Wayfair (W) Stock Is Up, What You Need To Know

September 19, 2025 at 12:11 PM EDT

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What Happened?

Shares of online home goods retailer Wayfair (NYSE: W) jumped 2.5% in the morning session after the company's board of directors approved a large performance-based stock award for CEO Niraj Shah, tying his compensation to massive future growth in the company's share price.

The award covered 5,000,000 performance stock units, which are company shares given to an executive only if specific performance goals are met. This grant was structured to vest in six stages over a ten-year timeline. The catch was that the CEO would only receive the shares if he remained in his role and the stock price cleared significant hurdles, ranging from $176 to $679 per share.

This structure signaled strong confidence from the board and tightly aligned the CEO’s personal success with that of the shareholders. The plan was contingent on stockholders approving an increase in shares available under the company's incentive plan. Adding to the positive news, Wayfair also experienced a surge in website traffic, with 20% of its visitors now coming from AI tools like ChatGPT.

After the initial pop the shares cooled down to $90.73, up 2.7% from previous close.

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What Is The Market Telling Us

Wayfair’s shares are extremely volatile and have had 49 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 7 days ago when the stock dropped 3.5% as investors soured on the home furnishings sector after competitor RH (formerly Restoration Hardware) reported disappointing financial results and a weaker outlook. Shares of peer RH tumbled after the company's second-quarter earnings and revenue fell short of Wall Street's expectations.

Adding to the negative sentiment, RH also trimmed its sales forecast and delayed a new product line launch, attributing both setbacks to the impact of tariffs. This news sparked concerns about the health of the broader home goods market, creating selling pressure on other industry players like Wayfair.

Wayfair is up 97% since the beginning of the year, and at $90.73 per share, has set a new 52-week high. Investors who bought $1,000 worth of Wayfair’s shares 5 years ago would now be looking at an investment worth $300.05.

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Wayfair (W) Stock Is Up, What You Need To Know

What Happened?

What Is The Market Telling Us

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