Wayfair: Falling Short Of Profitability Targets, Even With Cost Cuts

Apr. 20, 2024 9:04 AM ETWayfair Inc. (W) StockW5 Comments
Gary Alexander
31.33K Followers

Summary

  • Wayfair's stock has underperformed the market, falling nearly 10% year to date.
  • The company has implemented multiple rounds of layoffs in an effort to drive efficiency and reduce costs.
  • Wayfair's profit targets for the year may be at risk, especially as the company is expecting revenue to decline in the first quarter.
  • Wayfair trades at a steep mid-teens multiple of adjusted EBITDA.

Wayfair Distribution Center. Wayfair is an e-commerce company that sells home goods online and in outlets.

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This article was written by

31.33K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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