Shares of Wayfair (NYSE:W) were rising on Friday morning, as concerns about the company's supply line eased and bargain-hunting investors began buying its battered shares.
As of 11:41 a.m. EDT, Wayfair's shares were up 17% from Thursday's closing price.
Lots of stocks have had a tough ride since the beginning of February, but Wayfair's ride has been tougher than most: The stock lost three-quarters of its value through yesterday's close.
Some of the company's issues are unrelated to the coronavirus pandemic. The company reported in February that it lost nearly $1 billion in 2019, and was hoping to break even in 2020.
But some investors who might have hung on to see if it could deliver were dissuaded by the company's warning that its Chinese suppliers were being disrupted by the COVID-19 virus outbreak. That concern is easing as China recovers from the virus pandemic.
The good news is that Wayfair doesn't have a brick-and-mortar presence to worry about; the effects of the coronavirus on retail traffic aren't a concern. That's probably one reason why its shares were rising on Friday morning.
Of course, the not-so-good news is that furniture and home-goods purchases are the kinds of things that get postponed by cash-strapped households during recessions, and it looks like we're in one of those now.