Wayfair (W, $148.49) share plunges 12% over...

Indra Bhattacharjee

published in Blogs

May 03, 2019

Wayfair (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%.

Related Tickers: W

Sergey Savastiouk

published in Blogs

Mar 07, 2021

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.

John Jacques

published in Blogs

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Sergey Savastiouk

published in Blogs

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Edward Flores

published in Blogs

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How to Become the Millionaire Next Door

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Alla Petriaieva

published in Blogs

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Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.

Sergey Savastiouk

published in Blogs

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When Is the Next Recession Coming?

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Abhoy Sarkar

published in Blogs

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Central banks have been buying $2.4 billion in assets every hour for the past two months

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Rick Pendergraft

published in Blogs

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Sergey Savastiouk

published in Blogs

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Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.

Abhoy Sarkar

published in Blogs

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US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate. Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.