Wayfair Inc. engages in the e-commerce business in the United States, Europe, and internationally. The company offers approximately 10 million products for the home sector under various brands. It offers a selection of furniture, décor, decorative accents, housewares, seasonal décor, and other home goods through its sites, such as Wayfair, Joss & Main, AllModern, DwellStudio, Perigold, and Birch Lane.
Warfair is also living in an Amazon world. Quite frankly, I admire their grind because I thought by now they would be closing up shop like many retailers who have succumb to Amazon. However, I have been proving wrong up to this point.
Wayfair jumped more than 20% on Friday after the company reported an increase in sales as well as a surge in active customers, though revealed a wider adjusted loss.
The online retailer’s number of active customers jumped 38% to 15.2 million during the quarter; orders per customer came in at 1.85 vs. 1.77 a year ago. Average order value was $227 vs. $229, while repeat customers placed 66.4% of total orders in the fourth quarter compared with 62.4% in the fourth quarter of 2017.
So I will continue to wait for an opportunity to potential short, until then, glad to see Wall Street pumping Wayfair up.
Stephens analyst Rick Nelson said they continue to view Wayfair as a disruptor in the $600 billion home furnishings market with a superior shopping experience, an asset-light business model, and proprietary delivery systems.
And I’m loving what I’m seeing on the monthly chart. Negative divergence…where price makes new highs, but the momentum indicator, RSI is making lower highs…it doesn’t get any better than this.
If the S&P 500 can get a little higher than fall, it would make for a great set-up to short Wayfair.
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.