Why Wayfair Stock Jumped 18% This Week
Wayfair (NYSE: W) shareholders trounced the market this week as the stock gained 18% through Thursday trading compared to a 3.3% increase in the S&P 500, according to data provided by S&P Global Market Intelligence. The rally didn't put the stock much closer to positive returns over a wider time frame, though. Shares remain lower by more than 70% so far in 2022 compared to the market's 20% decline.
The rally was powered by bargain hunting from investors who have been attracted by Wayfair's reduced valuation.
Wayfair's business is going through some challenges right now. Sales fell 14% in the most recent quarter and hardly improved at all in fiscal 2021. Net losses are back, too, following an encouraging period of substantial earnings through earlier phases of the pandemic.
Source Fool.com
