For the entire year they lost a cool half a billion dollars, despite being at this whole e-commerce thing for over 15 years. Despite the seemingly deteriorating economics, Wayfair's stock is up 70% in the past year and the company is now valued at nearly $15 billion. Here are four significant underlying issues with Wayfair's business model, supporting why I predicted earlier this year that Wayfair's stock is due to crash back to earth. The last few earnings reports suggest that Wayfair’s acquisition costs remain extremely high and they are getting little leverage despite their growing scale. Unless of course Amazon, Walmart, Target or some other huge player decides to acquire them in a "strategic move."

Source: Forbes February 26, 2019 16:52 UTC