Monday's jump in Wayfair's share price took the online seller of home furniture to an all-time high of 1.44, 89 per cent above where it started the year.It's been a maddening run-up for the short-sellers, which include Andrew Left of Citron Research, who slapped a price target on the company in 2015. He returned to the short last summer with a rather higher figure: 0.Like many battleground stocks of this cycle, Wayfair's .5bn enterprise value is a bone of contention for those who believe a company should trade on current fundamentals, rather than Panglossian extrapolations. While it only sells at a relatively modest 2.3 times last year's revenues, according to S&P Capital IQ, the company has yet to make an operating profit, or generate free cash flow, in the last seven
FT Alphaville considers the following as important:
This could be interesting, too:
Menzie Chinn writes Stop Stephen Moore
Eric Crampton writes In Medio Stat Virtus
Menzie Chinn writes Glenn Rudebusch on “Climate Change and the Federal Reserve”
Bradford DeLong writes Brad DeLong's Grasping Reality 2019-03-26 00:52:20
Monday's jump in Wayfair's share price took the online seller of home furniture to an all-time...