E-commerce stocks plummet as consumers pull back online spending
Gabby Jones | Bloomberg | Getty Images
While shoppers are keen to return to brick-and mortar stores, inflation is fueling fears that customers will reduce their purchases on essentials to save money.
The combination was bad for many online retailers who are e-commerce-focused, with their stock dropping amid the chaos. a broader market selloffInvestors feared that their growth would slow down and they could lose out on potential profits.
WayfairAfter the 52-week high,’s stock fell more than 20% and touched a new 52 week low. the online furniture retailer reported bigger-than-expected lossesIn the first quarter, we had fewer customers.
Wayfair Chief Executive Officer Niraj Shah told analysts on a conference call Thursday morning that the “typical seasonal pattern of gradually building demand” that the business is used to tracking has been transpiring in a more “muted” fashion.
He also said he has noticed more shoppers are devoting a larger share of their wallets to non-discretionary categories and “reprioritizing experiences like travel.”
EtsyThe disappointing guidance issued by the online marketplace for the second quarter, which led to shares falling 16%, caused in part by the slump of share prices. ShopifyStock fell almost 17% following it forecast that revenue growth would be lowerIt navigates difficult pandemic-era comparisons in the first half.
PoshmarkThe shares of e-commerce site iShopping Secondhand saw a 15% drop around noon ET. Thursday. Thursday. The RealReal FarfetchThese numbers were around 12% lower than those in Warby Parker, ThredUp, Peloton RevolveEach dropped around 10%.
Zachary Fadem from Wells Fargo stated in a note that clients had not expressed a desire to see investors clamoring for pandemic winners with negative EBITDA and high growth.
Mastercard SpendingPulse released a Thursday morning report stating that the total U.S. retail sales, including autos sales, increased by 7.2% in 2017. It said that e-commerce sales declined 1.8% while in-store sales increased 10%.
Chuck Grom, a Gordon Haskett analyst wrote to his clients in which he continued to gather evidence that consumers are beginning to resist rising prices. “This will soon become a conundrum for retail space.”
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