Wayfair shares dropped 7.4% due to Fed signaling fewer rate cuts than expected

From Barchart: 2024-12-18 15:31:40

Shares of Wayfair (NYSE: W) dropped 7.4% as stocks fell after the Fed signaled fewer rate cuts than expected. The Fed reduced rates by 0.25% to 4.25%–4.5%, with future policy adjustments expected to be slower. Lower interest rates typically lead to higher stock valuations. Wayfair’s stock is highly volatile, with 46 moves greater than 5% in the last year. Despite today’s drop, the market doesn’t see this news as fundamentally changing its perception of the business. Wayfair is down 21.7% since the beginning of the year and trading 36.9% below its 52-week high.

Investors who bought Wayfair shares 5 years ago would now have an investment worth $535.12. Wayfair’s recent quarter was solid, with revenue growth slowing but Q2 guidance in line with expectations. The company expects Q2 revenue to be flat to slightly up year on year. The stock is currently at $46.04 per share.



Read more at Barchart: Why Wayfair (W) Shares Are Plunging Today