Wayfair announced better-than-expected third-quarter results
Shares of Wayfair Inc (NYSE:W) are sliding today, reversing premarket gains despite the Boston-based department store name's better-than-expected third-quarter results. The company's adjusted earnings of 22 cents per share beat estimates of 13 cents per share, while revenue also came in above expectations, despite falling from the same quarter a year ago.
W was last seen down 0.8% at $42.50, and headed for its fifth-straight week of losses. The equity was rejected by pressure at the $58 level earlier this month, which coincides with its 320-day moving average. Since the start of the year, the equity is down 31.5%.
Notably, Wayfair stock is heavily shorted. Short interest increased 2.3% in the most recent reporting period, and the 20.93 million shares sold short represent 23.4% of W's available float, or nearly five days' worth of pent-up buying power.
Over in the options pits, 22,000 calls and 13,000 puts have crossed the tape so far today, which is triple the amount typically seen at this point. The weekly 11/8 50-strike call is the most popular contract, with positions being opened there.