Wayfair Suddenly Looks Like a Surprise Winner in the Coronavirus Economy. Is It a Buy?
Wayfair (NYSE: W) shares surged on Monday. The online home goods seller had been one of the biggest losers in the coronavirus sell-off, with the stock down more than 60% at one point. However, the growth stock recouped much of those losses this week after the company reported a surprising surge in sales.
In its COVID-19 update, Wayfair said it would meet or exceed its earlier guidance for the first quarter. That news was a stark contrast to the parade of retailers and other affected companies that have issued business updates, only to suspend guidance and draw down lines of credit. Investors seem to have thought that Wayfair would be equally affected, but the company appears to be a beneficiary, at least for now, from shifting shopping habits as Americans adapt to coronavirus-related shutdowns.
Management said that revenue grew by slightly less than 20% in January, February, and early March, but its growth then doubled toward late March, and has remained that way through early April.
Source Fool.com
