My Wayfair stock price forecast was right: What next now?

August 04, 2023 03:03 AM AEST | By Invezz

My Wayfair stock price forecast was right: What next now? — Image source: Invezz

Strong financial results

Wayfair has made a spectacular comeback in the past few months as business conditions improve. Consumer inflation has eased slightly while shipping costs have plunged to the lowest level since 2020.

There are also signs that America’s retail sales have held quite well as the unemployment rate fell to 3.6%. As a result, the company’s business has crawled back. In a statement, the company said that its revenue came in at $3.17 billion, which was better than estimates by $70 million.

The number of active customers in the platform came in at 21.8 million, down by 7.6% from the same quarteer in 2022. This shows that Wayfair is still a popular platform among shoppers.

Wayfair delivered 10.3 million orders in Q2, about 3% from the previous quarter while repeat customers were 80.1%. These customers placed over 8.3 million while the average order value was $307.

Wayfair’s gross profit jumped to over $985 million while its net loss rose to over $46 million. As a result, the company received an upgrade from analysts, including those at Wells Fargo. In a statement, the analyst wrote that:

“Topline trends just inflected, profit progress has legs& W is pivoting to a leaner, more productive business. It’s time to re-recognize W as a high growth, share-taking asset w/ real profit levers & upside catalysts ahead.”

Wayfair is a good investment because of its strong turnaround strategy, growing market share, and improving business conditions.

Wayfair stock price forecast

Wayfair share price has made a spectacular comeback, as I wrote in this article. In that report, I predicted that it would jump to about $75, which it did. The shares have surged above the key resistance level at $76.28, the highest point on August 16th.

At the same time, the shares are being supported by the 50-day and 100-day moving averages. At the same time, the MACD has moved above the neutral point while the Relative Strength Index (RSI) has moved to the overbought level.

Therefore, the shares will likely continue soaring as buyers target the key resistance level at $100. The stop-loss of this trade will be at $80.

The post My Wayfair stock price forecast was right: What next now? appeared first on Invezz.

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