GET DAILY SIGNALSWayfair (W, $148.49) share plunges 12% over high expenses and little profits
Shares of the online furniture retailer, Wayfair, fell as much as 12% on Thursday over high costs and widening losses, even though the company clocked double-digit growth in revenue for the first quarter of 2019.
Revenue rose 39% to $1.94 billion in Q1 versus an estimated $1.92 billion. However, losses widened to $200.4 million, that is, $2.20 per share, from $107.8 million, or $1.22 a share, during the same period a year ago. The company also saw 16.4 million active customers in the first quarter, a rise of 39% from the previous year’s quarter.
Despite the growth in the number of repeat customers and rise in the average order value to $237 in Q1, the company is still struggling with expenses that are putting pressure on the bottom line.
The company has also initiated a number of investments that include logistics infrastructure, new product offerings and efforts to acquire new customers. In the first quarter, customer acquisition costs stood at $88 per customer.
Analysts have been highlighting that while the Boston-based retailer has mastered the art of selling furniture online, it is still weak in garnering profits.
Despite Thursday’s vast sell-off, Wayfair’s stock, which is valued at $13.3 billion, has climbed 61% this year and in the past 12 months, it has surged more than 95%.
Aroon Indicator for W shows an upward move is likely
W's Aroon Indicator triggered a bullish signal on November 06, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 230 similar instances where the Aroon Indicator showed a similar pattern. In 191 of the 230 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +6.35% 3-day Advance, the price is estimated to grow further. Considering data from situations where W advanced for three days, in 226 of 282 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
Bearish Trend Analysis
The 10-day RSI Indicator for W moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In 30 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 79%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 45 of 58 cases where W's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 78%.
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on W as a result. In 61 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
The Moving Average Convergence Divergence Histogram (MACD) for W turned negative on November 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 35 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where W declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
W broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 31 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 38 (best 1 - 100 worst), indicating steady price growth. W’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 79 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-5.490) is normal, around the industry mean (22.398). W's P/E Ratio (-45.056) is considerably lower than the industry average of (9.569). W's Projected Growth (PEG Ratio) (23.500) is very high in comparison to the industry average of (1.774). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. P/S Ratio (1.040) is also within normal values, averaging (1.328).
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. W’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
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General Information
an online home furnishing store
Industry InternetRetail
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