Why Wayfair Stock Soared 32% in September

Online furniture king 's (NYSE: W) stock skyrocketed 32% in September according to data provided by S&P Global Market Intelligence. Although it didn't report any of its own news, it benefited from positive news about industry peers and an overall sense of confidence in a rebounding real estate and home improvement market.

Wayfair has developed a strong online presence with its collection of furniture brands targeting different demographics. The Wayfair label is probably the most well known and reaches the largest target audience, offering a huge selection of mid-priced furniture all online. In addition to housewares, it also has a large third-party platform with many different products.

After a stunning showing early in the pandemic, sales have drooped and have been almost continuously falling for several years. It's reaching toward a plateau but hasn't quite gotten there yet, and management has been trying to become more efficient at its new sales levels. It reported net profits for a brief time when sales were flying, but it hasn't managed to get back to scaling, impeding its efforts to become profitable.

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Source Fool.com