Shareholders of Wayfair Inc (NYSE:W) now have more reasons to be happy with their investment decision, as the company’s latest financial report shows things are heading in the right direction. With the stock up by 219% so far this year, investors have rejoiced at news that the company managed to narrow its losses for the third consecutive quarter. Wayfair registered revenues of $594 million, beating estimates of $522 million, and a loss of $0.13 per share, when adjusted for one-time gains and costs. The company’s active customer base grew by 61% year-over-year, a good sign ahead of the holiday season.
Wayfair Inc (NYSE:W) is not very popular among the funds we follow, as 13 hedge funds held just 5% of the company’s common stock at the end of June. George Soros‘ fund, Soros Fund Management, was among the investors that sought to reduce exposure to the stock, cutting their stake by 39% to 247,663 shares. Eric Bannasch, on the other hand, decided it was a good time to invest in Wayfair, building a position that amassed 897,293 shares by the end of the second quarter.
Shares of Rackspace Hosting, Inc. (NYSE:RAX) have jumped by as much as 15% during the first our of trading, as the troubled cloud-computing company posted better than expected financial results. Revenues came in at $508 million and the company registered a profit of $0.26 per share, exceeding expectations of $503 million in revenue and earnings of $0.20 per share. Following a failed attempt to sell itself, the company has been struggling to grow, as it decided to implement a change in its business model and has been focusing more on the managed cloud market.
During the second quarter, Rackspace Hosting, Inc. (NYSE:RAX)’s appeal to elite funds had cooled down a bit, as the number of funds invested in the company fell to 37 from 39 at the end of March. Their combined holding was valued at $1.19 billion and accounted for 22.6% of outstanding shares. Rackspace Hosting was on Barry Rosenstein‘s shopping list for the second quarter, with JANA Partners reporting an 84% increase in its holding of the stock to 11 million shares in its latest 13F filing.