SoFi stock falls after announcing $1.5B public offering of common stock
Investing.com -- Jefferies downgraded Wayfair to Hold, warning that the online furniture retailer’s valuation has expanded well beyond peers at a time when web traffic, survey data and early holiday activity point to a softer demand backdrop.
Wayfair trades at a near 40% premium to comparable consumer internet names.
Jefferies said the case for further multiple expansion is less clear without a path toward stronger 2026 EBITDA growth, where it expects about 12% versus the Street’s 16%.
Jefferies pointed to several “yellow flags” in recent data. SimilarWeb figures show a slowdown in November visits, with US traffic down about 300 basis points from October and Black Friday weekend visits falling about 12% from a year earlier. Morning Consult surveys also show buying propensity turning negative in November after eight straight months of increases.
The trends suggest middle-income shoppers may cut back on home goods as labour market pressures build.
Much of the macro optimism appears priced in, including expectations for rate cuts through 2026, while any softer rebound in housing turnover could leave category demand below market assumptions.
The competitive risks are rising as well, with Walmart distributing its first home catalogue and Target planning a refresh of its home assortment.
Jefferies sees lower fourth-quarter and 2026 earnings, expecting 2026 sales growth about 125 basis points below consensus and EBITDA rising at a low double-digit rate, compared with the market’s mid-teens view.
"With web traffic revealing a slow start to the official kick-off for holiday shopping and consumer survey data signaling a downshift in go-forward buying propensity on the marketplace, risk/reward skews more balanced, in our view," analysts at Jefferies said.