Warby Parker stock price analysis as its website traffic jumps

Warby Parker stock price has done well in the past few months, as we predicted in this piece in October. WRBY stock jumped to a high of $27 this month, up by 175% from its lowest level in 2024, pushing its value to over $3 billion. So, is the growing website traffic a good catalyst for WRBY?

Warby Parker’s website traffic is rising

Warby Parker is a leading company in the eyewear industry. It has simplified how people buy glasses. It was one of the first companies to take an online-first approach to an industry that many experts believed would not happen. 

The company succeeded by offering quality glasses at an affordable rate. Most of its products are priced at $95, whereas similar glasses from other companies cost hundreds or even thousands of dollars. 

Warby Parker also introduced free shipping and returns for its glasses, allowing people to test their glasses first. 

Therefore, one way to estimate whether Warby Parker’s business is doing well is to look at its website traffic, which has grown recently. According to SimilarWeb, traffic to its website rose by 16% in December to 4.36 million.

Warby Parker has tweaked its business a bit in the past few years. The biggest change was to introduce retail stores, a move aimed at attracting customers afraid of buying glasses online. It now has hundreds of stores in the US and is hoping to add more of them in the next few months. 

These initiatives have increased the company’s revenue, which rose from $370 million in 2019 to $670 million in the last financial year. 

Most importantly, it now has a path to profitability as its net loss has narrowed from $144 million in 2021 to $32.6 million in the trailing twelve months. The management hopes that this will be the first profitable year

WRBY growth is continuing

The most recent results showed that Warby Parker was still seeing strong revenue growth in an industry where consumers are struggling. Its third-quarter revenue rose by 13.3% to $192 million as active customer growth rose by 5.6%.

Warby Parker’s growth is mainly due to the low cost of its glasses. However, its results show that many customers still pay for the more expensive glasses, which sell for $195. The average revenue per customer rose to $305 in the last quarter. 

More customers are buying on Warby Parker more than ever. Its TTM active customers rose to 2.43 million from 2.3 million a year earlier. 

Warby Parker’s annual revenue for 2024 will be between $765 million and $768 million, while its adjusted EBITDA will be $73 million. Analysts expect that its 2025 revenue will grow to $868 million, while its earnings per share (EPS) will move from 23 cents to 32 cents. 

Therefore, there is a possibility that the company will continue doing well in the next few years as it gains market share among young people. 

Warby Parker stock price analysis

WRBY chart by TradingView

The daily chart shows that the WRBY share price bottomed at $9.56 in March 2023 and then rebounded to $27 this year. It has recently formed a double-top chart pattern, a popular bearish reversal sign.

On the positive side, it has remained above the 50-day and 100-day moving averages, a positive sign. Therefore, the outlook for the stock is bullish, with the next point to watch being the psychological point at $30 followed by $35. This view will be confirmed if the stock rises above the year-to-date high of $27.

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