Why Wayfair Stock Plunged 14% in August
Shares of Wayfair (NYSE: W) lost 14% last month, according to data provided by S&P Global Market Intelligence. When the online home goods retailer announced its second-quarter earnings in early August, the numbers showed continued robust revenue growth. The company beat analysts' consensus estimate on the top line, with direct retail net revenue up 42% year over year. In addition, its non-GAAP net loss of $1.35 per share matched analysts' expectations.
However, the company's third-quarter outlook forecast that revenue growth will decelerate to a percentage in the mid-30s. Given that shareholders have gotten used to growth in the 40%-plus range, market participants didn't like that prediction, and shares tumbled from their high valuation level.
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Source Fool.com
