Home » General World News » A new study shows Wayfair is losing money on every new customer — and that’s terrible news for the stock (W)

A new study shows Wayfair is losing money on every new customer — and that’s terrible news for the stock (W)





Wayfair, the e-commerce company that generates $3.4 billion in annual sales of home goods and furnishings, loses roughly $10 for every new customer it acquires, according to a new analysis by two business school professors.

That unseemly statistic doesn’t bode well for the company’s future prospects, and it implies that Wayfair — which opened trading Wednesday at about $69 a share, giving it a market value of about $6 billion — could be overvalued by more than 80%.

In a lengthy paper released late last week, Daniel McCarthy, an assistant professor of marketing at Emory University, and Peter Fader, read more >>>

Source:: BusinessInsider.Com

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