Wayfair Inc (NYSE:W) was off to what seemed to be a normal day in the market today. That is, until minutes ago when Citron released a report surrounding the company. The report set fear in the minds of investors, leading to a spike downward. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (10:35), W is trading at $44.55 per share after a loss of $1.13 per share or 2.47% thus far today.
W Stock Slammed By Citron
As mentioned above, Wayfair took a dive minutes ago after Citron Research released a report about the company. There are a few particular issues that were pointed out...
- The business model doesn't allow the company to make money.
- Accounts payable exceed 10% of the Wayfair's revenue and are more than the company has in cash on hand.
- The accounting process for the company is a manual one. With a company that big, it makes it nearly impossible to get things right!
Of course, the report goes into quite a bit of detail, but at the end of the day, you get the gist. The company's infrastructure doesn't make sense, financing is out of wack, and accounting is something you would see in an at-home business.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on W stock. In particular, we're interested in how the company responds to the report as well as digging deeper into the company ourselves. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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