What Happened?

Shares of online home goods retailer Wayfair (NYSE: W) jumped 3.6% in the afternoon session after JPMorgan raised its price target on the stock, citing positive signs ahead of the company's third-quarter earnings report. 

Analyst Christopher Horvers increased the price target from $82 to $105 while keeping an "Overweight" rating on the shares. The firm's positive view was based on checks that pointed to stronger-than-expected performance. These checks suggested U.S. revenue grew by 6%, which would lift total company revenue by 4.7%. This figure was ahead of broader market expectations. The analyst also noted that Wayfair's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were likely to beat consensus estimates. The optimistic note came just before Wayfair was scheduled to release its official quarterly results.

After the initial pop the shares cooled down to $85.90, up 3.4% from previous close.

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What Is The Market Telling Us

Wayfair’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 4.3% on the news that investors' concerns about US-China trade tensions were eased by President Trump's more conciliatory tone over the weekend. Following a sharp market drop the previous trading day driven by trade conflict escalation, Wall Street's main indexes opened significantly higher. The Dow Jones Industrial Average, S&P 500, and Nasdaq all saw gains of over 1%. The rebound was attributed to comments made by the President on social media, where he stated the "China situation will all be fine" and that the U.S. "wants to help China, not hurt it!!!" This shift in rhetoric prompted a return to risk assets, as traders brushed aside the previous week's fears. The rally ahead of the upcoming earnings season suggests that the "buy-the-dip" mentality remains strong among investors whenever trade jitters subside.

Wayfair is up 86.5% since the beginning of the year, and at $85.90 per share, it is trading close to its 52-week high of $90.17 from September 2025. Investors who bought $1,000 worth of Wayfair’s shares 5 years ago would now be looking at an investment worth $313.12.

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