Way Fair up 20 points on Friday 9/18/2020
Saturday, September 19 2020, 17:56 Permalink
We believe Way Fair stock was up for couple of reason, first the company announced that their 2020 Way Day is schedule for Wednesday 9/23/2020. Way Day is like Prime Day for Amazon (AMZN) which the company offer discounts on most of their products to attract current and new customers.
The other reason W stock was up on Friday is most stay-at-home stocks were up.
We believe W stock ran way too high in August in anticipation of great Q2 results and analysts upgrading the shares and raising price targets. W announced their Q2 results on August 5th and they did indeed blow past the highest estimates and the stock soared to $349 within few days.
We believe that in the next few days leading to Way Day, and maybe the rest of the coming week, W stock will go higher. However, we believe the share will under perform for the remaining of 2020.
Q2 benefited from the US government Stimulus payment of $1,200 to every American, and the $600/ weekly Unemployment Benefits coupled with Stay-at-Home mandates due to the Covid-19, and many people spending more money on their homes. These payment stopped in August and September, besides furniture is not something people buy frequently like food or clothes.