Analyst Note
| Jaime M. Katz, CFA |No-moat Wayfair shares have tumbled as growth has slowed, with the firm lapping robust COVID-19-related demand, and fears surrounding the condition of the consumer have exacerbated the pressure, given rampant recent inflation. The firm is often bucketed with more technology-related stocks, given that e-commerce is its primary sales channel, and Wayfair shares have tumbled more than 70% year to date, significantly wider than broad market indices and numerous other consumer discretionary names. That said, we believe the markdown in shares now offers a compelling value for investors seeking ownership in the category, trading at a roughly 45% discount to our $107 fair value estimate.