Wayfair Stock's Fundamentals Are a Red Flag Right Now

The e-commerce stock is down over 75% in 2022

facebook X logo linkedin

Wayfair Inc. (NYSE:W) is an American e-commerce company that sells furniture and home goods throughout North America and Europe. Wayfair's brands include Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional.

On June 1, Wayfair announced that its business program, Wayfair Professional, named the winners of their 7th annual Wayfair Professional Tastemaker Awards. The program is meant to recognize excellence and innovation in commercial and residential design.

It's been a rough week for Wayfair stock, with many home good retailers feeling the weight of Target's (TGT) recent profit warning. The 30-day moving average has acted as a ceiling for the entirety of 2022, putting the equity at a steep 71.2% year-to-date deficit. 

w june 9

An unwinding of bullish sentiment among options traders could put additional pressure on the security. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), W sports a 10-day call/put volume ratio of 2.16, which sits higher than 98% of readings from the past year. In other words, calls are being picked up at a much quicker-than-usual clip at the moment. 

Nonetheless, the e-commerce stock continues to offer an elevated level of risk despite its low valuation. Wayfair currently owes $3.94 billion in total debt and hold just $1.99 billion in cash on its balance sheet.

W has been incredibly inconsistent with its top- and bottom-line growth in recent years and will likely end 2022 with significant declines in revenues and earnings. For fiscal 2022, Wayfair is estimated to see a 5.3% decline in revenues and have its earnings drop from $2.32 to -$6.04.

In general, Wayfair stock’s fundamentals present too many uncertainties for the profit potential to be worth the potential losses at this time.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI