Wayfair (W) AI Stock Analysis

• Market Cap: $14.56B
• Dividend Yield: N/A
• Average Volume (3M): 3.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.58
• Revenue Growth: 3.35%
• EPS Growth: 42.99%
• Country: US
• Employees: 12,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.70
• Shares Outstanding: 106,879,780
• 10 Day Avg. Volume: 3,718,916
• 30 Day Avg. Volume: 3,900,233
• PEG Ratio: 0.29
• Price to Book (P/B): -1.98
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 65.68
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 135.13
• 1Y Price Target: $117.76
• Price Target Upside: 5.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26
• EPS Forecast (FY): 2.35
• Revenue Forecast (FY): $12.40B

• Rating: 57 Neutral
• Price Target: $110.00 ▼(-1.54% Downside)

Wayfair's overall stock score is primarily influenced by its financial instability and unattractive valuation, which are significant concerns. However, the strong technical indicators and positive earnings call sentiment provide some optimism, suggesting potential for recovery if financial challenges are addressed.

Positive Factors

Revenue Growth

The consistent revenue growth indicates Wayfair's ability to expand its market presence and adapt to changing consumer demands, which is crucial for long-term sustainability.

Advancements in AI and Technology

Investments in AI and cloud technology enhance operational efficiency and customer experience, providing a competitive edge and supporting future growth.

Improved Free Cash Flow

Improved cash flow management strengthens Wayfair's financial position, allowing for reinvestment in growth initiatives and reducing financial risk.

Negative Factors

Financial Instability

Negative equity and high leverage indicate financial instability, posing risks to long-term viability and limiting strategic flexibility.

Declining Revenue

The declining revenue trend suggests challenges in maintaining market share and competitiveness, impacting long-term growth prospects.

Sluggish Housing Market Impact

A sluggish housing market can dampen demand for home furnishings, affecting Wayfair's sales and growth potential in the near to medium term.

Wayfair Business Overview & Revenue Model

Company Description

Wayfair Inc. is a leading online retailer that specializes in home furnishings and decor. Founded in 2002, the company operates multiple e-commerce platforms, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold, catering to a wide range of customer tastes and budgets. Wayfair offers an extensive selection of products, including furniture, appliances, home goods, and outdoor items, making it a one-stop shop for home improvement and decoration needs.

How the Company Makes Money

Wayfair generates revenue primarily through the sale of home goods on its e-commerce platforms. The company employs a marketplace model, where it lists products both from its own inventory and from third-party suppliers. Revenue is earned through direct sales and by charging suppliers a commission on sales made through the platform. Additionally, Wayfair offers a range of services such as shipping and delivery, which may also contribute to its revenue. The company invests in marketing and customer acquisition to drive traffic to its websites, and it has established partnerships with various manufacturers and brands to expand its product offerings. Factors contributing to its earnings include seasonal promotions, loyalty programs, and the ability to leverage data analytics to optimize inventory and personalize the shopping experience.

Wayfair Financial Statement Overview

Summary

Wayfair faces significant financial challenges, with declining revenues, persistent losses, and a highly leveraged balance sheet with negative equity. While cash flow has shown some improvement, significant risks remain due to operational inefficiencies and financial instability.

Income Statement

The revenue has been declining over the years with a TTM revenue of $11.85 billion, down from $14.15 billion in 2020. Gross profit margin is around 29.5% in TTM, but the company remains unprofitable with a net loss of $357 million. EBIT and EBITDA margins are negative, indicating operational challenges.

Balance Sheet

The company has negative stockholders' equity, which is a red flag. The debt-to-equity ratio cannot be calculated due to negative equity, but total debt exceeds total assets. The equity ratio is negative, indicating financial instability and high leverage.

Cash Flow

Free cash flow has improved to $175 million in TTM from a negative $2 million in 2023, indicating better cash management. Operating cash flow covers net income losses, but cash flow from operations is relatively weak compared to historical performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.24B	11.85B	12.00B	12.22B	13.71B	14.15B
Gross Profit	3.70B	3.57B	3.67B	3.42B	3.90B	4.11B
EBITDA	105.00M	-66.00M	-295.00M	-921.00M	224.00M	637.43M
Net Income	-325.00M	-492.00M	-738.00M	-1.33B	-131.00M	185.00M
Balance Sheet
Total Assets	3.12B	3.46B	3.47B	3.58B	4.57B	4.57B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.37B	1.35B	1.28B	2.40B	2.59B
Total Debt	3.60B	4.22B	4.20B	4.16B	4.05B	3.63B
Total Liabilities	5.88B	6.21B	6.18B	6.13B	6.19B	5.76B
Stockholders Equity	-2.77B	-2.75B	-2.71B	-2.55B	-1.62B	-1.19B
Cash Flow
Free Cash Flow	389.00M	83.00M	-2.00M	-1.13B	130.00M	1.08B
Operating Cash Flow	494.00M	317.00M	349.00M	-674.00M	410.00M	1.42B
Investing Cash Flow	-234.00M	-262.00M	-152.00M	1.00M	-515.00M	-236.07M
Financing Cash Flow	-375.00M	-69.00M	77.00M	16.00M	-303.00M	352.59M

Wayfair Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For W, the sentiment is Positive. The current price of 111.72 is above the 20-day moving average (MA) of 97.35, above the 50-day MA of 89.99, and above the 200-day MA of 57.98, indicating a bullish trend. The MACD of 6.63 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 72.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for W.

Wayfair Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSM	76 Outperform	$23.37B	21.09	51.75%	1.37%	3.28%	9.29%
EBAY	70 Outperform	$39.68B	19.10	42.43%	1.40%	4.89%	17.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
W	57 Neutral	$14.56B	―	―	―	3.35%	42.99%
CHWY	54 Neutral	$13.69B	93.12	34.48%	―	9.04%	-56.79%
ETSY	53 Neutral	$6.31B	44.67	―	―	1.98%	-20.98%
RH	46 Neutral	$3.02B	29.95	―	―	9.56%	205.41%

Wayfair Corporate Events

Wayfair Reports Strong Q3 2025 Growth and Profitability

Wayfair Inc., a leading e-commerce platform specializing in home goods, has reported its financial results for the third quarter of 2025, showcasing significant growth in both revenue and profitability. The company, known for its extensive range of home furnishings and decor, operates primarily in the online retail sector and is headquartered in Boston, Massachusetts.

Wayfair’s Earnings Call: Strong Growth Amid Challenges

Wayfair’s Earnings Call Highlights Strong Growth Amid Challenges

Wayfair Approves Equity Award for CEO Niraj Shah

In September 2025, Wayfair‘s Board of Directors approved a significant performance-based equity award for CEO Niraj Shah, designed to retain and incentivize him through ambitious stock price targets over a ten-year period. The award aims to align leadership with long-term value creation, requiring substantial stock price increases and Shah’s continued leadership, potentially adding over $75 billion in stockholder value if fully realized.

The most recent analyst rating on (W) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Wayfair stock, see the W Stock Forecast page.

Wayfair Repurchases $101M Convertible Senior Notes

On August 20, 2025, Wayfair Inc. repurchased approximately $101 million of its 3.50% Convertible Senior Notes due 2028 for about $199 million, as part of its liability management strategy. This move aims to reduce upcoming maturities and manage potential dilution, impacting the trading liquidity of outstanding convertible notes and potentially affecting the market price of Wayfair’s common stock.

The most recent analyst rating on (W) stock is a Buy with a $91.00 price target. To see the full list of analyst forecasts on Wayfair stock, see the W Stock Forecast page.

Wayfair’s Earnings Call: Growth and Strategic Moves

Wayfair’s Earnings Call Highlights Strong Growth Amid Challenges

Wayfair Reports Strong Q2 2025 Revenue Growth

Wayfair Inc., a leading online retailer specializing in home goods, operates in the e-commerce sector and is known for offering a wide range of products for every style and budget. In its latest earnings report for the second quarter of 2025, Wayfair announced a significant revenue growth, marking its highest profitability since 2021. The company reported a net revenue of $3.3 billion, a 5% increase year-over-year, with a notable performance in the U.S. market contributing $2.9 billion.