We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where Wayfair Inc. (NYSE:W) stands against the other stocks.
Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.
The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.
Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.
The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.
To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
An elegant home décor with a stunning furniture piece, showcasing the company’s premium online selections.
Wayfair Inc. (NYSE:W)
Wayfair Inc. (NYSE:W) saw its share prices dive by 8.14 percent on Tuesday to finish at $33.64 apiece, in line with the drop in retail stocks as a result of the ongoing trade war between the United States and its trading partners.
Sentiment was further aggravated by comments from Brian Cornell, chief executive officer of Target, one of the largest retailers in the US, saying in an appearance on CNBC that higher prices on Mexican goods will likely lead to higher prices on produce.
Wayfair Inc. (NYSE:W), an online retailer of furniture, decorations, and outdoor items, among others, is similarly set to bear the brunt of higher costs.
Prior to President Donald Trump’s return to the White House, an analyst already warned last year that Wayfair Inc. (NYSE:W), as well as Best Buy and Five Below, would be especially at risk from the tariffs which could result in a plunge in earnings performance.
Overall W ranks 3rd on our list of Tuesday’s worst performers. While we acknowledge the potential of W as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than W but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.