W aims for Q3 gains as revenue momentum, logistics efficiency and customer engagement drive optimism.
Wayfair (W) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Does Wayfair (W) have what it takes to be a top stock pick for momentum investors? Let's find out.
Wayfair Inc. (NYSE:W ) ayfair Inc. Goldman Sachs 32nd Annual Global Retailing Conference 2025 September 4, 2025 2:35 PM EDT Company Participants Niraj Shah - Co-Founder, Co-Chairman & CEO Kate Gulliver - CFO & Chief Administrative Officer Conference Call Participants Eric Sheridan - Goldman Sachs Group, Inc., Research Division Presentation Eric Sheridan MD & US Internet Analyst Okay. Just in order to keep things on time, I think we're going to get going here.
US furniture stocks fell on Monday following President Donald Trump's announcement of a new tariff investigation on imported furniture. This investigation, set to be completed within 50 days, will determine tariffs on furniture imported into the United States from other countries at a yet-to-be-determined rate.
If you are looking for stocks that have gained strong momentum recently but are still trading at reasonable prices, Wayfair (W) could be a great choice. It is one of the several stocks that passed through our 'Fast-Paced Momentum at a Bargain' screen.
Wayfair is rolling out new AI-powered features to create a more seamless experience for customers.
Upgrading Wayfair to 'Buy' after 2Q25 results show clear inflection: revenue growth, margin expansion, and positive cash flow signal scalable profitability. W is gaining undeniable market share, leveraging tech upgrades, AI, and logistics to outperform a flat home category and pull ahead of competitors. Growth initiatives like CastleGate logistics, Wayfair Verified, and Rewards are driving conversion, supplier stickiness, and new high-margin revenue streams.
Wayfair's +5% net revenue growth in Q2 2025 was quite good, and it mentioned strong Q3 2025 QTD results too. I have thus increased my estimate of Wayfair's adjusted EBITDA from $530 million to $660 million for 2025. Further mid-single digit net revenue growth could increase this to $800 million in 2026.
In 2025Q2, Wayfair posted its strongest quarter since 2021, with a return to revenue growth and GAAP profitability. I am upgrading the stock from Sell to Hold based on these improved fundamentals. Despite strong results, valuation remains stretched, as I believe the market is overly focused on the direction, and not the magnitude, of the numbers.
Wayfair's stock has tripled this year, fueled by retail investor enthusiasm and a strong Q2 earnings beat, but valuations now look stretched. Despite a rebound to mid-single-digit growth, I'm downgrading Wayfair to a sell due to limited upside and significant downside risk at current prices. Key risks include potential demand pull-forward from tariffs, supplier price hikes, and continued decline in active buyers despite revenue growth.
Home furnishings giant Wayfair is leaning into artificial intelligence (AI) amid an uptick in revenues. The company on Monday (Aug. 4) reported earnings showing revenue of $3.3 billion for the quarter, a 5% increase and Wayfair's strongest metrics in four years.