Wayfair Inc shares fell 5.35% after the BofA Securities has downgraded Wayfair Inc (NYSE: W) from buy to neutral. BofA analyst Justin Post has kept his price target at $330. The online home furnishings seller has seen a positive result this year.
Credit card data revealed that the spending on home furnishing surged in August, as the sales at brick-and-mortar keep moving up. Wayfair Inc saw a growth in its business in a pandemic as many people had reorganized their homes to adjust with families amid lockdown. But now it seems the curve is slowly declining.
Analysts Justin Post said that he is impressed by both delivery completion and margin expansion during a pandemic. Spending on online home furnishings decreased to 49% in August as contrasted to the 68% growth in July, estimating 58% growth in the third quarter. Justin said that he thinks the rise in stock has been driven by the hopes for plus.
Share of Wayfair (NYSE: W) plunged 5.35% as it lost -14.76 on Friday. It had reported a trading volume of 4.84 million as compared to the average volume of 2.32 million. In the past 52-weeks of trading, this company’s stock fluctuated between the low of $21.70 and a high of $349.08.
It had moved up 1102.49% from its 52-weeks low and moved down -25.25% from its 52-weeks low. Wayfair market capitalization remained high, hitting $26.30 billion at the time of writing.
Justin said that the Sensor Tower’s app download data unveiled an increase in Wayfair’s mobile app downloads, with a y/y drop in August. It revealed that business trends are now moving towards its original state. Another round of stimulus and Way Day in late September could stimulate some short term increase, but the competition is growing in 2021.