Back to market news

Wayfair stock halt impressive multi-day winning streak

Shares of the home furnishings and décor e-tailer Wayfair (NYSE: W) retreats almost 10% after the stock spiked more than 50% from the last Thursday’s closing. However, Investors continued to show buying interest in Wayfair shares in the coming days.

Wayfair stock halt impressive multi-day winning streak

Shares of the home furnishings and décor e-tailer Wayfair (NYSE: W) retreats almost 10% after the stock spiked more than 50% from the last Thursday’s closing. The stock dropped another 4% in midday U.S. trading Wednesday While the stock regained some of its vitality before the end of the day after the recent correction.

However, Investors continued to show buying interest in Wayfair shares in the coming days, following the company’s recently announced plans to drive cost efficiencies by cutting 1,750 employees. The company said the reduction of 1,750 employees - including 1,200 in corporate positions - will save about $750 million a year. The new layoffs come just months after the online furniture retailer cut 870 jobs last August.

“The changes announced today strengthen our future without reducing our total addressable market, our strategic objectives, or our ability to deliver them over time” - Wayfair CEO, Niraj Shah said.

The stock also received additional buying pressure after the stock rating was upgraded by big US investment banks. J.P. Morgan analyst Christopher Horvers raised his rating on the stock to Overweight from Underweight. He changed his target for the stock price to $63 from $35. BofA analysts also upgraded Wayfair from Underperform to Buy. And they increased the price target from $30 to $65.

“We are upgrading Wayfair to Overweight from Underweight given a positive shift in market share trends and management’s newfound commitment to controlling expenses/investments” - JP Morgan said.

Wayfair(W) short-term technical outlook

In the short-term, if the stock continues the short-term bullish momentum, then the immediate resistance above $60 breaks and closes above this resistance level then expects the market to zoom up to $65.50 and $73/75. On the downside, the crucial support remains the previous session low of $50, in case the stock break this area, below which the slide could further get extended towards the $44/43 area.

HASH

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

 

Read more

Weekly review: Gold, USD, EURUSD and Dow Jones

Weekly review: Gold, USD, EURUSD and Dow Jones

Global stock markets have ended another brutal week as the banking crisis stoked fears of broader weakness in the global economy. Attention this week will be on planned central banks meetings. Major central banks, such as the US Federal Reserve, Bank of England and Swiss National Bank, are to hold monetary policy meetings this week.

HSBC acquires collapsed SVB’s UK wing

HSBC acquires collapsed SVB’s UK wing

The collapse of the "Silicon Valley Bank" led to widespread panic in the global markets. The bank also financed many firms in the UK, to protect these companies UK Banking giant HSBC has acquired the British arm of SVB with the support of the Bank of England.

Weekly review: Gold, USD, EURUSD and Dow Jones

Weekly review: Gold, USD, EURUSD and Dow Jones

Global stocks markets ended on a strong bearish note on Friday after financial regulators shut down one of the leading lenders in the United States, the Silicon Valley Bank (SVB). This week all eyes will be on the US inflation data, which could reinforce expectations of a bigger rate hike later this month.