Shares of Wayfair Inc. (NYSE:W) skyrocketed 37.7% in the month of May, according to data provided by S&P Global Market Intelligence, after the online home furnishings specialist posted strong first-quarter results.
Shares popped more than 22% on May 9, 2017 alone, the day after Wayfair revealed that quarterly revenue had climbed 28.6% to $960.8 million. On the bottom line, Wayfair remained unprofitable, posting an adjusted net loss of $41.4 million, or $0.48 per share. But analysts, on average, were modeling an even bigger net loss of $0.58 per share on revenue of just $935.6 million.
Niraj Shah, Wayfair's CEO, co-founder, and co-chairman, noted that the company had maintained "strong momentum" to kick off the year as it forsakes bottom-line profitability to increase its share of the $600 billion home category in North American and Europe.
"With technology and innovation as the backbone of our business," Shah added, "we feel confident that we have built a category-leading retail brand that is exceptionally well positioned for long term growth and continued success."
Looking forward to the second quarter, Wayfair anticipates revenue of $1.03 billion to $1.055 billion, which was again well ahead of Wall Street's models at the time of the report for second-quarter sales of just over $990 million.
All things considered, there was nothing not to like about Wayfair's quarter, and investors were right to continue driving up the stock in the weeks following its announcement.