Be Careful With Wayfair Stock

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About: Wayfair Inc. (W)
by: L&F Capital Management
This article is exclusive for subscribers.
L&F Capital Management
Long/short equity, value, investment advisor, hedge fund manager
Summary

Wayfair stock essentially doubled from May 2018 to July 2018.

Second-quarter earnings weren't the best.

Certain aggressive modeling assumptions support the stock heading towards $200.

More realistically, Wayfair stock pulls back to $90.

Long-term, growth looks good; valuation is just rich here and now.

Shares of furniture e-commerce company Wayfair (W) essentially doubled in a few months from May 2018 to July 2018. That big rally, however, hit a speed bump recently amid a rough earnings season