Why Wayfair Stock Was Plummeting This Week

Core Insights - Wayfair's stock has experienced a significant decline, falling nearly 14% in the week leading up to the report, reflecting negative market sentiment following disappointing quarterly results [1] - Analysts have reacted to Wayfair's second-quarter performance with price target cuts, indicating a bearish outlook on the company's future [2] Financial Performance - Wayfair reported its best quarter of profitability and cash flow in three years, but it still missed analyst estimates for both net revenue and income [3] - Net revenue for the second quarter decreased by almost 2% year-over-year to $3.12 billion, falling short of the consensus estimate of $3.18 billion [3] - Non-GAAP adjusted net income was reported at $69 million ($0.47 per share), which is nearly three times the $24 million from the same period last year, yet it also missed the expected $0.48 per share [3] Analyst Reactions - Following the earnings report, Barclays' Adrienne Yih reduced her fair value assessment for Wayfair from $58 to $51 per share, maintaining an equal weight (hold) recommendation [2]