Some personal opinion on Wayfair . - wayfair is stupendously overvalued - the stock got lucky off of the pandemic, but without any offline presence, its business model is ultimately unsustainable. - current price factors in potential high growth, where I see none. - an online furniture business can only grow so much - without a full transition in business model, from online to consumers, to (Online + Offline) to consumers, its growth will be stunted. And this will only take a few quarters to reflect on their earnings report growth figures. - this is not a long term stock to hold, neither is it a short term one, as I will have listed the conditions for entry below
If you disagree, consider: => what conditions regarding the stock caused it to be trending downwards before the coronavirus => how much has the coronavirus affected those conditions? => are these changes sustainable, will they diminish, will they get stronger?
Conditions: 1. Price $199 2. PA and volume showing unwillingness to go beyond.
without meeting these conditions, it would not be wise, for me, as a trader, to enter a position against the current trend, regardless of how tempted it might be.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.