Wayfair provides a variety of websites that offer an extensive selection of home furnishings and decor across all styles and price points. In addition to Wayfair.com, other websites it runs include Birch Lane and Joss & Main.
Wayfair reported first quarter earnings last week that beat revenue, but not earnings Wall Street expectations.
Wayfair reported an earnings loss of $1.62 / share on revenue of $1.94 billion, a rise of 39% from the year-ago quarter.
Wayfair’s stock dropped 7% following the e-commerce-focused home furnishings retailer’s release of its first-quarter financial report. Wayfair reported strong top-line growth of 39%, with direct-to-consumer sales matching that growth rate and even better performance in its international sales. However, Wayfair’s net losses widened by more than 75% on a per-share basis, as the furniture specialist spent more on advertising and overhead expenses than it has in the past. Investors seem dubious about the prudence of that spending, but as long as it can keep bringing in new customers and eventually boost their ordering to the point at which it becomes profitable, then it’ll have been money well spent for Wayfair.
On the monthly chart, price is showing negative divergence, meaning momentum is decelerating / reversing.
Thus, a break below $143 will see further breakdown in price.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.