|Bid||111.60 x 900|
|Ask||0.00 x 900|
|Day's Range||112.56 - 117.03|
|52 Week Range||55.33 - 117.45|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 6, 2018 - Aug 10, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||91.57|
Tom McGee, International Council of Shopping Centers (ICSC) CEO, and Veronique de Rugy, Mercatus Center senior research fellow, discuss the implications of the Supreme Court's internet tax ruling on the retail sector and consumers.
At first blush it looked like the Supreme Court ruling in South Dakota v. Wayfair could spell trouble for Amazon.com Inc., but experts say the decision could actually provide fresh opportunities for the e-commerce giant. Amazon (AMZN) shares fell 1.1% shortly after the Thursday ruling was announced. Investors feared the ruling, which said states have the right to collect sales tax on online companies that don’t have a physical presence in the state, could hurt the company.
Some e-commerce companies had a roller coaster of a day after the sales tax vote, but what does it mean for the long term?
The Supreme Court has issued its decision in the pivotal case of South Dakota v. Wayfair, Inc. The decision will have a profound effect upon sales taxation across the country. The case centered on whether a business is required to collect sales tax in the state of a purchaser, and if sales alone is sufficient to create “nexus” (the ability of a state to subject a business to its taxes). Wayfair (XNYS:W) challenged the State of South Dakota law requiring any entity with a minimum of $100,000 in sales or 200 individual transactions within the state to collect sales tax.
The majority of the analysts that cover Wayfair (W) have maintained a “buy” rating on the stock. On June 8, Oppenheimer raised the price target to $120.00 from the $105.00 projected earlier. Currently, analysts’ 12-month average target price for Wayfair stock is $87.76, which reflects a 22.9% downside to the stock price as of June 19.
Amazon is still a beast. that looked at whether Web retailers have to collect state sales taxes on online sales. The vote, a surprisingly close 5-4, overturned a 1967 ruling that had prohibited states from collecting sales taxes from retailers who didn't have a physical presence in the state in question.
Wayfair (W) has reported a strong gross margin for the past five years despite increases in the cost of goods. Higher revenue cushioned the gross margin, which has been in the 23% to 24% range. Gross margin for 2013, 2014, 2015, and 2016 stood at 24.5%, 23.6%, 24.0%, and 23.9%, respectively.
Wayfair (W) has reported revenue growth in the double digits for the past five years. The company posted revenue growth for 2013, 2014, 2015, and 2016 of 52.4%, 44.0%, 70.6%, and 50.2%, respectively. Wayfair has been aggressively making its mark as the online destination for home goods.
A U.S. Supreme Court ruling on Thursday paves the way for states to ask online retailers to collect internet sales tax, a move praised by brick-and-mortar retailers as leveling the playing field between online and physical merchants. Brick-and-mortar retailers that have seen their businesses upended, and sometimes literally destroyed, by the rise of e-commerce finally had a moment of vindication on Thursday: The U.S. Supreme Court, in a landmark 5-4 ruling, basically gave states the green light to have online retailers collect sales tax, just like any local retailer. The highest U.S. court made the decision after South Dakota in 2016 filed a lawsuit against major pure-play online retailers Wayfair, Overstock.com and Newegg regarding state tax collection.
Complying with a U.S. Supreme Court ruling on Thursday that forces online retailers to collect sales tax just like their brick-and-mortar counterparts will be a heavy burden for smaller e-commerce businesses. The Supreme Court on Thursday allowed states to make online retailers collect sales tax, siding against e-commerce companies like Wayfair Inc (W.N) and Overstock.com Inc (OSTK.O) in their high-profile fight with South Dakota.
U.S. states could reap billions in online sales tax revenue and buttress their budgets after the nation's top court ruled on Thursday that e-commerce companies could be forced to collect the money, even if they have no physical presence in a state. The Supreme Court's ruling in favour of South Dakota and against Wayfair Inc (W.N) and two other online retailers was a victory for state governments, and a boost for brick-and-mortar stores. The effect is expected to be positive and widespread because 45 states impose sales taxes and until now were barred from requiring those companies to collect remote sales taxes.
States may force online retailers to collect potentially billions of dollars in sales taxes, the U.S. Supreme Court said in a major ruling on Thursday that undercut an advantage many e-commerce companies have enjoyed over brick-and-mortar rivals. In a 5-4 ruling reviving a South Dakota law challenged by Wayfair Inc(W.N), Overstock.com Inc(OSTK.O) and Newegg Inc, the justices overturned a 1992 high court precedent that had barred states from requiring businesses with no "physical presence" there, like out-of-state online retailers, to collect sales taxes.
President Donald Trump is commenting on a Supreme Court decision that may result in shoppers getting charged sales tax on more online purchases. On Thursday afternoon, Trump tweeted: "Big Supreme Court win on internet sales tax - about time! Big victory for fairness and for our country.
Shares of online retailers fell on Thursday after the Supreme Court ruled 5-4 that states have the authority to require online retailers to collect sales tax on all purchases within their borders, whether the seller has a physical presence in the state or not. The decision overturned a 1992 ruling that concerned mail-order businesses, back when those sales totaled $180 million. In the majority opinion, Justice Anthony Kennedy cited studies that estimate that states lose between $8 billion and $33 billion a year from untaxed online sales.
In a reversal for Wayfair, the online furniture vendor and others of its ilk, the Supreme Court on Thursday, June 21, ruled 5-4 in favor of South Dakota in South Dakota v. Wayfair Inc., which addressed whether online vendors must collect state sales tax on online purchases made through their sites. Shares of Amazon (1.3%), Wayfair (1.6%), Overstock (7.2%) and Etsy Inc.
U.S. states could reap billions in online sales tax revenue and buttress their budgets after the nation's top court ruled on Thursday that e-commerce companies could be forced to collect the money, even if they have no physical presence in a state. The Supreme Court's ruling in favor of South Dakota and against Wayfair Inc and two other online retailers was a victory for state governments, and a boost for brick-and-mortar stores. The effect is expected to be positive and widespread because 45 states impose sales taxes and until now were barred from requiring those companies to collect remote sales taxes.
Old-school retailers were doing the press-release version of a touchdown dance on Thursday after the Supreme Court ruled that state governments can require internet retailers to collect sales taxes even if they don't have a physical presence in that state. Matthew Shay, the CEO of the National Retail Federation, said in a statement that retailers “have been waiting for this day for more than two decades” because, in their view, it creates a more level playing field for both traditional stores and digital upstarts. Amazon.com Inc., for example, has already been collecting sales taxes in all states that have them on the items that it sells directly.
The advent of e-commerce has disrupted the retail sector around the world just like it has disrupted the US retail sector. Canada is Wayfair’s second-most developed market after the US. The company plans to open CastleGate facilities totaling 800,000 feet in Canada in the current quarter to boost operations in the country.
Shares of large internet sellers tumbled in midday trading on June 21 after the US Supreme Court said those merchants could be required to collect sales tax in US states where they don’t have a physical presence. Amazon, Wayfair, eBay, Etsy, and Overstock.com all fell in morning trading, with Wayfair at one point down by…