Wayfair (NYSE:W) Shares Gap Down – What’s Next?

Wayfair Inc. (NYSE:W)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $91.48, but opened at $76.83. Wayfair shares last traded at $83.1510, with a volume of 3,929,941 shares changing hands.

Wayfair News Roundup

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Q4 beat on revenue and EPS — Wayfair reported $0.85 EPS vs. $0.64 expected and $3.34B revenue vs. $3.30B expected; revenue rose 6.9% YoY and management highlighted customer growth and improved profitability. Wayfair Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Partnership expansion — Wayfair and Affirm are extending their partnership into the U.K. and Canada, which may aid international payment conversion and revenue diversification. Wayfair, Affirm expand partnership to UK and Canada
• Positive Sentiment: Management tone remains constructive — the CFO expressed confidence about 2025 results on the company call/interviews, signaling management expects ongoing momentum. Wayfair CFO Kate Gulliver on Q4 results
• Neutral Sentiment: Strategic/tech interest — coverage highlights investor focus on valuation, Affirm expansion and potential AI/Google-related initiatives; these are longer‑term positives but not immediate catalysts. Wayfair (W) Valuation Check As Earnings, Affirm Expansion And Google AI Deal Draw Investor Focus
• Neutral Sentiment: Promotions and inventory moves — heavy warehouse clearout sales and promotional activity are drawing consumer attention (good for volume but could pressure margins). Wayfair’s epic warehouse clearout sale is here—shop the 30 best furniture and decor deals up to 85% off
• Neutral Sentiment: Speculation about strategic alternatives — commentary on private‑equity interest in beaten‑down names is present but speculative for Wayfair today. Why These 5 Depressed Stocks Are Flashing Classic Take-Private Signals in 2026
• Negative Sentiment: Debt‑extinguishment loss and accounting items weighed on the headline profit picture — reporters note a debt extinguishment charge that reduced net income and likely tempered investor enthusiasm despite the beat. Wayfair Beats Earnings Estimates. Why the Stock Is Falling Sharply.
• Negative Sentiment: Shares fell as investors said results “failed to impress” — market reaction suggests traders wanted clearer margin expansion, stronger guidance or cleaner one‑time items. Wayfair shares fall as Q4 results fail to impress investors
• Negative Sentiment: Industry cost pressure risk — potential new/import tariffs on furniture and cabinets could raise input costs for retailers generally, adding a macro headwind for margins. Small furniture retailers face existential tariff threat, regardless of Supreme Court ruling

Wall Street Analysts Forecast Growth

W has been the topic of a number of analyst reports. Bank of America upgraded shares of Wayfair from a “neutral” rating to a “buy” rating in a research report on Tuesday, October 28th. Evercore increased their price objective on shares of Wayfair from $100.00 to $115.00 and gave the stock an “outperform” rating in a research report on Thursday, October 30th. Mizuho reissued an “outperform” rating and issued a $130.00 price objective on shares of Wayfair in a research note on Friday, January 2nd. Morgan Stanley upped their target price on Wayfair from $130.00 to $140.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Wayfair in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $107.21.

Wayfair Stock Down 10.7%

The company has a market capitalization of $10.65 billion, a PE ratio of -32.10, a price-to-earnings-growth ratio of 8.14 and a beta of 3.36. The firm has a 50-day moving average of $102.38 and a two-hundred day moving average of $93.55.

Insider Activity at Wayfair

In other news, CTO Fiona Tan sold 9,000 shares of the firm’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $119.00, for a total transaction of $1,071,000.00. Following the completion of the transaction, the chief technology officer directly owned 200,328 shares in the company, valued at $23,839,032. This trade represents a 4.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Steven Conine sold 150,000 shares of Wayfair stock in a transaction on Friday, January 23rd. The shares were sold at an average price of $108.87, for a total value of $16,330,500.00. Following the completion of the sale, the insider directly owned 289,073 shares of the company’s stock, valued at $31,471,377.51. The trade was a 34.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 950,494 shares of company stock worth $100,127,813. Company insiders own 21.91% of the company’s stock.

Hedge Funds Weigh In On Wayfair

Institutional investors have recently modified their holdings of the business. Capital World Investors raised its stake in shares of Wayfair by 0.6% in the fourth quarter. Capital World Investors now owns 13,457,158 shares of the company’s stock valued at $1,351,237,000 after acquiring an additional 82,584 shares in the last quarter. Vanguard Group Inc. raised its position in Wayfair by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 9,634,757 shares of the company’s stock valued at $967,426,000 after purchasing an additional 72,707 shares in the last quarter. Renaissance Technologies LLC boosted its stake in shares of Wayfair by 3.5% in the 4th quarter. Renaissance Technologies LLC now owns 5,407,325 shares of the company’s stock valued at $542,950,000 after buying an additional 180,558 shares during the period. Janus Henderson Group PLC boosted its stake in shares of Wayfair by 4.9% in the 4th quarter. Janus Henderson Group PLC now owns 3,570,475 shares of the company’s stock valued at $358,514,000 after buying an additional 166,855 shares during the period. Finally, Spruce House Investment Management LLC grew its position in shares of Wayfair by 37.6% during the second quarter. Spruce House Investment Management LLC now owns 3,000,000 shares of the company’s stock worth $153,420,000 after buying an additional 819,615 shares in the last quarter. Institutional investors and hedge funds own 89.67% of the company’s stock.

Wayfair Company Profile

Wayfair Inc (NYSE: W) is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company’s portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.