W

Wayfair Inc

Consumer, TMT


Presented:12/01/2020
Price:$248.22
Cap:$24.68B
Current Price:$53.14
Cap:$6.56B

Presented

Date12/01/2020
Price$248.22
Market Cap$24.68B
Ent Value$33.05B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S99.45M
Ave Daily Vol2,533,821
Short Int25.93%

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: Peloton Interactive Inc (PTON), Wayfair Inc (W) 

Highlights

The presenter is short shares of Wayfair (W), viewing the company’s impressive growth in 2020 as an “accidental one-time benefit,” which should not be handicapped as an acceleration of other secular trends. He notes that prior to COVID, Wayfair’s business model was not sustainable, nor was the company profitable. He believes that Wayfair is currently overvalued and sees the potential for profits to shrink next year. As a result, he does not see upside beyond the current stock price of $260 per share and models a 30% downside to a price of $160/share. 

Wayfair is an e-commerce company that sells furniture and home goods online. The presenter believes that the company has merely benefitted from COVID-related tailwinds as the pandemic has resulted in consumers working from home and spending less on various activities (i.e., outdoor dining and traveling). 

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Idea Discussion

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