Wayfair Shares Plummets 1.24% as Unusual Put Activity and 465th-Ranked Volume Signal Investor Jitters

Wayfair (W) fell 1.24% on August 8, 2025, with a trading volume of $210 million, down 47.27% from the previous day, ranking 465th in market activity. Unusually high volume in the Sept. 19 $72.50 put option—35.53 times its open interest—suggests bearish positioning, with two large trades accounting for 4,000 contracts. Analysts noted the put could signal hedging against downside risk or a bet on near-term weakness amid elevated valuation multiples. Meanwhile, CEO Niraj Shah sold 25,578 shares via a Rule 10b5-1 trading plan, including 7,836 shares at $77.03 and 17,742 at $77.29, raising questions about insider sentiment.

Wayfair’s Q2 2025 results showed a 5.0% revenue increase to $3.3 billion and a non-GAAP EPS of $0.87, up 85.1% year-over-year. However, active customers declined 4.5% to 21 million, and trailing 12-month EBITDA margins fell to -0.7% as of June 30. Despite improved operating efficiency and margin control, the company’s enterprise value of $12.03 billion trades at 94.3x its EBITDA, more than double its 2021 multiple, highlighting concerns over sustainability. Analysts caution that rising tariffs and consumer spending shifts could pressure margins, particularly as Wayfair’s profitability remains uneven outside its 2020-2021 pandemic-driven peak.

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