By Kuldip K. Ambastha
On the trading day of Monday, January 23, 2023, the stock price of Wayfair Inc. (W), an e-commerce company focused on furniture and home goods, rose by +26.8% per share. To close out the trading week on Friday, January 27, 2023, the stock price rose another +13.4% per share. The stock price has been quite volatile in recent years, but Wall Street is currently impressed by Wayfair management’s commitment to cost-cutting measures. Most prominently, the company has announced it will lay off 10% of its total workforce. The lay offs combined with other cost-cutting efforts may lead Wayfair to deliver positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) sooner in 2023 than previously expected.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in W.
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