Courtesy of Citron Reports by Stocklemon
Citron Exposes Wayfair's Admission that their Business is Fatally Flawed.
Wayfair (NYSE:W) makes Citron feel like apologizing to every company we have written about in the past 5 years. Compared to Wayfair, … you all have viable business models. Any analyst who defends this stock is clueless about furniture retailing and even more clueless about e-commerce.
W is not a Battleground Stock!
Shake Shack, FitBit, Tesla, Ambarella and GoPro: Each of these stocks has passionate bulls and bears of equal conviction. While each of these stocks sells at nosebleed multiples, each has a disruptive, cult like, or blue sky prospect, which longs and shorts will continue to debate.
But there is no bull case whatsoever for this stock, and Citron proves it.
As we have previously tweeted, Citron admired the work of the Friendly Bear published last week on Seeking Alpha explaining why Wayfair’s current business is in the doghouse. While acknowledging Friendly Bear’s piece, Citron elaborates on the real context of Wayfair's actual business prospects, predicting that its stock will soon end up in single digits. We will defer to the Friendly Bear for all relevant information about Wayfair’s dangerously high customer acquisition costs.
Meanwhile, for longs, a challenge: Finish this sentence: Wayfair is the next __________________________??? Exactly.