Why Wayfair Stock Popped Today
Shares of home-furnishing e-commerce company (NYSE: W) popped on Friday after it announced it was cutting 13% of its global workforce. As of 10:10 a.m. ET, Wayfair stock was up 11%.
Wayfair CEO Niraj Shah summed up the problem by saying, "The reality is that we went overboard in hiring during a strong economic period." For an example of a strong economic period, consider that the company's revenue jumped from $9.1 billion to $14.1 billion in 2020. It built up its workforce too much as sales boomed and now has to course-correct.
To be clear, Wayfair has already been course-correcting. In August 2022, the company laid off 5% of its workforce. Then, in January 2023, it laid off another 10%. Apparently, the previous cuts didn't go far enough, motivating it to let go of more people today.
Source Fool.com
Wayfair Inc. Stock
The stock is one of the favorites of our community with 34 Buy predictions and 1 Sell predictions.
With a target price of 72 € there is a positive potential of 21.87% for Wayfair Inc. compared to the current price of 59.08 €.
