After hours: 4:25PM EDT
|Bid||152.60 x 1400|
|Ask||152.70 x 800|
|Day's Range||147.35 - 153.44|
|52 Week Range||76.60 - 173.72|
|Beta (3Y Monthly)||2.84|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 31, 2019 - Aug 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||159.35|
Wayfair stock took a nosedive after reporting a bigger-than-expected loss. It wasn't all bad news though, the company did see an increase in the average price of orders and in the number of customers ordering online. Yahoo Finance's Heidi Chung joins Seana Smith on The Ticker.
Amazon.com's disclosure that it’s working to upgrade two-day delivery for Prime customers to one-day delivery is causing online retailers to consider joining the race in getting goods to customers as quickly as possible. At least one analyst has raised the question of whether Wayfair (NYSE: W) should also be in that race.
Wayfair, the Boston-based online furniture retailer, joined the ranks of Massachusetts businesses with a spot on Fortune magazine’s list of 500 of the highest-grossing companies in the United States.
The Boston Business Journal’s ranking of the highest paid tech CEOs is a look at 25 chief executives' total compensation in Massachusetts companies, based on information from proxy statements filed with the Securities and Exchange Commission in spring of this year.
Red-hot shares of Wayfair (NYSE:W) ran into a road bump in early May when the company reported a wider-than-expected loss for the first quarter, while delivering a below-consensus revenue guide for the second quarter. Investors, who had pushed W stock up more than 80% year-to-date into the report, were disappointed with the weaker-than-expected numbers.Source: Shutterstock How disappointed? Wayfair stock consequently shed nearly 10% and this newfound downturn in W stock will persist.Why? Three reasons. Growth is slowing. Losses are widening. And the stock isn't priced for either.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBroadly speaking, Wayfair is one of those growth companies that spends at all costs to fuel market share expansion and robust revenue growth. Over the past several years, the Wayfair story has been one of big revenue growth and equally big losses. Investors have honed in on the big revenue growth part, mostly neglecting the big losses part, on the assumption that scale and operating leverage will ultimately produce huge profits down the road. (Hmmm, did someone say "Amazon (NASDAQ:AMZN)"?)This will still happen. But, the Q1 numbers imply that it will happen much more slowly than anticipated. As such, investors are reassessing how much they are willing to pay for Wayfair stock today. That's why the stock is under pressure following not-so-great numbers.What's next? More downside. Relative to the fundamentals, the current valuation underlying W stock is still stretched. The stock doesn't look reasonable until around $140. As such, until the stock normalizes a few points lower, I'd avoid buying the dip. Growth Is Slowing, Profits Are Nowhere To Be FoundThere are two big takeaways from Wayfair's first quarter earnings blunder: growth is slowing and profits remain elusive. * 7 Stocks That Are Soaring This Earnings Season On the first point, Wayfair's growth trajectory is slowing across the board. Direct retail revenue rose 39% in Q1, versus 40%-plus growth last quarter, and higher growth in the prior quarters. U.S. revenue growth has likewise slowed consistently over the past several quarters. So has international revenue growth. Growth is also projected to slip further next quarter.In other words, while Wayfair is still a big 30%-plus revenue growth company, the company's top-line growth rates are consistently dropping every quarter. So long as revenue growth keeps decelerating, investors will increasingly look for signs that margins are improving.And that brings us to the second problem facing W stock investors. Margins aren't improving, and profits remain elusive. U.S. adjusted EBITDA margins dropped from -0.7% in the year ago quarter, to -1.7% last quarter. International EBITDA margins fell nearly 500 basis points year-over-year. Both businesses remain wildly unprofitable, and there is no expectation for either to become meaningfully in the black anytime soon.Overall, then, this is a hyper-growth story losing top-line momentum while at the same time not improving its margin profile. Ultimately, that isn't a winning combination for the stock. Too-Rich ValuationTo be clear, I'm actually bullish on the long-term growth trajectory for Wayfair. The company has a head-and-shoulders lead in the secular growth home furnishings e-retail market. It is tapping into a small portion of its addressable market at scale. It's growing very quickly and has a huge opportunity to expand margins rapidly. All in all, the long-term story reminds me a lot of a smaller Amazon.Having said that, valuation matters, and at current levels, that valuation appears to be too rich for a growth stock that is suffering from both slowing growth and widening losses. * 7 Stocks to Buy That Ought to Buy Back Shares Realistically, Wayfair projects as a big revenue grower over the next several years, mostly thanks to continued e-retail expansion in the global home furnishings market and Wayfair's aggressive international expansion initiatives. Concurrently, because gross margins are already above 20% and improving, operating margins should eventually inflect into positive territory as operating leverage kicks in as a result of increased scale and reduced investment.All together, I think Wayfair can realistically do about $20 in EPS by 2030, and my calculus indicates that $20 in EPS by 2030 supports a 2019 price target of roughly $155.We are less than halfway through 2019, and Wayfair stock is already within spitting distance of that price target. As such, upside from here is limited. But, if the stock keeps dropping towards $140, then that could be the time to buy the dip. Bottom Line on W StockGrowth is slowing. Losses are widening. And even based on aggressive long-term growth assumptions, Wayfair stock still looks slightly overvalued today.As such, this correction in W stock isn't all the surprising. It should persist until the shares are priced more appropriately considering the current dynamic of slowing growth and widening losses.As of this writing, Luke Lango was long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 7 Stocks Worth Buying When They're Down * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post No Profits and Slow Growth Show Wayfair Stock Needs To Cool Down appeared first on InvestorPlace.
Wayfair Inc (NYSE: W) shares continued to fall Friday after reporting a bigger-than-expected first-quarter loss. Bank of America Merrill Lynch's Justin Post reiterated a Neutral rating with a $175 price target. Stifel’s Scott Devitt maintained a Hold rating on Wayfair and raised the target price from $132 to $150.
Wayfair stock dove Thursday as the online retailer reported first-quarter results that fell short on adjusted earnings but beat revenue estimates. The company has yet to show a profit.
Wayfair earnings for the first quarter of 2019 are hitting W stock hard on Thursday.Source: Shutterstock The bad news for Wayfair (NYSE:W) starts with its losses per share of $1.62 for the first quarter of the year. This is wider than the company's losses per share of 91 cents from the same time last year. It was also a blow to W stock by missing Wall Street's losses per share estimate of $1.60 for the quarter.Net loss reported in the Wayfair earnings release for the first quarter of 2019 comes in at $200.39 million. That's worse off than the company's net loss of $107.78 million reported in the first quarter of 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe Wayfair earnings report for the first quarter of the year also includes an operating loss of $193.64 million. The e-commerce company reported an operating loss of $103.07 million during the same period of the year prior.Wayfair earnings for the first quarter of 2019 have revenue coming in at $1.94 billion. This is an increase over the company's revenue of $1.40 billion reported in the first quarter of the previous year. It also comes in above analysts' revenue estimate of $1.92 billion for the period, but that couldn't keep W stock from falling today. * The 10 Best Stocks to Buy for May "We look forward to the sizeable opportunity ahead as we continue to transform the experience of shopping for the home and remain well positioned to take share of the dollars that are coming online in the home category," Niraj Shah, CEO, Co-Founder and Co-Chairman of Wayfair, said in a statement.W stock was down 9% as of Thursday afternoon. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 5 Elephant-Sized Companies Warren Buffett Could Buy * 7 Cheap ETFs for Novice Investors As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Wayfair Earnings: W Stock Falls Hard on Earnings Miss appeared first on InvestorPlace.
Shares of Wayfair plunged as much as 12% Thursday after the company reported a double-digit gain in revenue but a greater-than-expected loss for the first quarter of the year.
Shares of online furniture retailer Wayfair fell more than 7 percent Thursday after the company reported a $200 million loss in its quarterly results, a larger Q1 loss than Wall Street had anticipated.