Why Wayfair Inc. (W) Went Down On Tuesday?

We recently published a list of Tuesday’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where Wayfair Inc. (NYSE:W) stands against other Tuesday’s worst-performing stocks.

Wall Street’s main indices suffered a bloodbath on Tuesday, recording steep losses amid the looming deadline for President Donald Trump’s new round of tariffs for China that would see the latter slapped with a cumulative 104-percent import tax.

The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500’s 1.57 percent decline, and the Dow Jones’ 0.84-percent drop.

Ten companies mirrored the broader decline, recording hefty losses during the day. In this article, we listed the 10 worst-performing names 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 Inc. tumbled by 12.03 percent anew on Tuesday to end at $24.14 apiece as investors disposed of positions in the company amid the escalating trade tensions between the United States and China.

Wayfair, an online retailer of furniture, decorations, and outdoor items, among others, sources a huge chunk of its supplies from China and is expected to take a beating from the ongoing trade tensions on higher shipping and supply costs.

Retailers in the US already signaled last month that they would likely increase their prices as a result of the tit-for-tat tariffs.

Late last year, an analyst warned that Wayfair, alongside 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 7th on our list of Tuesday’s worst-performing stocks. 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.