Wayfair Inc. (W): Bares Capital Trims Position

We just covered the 10 Best Small-Cap Value Stocks to Buy According to Bares Capital and Wayfair Inc. (NYSE:W) ranks 5th on this list.

Wayfair Inc. (NYSE:W) is a long-term holding in the 13F portfolio of Bares Capital. The fund first disclosed a stake in the company back in the first quarter of 2019. This position comprised a little over 1.5 million shares. By the first quarter of 2021, the fund had grown this holding to more than 4.7 million shares. Thereafter, it started trimming this position, reducing it to over 2.5 million shares by the middle of 2022. Another buying spree was registered after this during which the fund grew this holding to around 5 million shares. Since then, the fund has been trimming the stake. Filings for the third quarter of 2025 show that the fund owned 672,000 shares in the firm, down a little over 8% compared to filings for the previous quarter.

Barclays Bets on Trading Boom, Ups IBKR Target to $73

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Wayfair Inc. (NYSE:W) is being targeted by elite investors as the firm has an uncanny ability to capture market share in a wobbly home-goods sector while expanding physical retail footprint. In the most recent earnings cycle, Wayfair signaled a strategic pivot that attracted growth-oriented hedge funds. Management noted a willingness to let gross margins dip slightly below 30% in exchange for faster market share gains. Large institutions often prefer a company that leans in during industry downturns. Funds are betting that by undercutting competitors now, Wayfair will emerge as the dominant, high-scale winner when the housing and furniture markets fully rebound in late 2026.

While we acknowledge the risk and potential of W as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than W and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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