Analyst are Cutting Estimates on These 5 Tech Stocks

4. Wayfair Inc. (NYSE:W)

Number of Hedge Fund Holders: 27

Wayfair Inc. (NYSE:W) is a Massachusetts-based e-commerce company that offers millions of products in the furniture, decor, housewares, and home improvement categories. On July 18, Wedbush analyst Seth Basham lowered the price target on Wayfair Inc. (NYSE:W) to $50 from $68 and maintained a Neutral rating on the shares ahead of quarterly results. While industry retail sales growth rose 3% year-over-year in the second quarter, his checks pointed to more demand deterioration, especially for Wayfair Inc. (NYSE:W)’s primary mass market customer segment that is most affected by inflation. 

According to Insider Monkey’s data, 27 hedge funds were bullish on Wayfair Inc. (NYSE:W) at the conclusion of the first quarter of 2022, compared to 28 funds in the last quarter. Brian Bares’ Bares Capital Management is the largest position holder in the company, with 4.5 million shares worth $504.25 million. 

Here is what Vulcan Value Partners has to say about Wayfair Inc. (NYSE:W) in its Q1 2022 investor letter:

“Wayfair Inc. is a leading ecommerce retailer for home goods and furnishings. Wayfair is facing tough comparables as the economy emerges from the pandemic lockdowns. We expected this to be the case. Inflation is much higher than the market expected and the Fed’s response to that inflation has increased the risk of a recession in the near to medium term. With a potential recession on the horizon, our expectations of a multi-year expansion for Wayfair post-pandemic have been pushed out but not diminished. We believe the delay is temporary and we are pleased to see that Wayfair is taking steps to continue to deepen and widen its competitive moat, especially in its logistics capabilities. Long term, we are confident that ecommerce will continue to grow as a share of furniture retail sales. We believe that Wayfair’s continued investments in its infrastructure and supply chain will allow the company to remain the clear leader in this space.”