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Friday, Goldman Sachs reiterated a Neutral rating on Wayfair stock (NYSE:W), maintaining a $31.00 price target, close to the current trading price of $31.23. The firm’s analysts noted that Wayfair’s first-quarter performance for 2025 exceeded Goldman Sachs and Wall Street expectations in terms of net revenue and adjusted EBITDA. The outperformance was attributed to a combination of sustained expense discipline and one-time benefits. According to InvestingPro data, Wayfair’s stock has shown significant volatility, with a beta of 3.73 and a 46.7% decline over the past year.
Wayfair’s recent earnings report highlighted several key points for investors. The company did not provide formal second-quarter revenue guidance due to calendar effects that impact the comparability of quarter-to-date trends and low forward visibility. However, Wayfair did comment on strong demand trends so far, which have been better than anticipated. InvestingPro analysis shows the company generated $11.85 billion in revenue over the last twelve months, though with a concerning negative EBITDA of $217 million. InvestingPro subscribers have access to 6 additional key insights about Wayfair’s financial performance.
The company also emphasized its ongoing focus on cost control, providing an expense framework for the second quarter assuming year-over-year revenue stability. Wayfair reiterated its commitment to growing adjusted EBITDA and free cash flow (FCF) in 2025.
In response to the current uncertain economic landscape, including the effects of tariffs, Wayfair acknowledged the challenges but also noted its proactive approach. The company is working closely with suppliers and leveraging its marketplace model to encourage competitive pricing.
Goldman Sachs’ analysts have adjusted their operating estimates following Wayfair’s earnings report and management commentary. Despite the positive results and management efforts, the investment firm chose to maintain its price target of $31 for the next 12 months.
In other recent news, Wayfair reported a notable earnings beat for the first quarter of 2025, with earnings per share reaching $0.10, significantly surpassing the forecasted -$0.22. The company’s revenue for the quarter was $2.73 billion, slightly exceeding the expected $2.71 billion. Analysts have adjusted their price targets for Wayfair following these results. Evercore ISI raised its target to $45, maintaining an Outperform rating, while JPMorgan adjusted its target to $48, also keeping an Overweight rating. Stifel increased its target to $32 with a Hold rating, and Mizuho (NYSE:MFG) reduced its target to $50 but maintained an Outperform rating. These adjustments reflect the company’s strong performance and the cautious outlook amid macroeconomic uncertainties. Wayfair’s management has expressed confidence in its ability to navigate market challenges, highlighting efforts to mitigate tariff impacts and maintain competitive pricing. The company has also taken steps to strengthen its financial position by issuing a high-yield bond and refinancing its credit facility.
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