Wayfair (NYSE:W) Shares Gap Down – Here’s Why

Wayfair Inc. (NYSE:W)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $91.48, but opened at $76.83. Wayfair shares last traded at $83.1510, with a volume of 3,929,941 shares trading hands.

More Wayfair News

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Q4 beat on revenue and EPS — Wayfair reported $0.85 EPS vs. $0.64 expected and $3.34B revenue vs. $3.30B expected; revenue rose 6.9% YoY and management highlighted customer growth and improved profitability. Wayfair Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Partnership expansion — Wayfair and Affirm are extending their partnership into the U.K. and Canada, which may aid international payment conversion and revenue diversification. Wayfair, Affirm expand partnership to UK and Canada
• Positive Sentiment: Management tone remains constructive — the CFO expressed confidence about 2025 results on the company call/interviews, signaling management expects ongoing momentum. Wayfair CFO Kate Gulliver on Q4 results
• Neutral Sentiment: Strategic/tech interest — coverage highlights investor focus on valuation, Affirm expansion and potential AI/Google-related initiatives; these are longer‑term positives but not immediate catalysts. Wayfair (W) Valuation Check As Earnings, Affirm Expansion And Google AI Deal Draw Investor Focus
• Neutral Sentiment: Promotions and inventory moves — heavy warehouse clearout sales and promotional activity are drawing consumer attention (good for volume but could pressure margins). Wayfair’s epic warehouse clearout sale is here—shop the 30 best furniture and decor deals up to 85% off
• Neutral Sentiment: Speculation about strategic alternatives — commentary on private‑equity interest in beaten‑down names is present but speculative for Wayfair today. Why These 5 Depressed Stocks Are Flashing Classic Take-Private Signals in 2026
• Negative Sentiment: Debt‑extinguishment loss and accounting items weighed on the headline profit picture — reporters note a debt extinguishment charge that reduced net income and likely tempered investor enthusiasm despite the beat. Wayfair Beats Earnings Estimates. Why the Stock Is Falling Sharply.
• Negative Sentiment: Shares fell as investors said results “failed to impress” — market reaction suggests traders wanted clearer margin expansion, stronger guidance or cleaner one‑time items. Wayfair shares fall as Q4 results fail to impress investors
• Negative Sentiment: Industry cost pressure risk — potential new/import tariffs on furniture and cabinets could raise input costs for retailers generally, adding a macro headwind for margins. Small furniture retailers face existential tariff threat, regardless of Supreme Court ruling

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on W shares. The Goldman Sachs Group reissued a “neutral” rating and issued a $104.00 price objective on shares of Wayfair in a research report on Wednesday, January 14th. Gordon Haskett upgraded shares of Wayfair from an “accumulate” rating to a “buy” rating and set a $150.00 target price for the company in a research note on Tuesday, October 28th. Morgan Stanley raised their price target on Wayfair from $130.00 to $140.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Jefferies Financial Group downgraded Wayfair from a “buy” rating to a “hold” rating and set a $94.00 price target for the company. in a report on Wednesday, December 3rd. Finally, Mizuho reiterated an “outperform” rating and issued a $130.00 price objective on shares of Wayfair in a report on Friday, January 2nd. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Wayfair currently has an average rating of “Moderate Buy” and an average target price of $107.21.

Wayfair Price Performance

The firm’s 50 day simple moving average is $102.38 and its 200-day simple moving average is $93.55. The company has a market cap of $10.65 billion, a price-to-earnings ratio of -32.10, a P/E/G ratio of 8.14 and a beta of 3.36.

Insider Transactions at Wayfair

In other news, insider Jon Blotner sold 4,997 shares of the firm’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $105.84, for a total transaction of $528,882.48. Following the transaction, the insider directly owned 106,107 shares in the company, valued at approximately $11,230,364.88. This trade represents a 4.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Steven Conine sold 150,000 shares of Wayfair stock in a transaction on Friday, January 23rd. The shares were sold at an average price of $108.87, for a total transaction of $16,330,500.00. Following the completion of the transaction, the insider directly owned 289,073 shares in the company, valued at $31,471,377.51. The trade was a 34.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 950,494 shares of company stock worth $100,127,813. Insiders own 21.91% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Cornerstone Planning Group LLC raised its holdings in shares of Wayfair by 28,200.0% in the third quarter. Cornerstone Planning Group LLC now owns 283 shares of the company’s stock valued at $25,000 after buying an additional 282 shares during the last quarter. Webster Bank N. A. purchased a new stake in Wayfair during the 4th quarter valued at approximately $30,000. True Wealth Design LLC lifted its position in Wayfair by 250.5% during the 3rd quarter. True Wealth Design LLC now owns 326 shares of the company’s stock worth $29,000 after acquiring an additional 233 shares during the period. Global Retirement Partners LLC lifted its position in Wayfair by 156.3% during the 3rd quarter. Global Retirement Partners LLC now owns 328 shares of the company’s stock worth $29,000 after acquiring an additional 200 shares during the period. Finally, V Square Quantitative Management LLC purchased a new position in shares of Wayfair in the 4th quarter valued at approximately $33,000. 89.67% of the stock is owned by hedge funds and other institutional investors.

About Wayfair

Wayfair Inc (NYSE: W) is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company’s portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.