Down Over 90%, Here's Why Wayfair Stock Still Isn't a Buy
Shares of home furnishings website Wayfair (NYSE: W) are down 91% from their all-time high last year -- and some investors might be inclined to buy a stock down this much, thinking it must be cheap.
However, I don't plan to buy Wayfair shares. I buy stocks when I believe the business can create shareholder value over time. And I have my doubts about this when it comes to Wayfair. Here's why.
Wayfair works with over 23,000 suppliers to sell their home goods to consumers and professionals. Considering most of these suppliers are small, getting noticed would be hard without Wayfair's help. In some cases, products ship directly from suppliers to end buyers. In other cases, suppliers keep Wayfair's warehouses stocked with stuff. Wayfair then buys the product after an order is placed, ships it, and recognizes revenue from the sale when it gets to the end customer.
Source Fool.com
