W

Wayfair Inc

Consumer, TMT


Presented:05/14/2020
Price:$172.94
Cap:$16.37B
Current Price:$53.14
Cap:$6.56B

Presented

Date05/14/2020
Price$172.94
Market Cap$16.37B
Ent Value$6.65B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S94.63M
Ave Daily Vol4,918,886
Short Int36.31%

Current

Price$53.14
Market Cap$6.56B
Wayfair, Inc. engages in an online home furnishing store. It operates through the U.S. and International segments. The U.S. segment consists of amounts earned through product sales through the Company's five distinct sites in the U.S. and through websites operated by third parties in the U.S. The International segment is composed of earnings through products sales in international sites. The company was founded by Steven K. Conine and Niraj S. Shah in May 2002 and is headquartered in Boston, MA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Wayfair Inc (W)

Highlights

The presenter is long shares of Wayfair Inc (W), which has been a controversial stock since its 2014 IPO. He describes the company as “trying to become the AMZN of home goods,” noting that W has used its IPO proceeds to accelerate growth as fast as possible to create competitive advantages while not worrying about near-term profitability. The strategy has been largely successful in his opinion, but W’s investments in logistics and international expansion has been very expensive. The company has been burning massive amounts of cash, leading bearish investors to the ongoing belief that the model is not viable and W will continue burning cash until it eventually fails. When the company reported Q4’19 earnings, however, there was an increased focus on efficiencies and the path to profitability. This was followed by the outbreak of COVID-19, which the presenter sees as an accelerator for W’s business model. At this point, he considers the stock cheap at $175 per share. Using just the current revenue base and backing out growth spending, he reaches a price target of $250 per share. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.