Wayfair’s 2025 Stock Outlook 🤔

Early Bird Prime for August 10, 2025

Wayfair $W ( ▼ 1.24% ) , the e-commerce furniture giant, is having an interesting year. The stock is up 57.12% so far in 2025. It hit a low in April when President Trump decided to play the tariff card, but since then, the stock has more than doubled.

This past week, Wayfair reported strong earnings. Analysts at Citigroup were so impressed, they upgraded Wayfair's rating to "Buy" from "Neutral," with a new price target of $93, up from $32. The analysts praised Wayfair's resilience in the face of tariffs.

But the furniture market is currently about as stable as a three-legged chair. Elevated interest rates and a weakening housing market are dampening demand for home furnishings. Rising tariff pressures in the U.S. are threatening to increase prices, squeeze consumer wallets, and erode margins for furniture retailers, including our dear Wayfair.

To keep its market share in this declining market, Wayfair has to spend big on advertising and promotions. This heavy spending can further pressure margins, making it a bit of a tightrope walk for the company.

Wayfair's earnings and share price are volatile. They've historically swung with macro trends or one-off market shocks, such as the pandemic. 

Should you buy Wayfair's stock now in 2025 or avoid it? Here’s the answer:

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