Why Wayfair Inc. (W) Stock is Crashing

We recently published a list of 10 Firms Take a Beating on Tariff Worries. In this article, we are going to take a look at where Wayfair Inc. (NYSE:W) stands against other Thursday’s worst performers.

Wall Street’s three major indices suffered a bloodbath on Thursday as investors continued to digest news of President Donald Trump’s tariff rollout on imports.

The tech-heavy Nasdaq fell the heaviest, down by nearly 6 percent. The S&P 500 dropped by 4.84 percent and the Dow Jones was down by 3.98 percent.

Ten individual stocks, predominantly under the retail sector, mirrored a broader market pessimism, finishing the day in the negative territory as investors sold off positions to mitigate risks.

In this article, we named Thursday’s worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2-billion market capitalization and $5 million in trading volume.

An elegant home décor with a stunning furniture piece, showcasing the company’s premium online selections.

Wayfair Inc. (NYSE:W)

Wayfair slashed its valuation by 25.59 percent on Thursday to close at $25.09 apiece on pessimism that it would take a beating from President Donald Trump’s tariff policies.

Earlier last month, the chief executive officer of Target Inc., one of the largest retailers in the US, said 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 4th on our list of Thursday’s worst performers. While we acknowledge the potential of W as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than W but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.