervous? You betcha. They've tried everything for six months to destroy W but have failed miserably. And now TIME is running out for them and they'd love for a chance to cover at break even in the $20's and low $30's. But how? Desperate tweets? Cool idea! lol It's all they got left (pun intended).
Don't be swayed by a couple two-bit shorts looking for fame (and lost $$$). And their lemming followers here and elsewhere should simply be ignored. They know less than nothing about Wayfair and are gonna get hurt bad blindly following their short puppeteers.
Do your homework and understand what's really going on with this biz. Shorty won't tell you that Wayfair was profitable for several years (7-8% net profits) under it's original CSN brand running over 200 websites. Nor will shorty highlight how much smart money is holding Wayfair, or that the majority of their LARGEST shareholders actually ADDED to their holdings in Q4/15. These are smart guys who know what they're doing and have a deep knowledge of Wayfair's management, history, biz model, and ramp up. The exit strategy is in place, and as long as Wayfair continues to EXECUTE, the outcome will be hugely profitable.
That is unless you were stupid enough to short this puppy @ 22, and again at 28, more at 34, and on and on.
They're trapped and desperate and I have no pity for them.
Long and Strong,
Another gem, this one in Goldman's upgrade of Wayfair this morning:
"Wayfair is outperforming most, if not all, in the home category online and our channel checks indicate this continued in 4Q. We raise our 4Q revenue estimate to $684mn, ahead of consensus of $667mn and guidance of $625-665mn. We raise our 2015-2017 revenue and EBITDA estimates 6% on average as brand awareness, merchandising, personalization, and logistics are driving improved repeat purchases."
Schwartz expects a turn to profitability. "The bigger catalyst, in our view, is proving sustainability of the business model, illustrated by a return to profit. We forecast 2016 adjusted EBITDA of $24mn following five years of losses. Our analysis of unit economics (Exhibit 4) has given us improved comfort."
The growing consensus is that W is not only kicking serious butt, but margin expansion is ahead of schedule.
First came consolidation under the Wayfair brand, then came massive expansion leading to critical mass, and now we finally have Wayfair exclusives; a move that widens the moat and distinguishes Wayfair as more than a powerful aggregator. It's evolving into a unique experience that will further fuel growth, expansion, and long-term success.
This move raises the bar significantly and sends a loud message throughout the furniture industry. Couple this with their expansion into plumbing, design and contracting services, and you can see the beginnings of their future plans taking shape. What's next? Replacement Windows? Why not! Siding? Roofing? Plumbing and Electrical? A vertically integrated, lower cost, high service one stop shop for EVERYTHING Home. It's BLUE SKY baby. Just watch (and PROFIT). Buy the dips and enjoy the ride...
Disruption. Disruption. Disruption. And we've only just begun...
Market To Yahoo: You're an Aging Dinosaur. Now Go Stand in the Corner w Blackberry & AOL and Face the Wall.
Now potential BUYERs will wait for it to fall another 30%
Now This....Leasing More Space in Portland ME for Call Center Now Occupied by LL Bean.
BANGOR, Maine (NEWS CENTER) -- The L.L. Bean call center in Bangor will be closing earlier than originally scheduled to make room for a new tenant. Sources tell NEWS CENTER that Wayfair will be the new company going into that spot and that a call center for the company will be set up at the site. There's no word on how many people it will employ. Wayfair is an online home store with one of its headquarters located in Boston.
Carolyn Beem the Senior Manager of Public Affairs for L.L. Bean said that the call center was originally scheduled to close in May, but will now be closing at the end of March to accommodate the new tenant. She said they moved up the date because, the city of Bangor asked them to. Beem said since L.L. Bean decided to close the Bangor location it's been working closely with the city.
Restoration Hardware (RH) Downgraded today due partly to "heavily promotional" (discounted) sales. Another high end brick and mortar furniture outlet feeling the Wayfair pinch? Hmmm.....
That stock has been cut in half of the last year.
Wayfair will book it's first BILLION DOLLAR quarter this year.
Wayfair will book it's first quarterly profit (and will remain profitable thereafter)
Fidelity will increase it's stake to 15% of the company.
None of the large stakeholders will sell their shares, though some will add.
Amazon will concede the home furnishings eCommerce market to Wayfair (a wise move).
The shorts will suffer greatly before finally capitulating as Wayfair slices through the $50's and $60's
"The key point of the bear thesis is W's business model and ability to generate profits, and we now forecast the company hitting a milestone in 4Q15 - positive EBITDA and FCF - ahead of the consensus timeline, and for profitability to improve in CY16," Citi said.
Same thing I've been saying for weeks and it's the #1 reason the shorts are losing big and will continue to suffer as one by one their lame arguments against Wayfair are vaporized.