Investors are beginning to believe in (NYSE: W) again. Shares of the home furnishings retailer have handily beaten the market so far in 2023, nearly doubling through the first half of the year. Those gains aren't yet supported by any rebound in the business. In fact, Wayfair's last earnings update contained mostly bad news on both the sales and earnings fronts.

Yet investing is all about the future, and Wayfair has a potentially bright one ahead as it works to capitalize on its large market position in an expanding e-commerce niche. With that prospect in mind, let's look at what trends might impact the stock's path over the next year or so.

Wayfair's last earnings report showed a business under significant stress as a result of a growth hangover that's still ongoing. Its active base of shoppers shrank by 15% through late March, reflecting just a small improvement from the prior quarter's 19% slump. Shoppers are ordering less frequently, too, as spending preferences shift away from home furnishings. Yet they're spending about the same per year due to rising prices. Overall Q1 revenue was down 7%.

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Source Fool.com