Is Wayfair (W) Fully Priced Following Fresh Analyst Upgrades?

Wayfair (W) received a 'Buy' rating and $125 price target from Rosenblatt, citing AI benefits and 17% upside. Bernstein also upgraded W to 'Outperform' with a $125 target. Q2 revenue was $3.5B, up 7.5% YoY, with active customers at 21.7M. Stock gained 1% premarket.

A California federal court let privacy wiretapping claims under the California Invasion of Privacy Act proceed against Wayfair LLC in Limas v. Wayfair LLC (Aug. 13, 2026). The court allowed claims tied to CIPA Section 631(a) and a Section 638.51 trap-and-trace theory, while dismissing a pen register theory without leave to amend. The plaintiff alleged Wayfair’s site tracking tools linked to major platforms collected user activity data.

Midday movers included Cisco (shares down 2% after HSBC cut its rating to Hold and price target to $120), Applied Materials (down 5% after Q2 adjusted EPS $3.50 on $9.12B revenue), Reddit (up 12% on S&P 500 inclusion Aug. 18), and Sandisk (up 6% after JPMorgan upgraded to Overweight). Other moves cited upgrades, tariffs, and guidance changes.

Bernstein upgraded Wayfair to Outperform from Market-Perform and raised its price target to $125 from $100 after the company’s Q2 results. The firm cited stronger revenue growth and improving operating leverage, projecting ~10% revenue growth in 2027-28 and higher adjusted EBITDA margins, with adjusted EBITDA near $1.1B in 2027 and $1.3B in 2028.

Premarket movers included Reddit, up 12% after S&P Dow Jones Indices said it will join the S&P 500 on Aug. 18. Applied Materials fell over 5% after Q2 results: adjusted $3.50 EPS on $9.12B revenue, with $7.04B from semiconductor systems. Wayfair rose 4% on a Bernstein upgrade. Workday gained ~2% after Reuters reported Silver Lake talks. Fox rose 2% on JPMorgan and Wells Fargo upgrades tied to Roku acquisition for $22B. Sandisk climbed 5% on a JPMorgan upgrade to overweight.

Wayfair reported Q2 results showing total net revenue up 7.5% to $3.5B and U.S. revenue up 8.7% to $3.1B, with a net loss of $1M versus net income of $15M a year earlier. Active customers rose to 21.7M. Specialty brands gained about 20%, and Perigold rose 35%. Wayfair plans a Pittsburgh store next year and S&P Global upgraded its rating.