What happened
Shares of Wayfair (W -3.25%) were surging again on Thursday, after the Senate's approval of a $2 trillion economic rescue package gave investors hope that couch-bound Americans might soon start spending again.
As of 12:00 p.m. EDT, Wayfair's shares were up about 17.5% from Wednesday's closing price.
So what
Wayfair's shares have been on a tear, more than doubling since last week as details of the economic rescue package became clear and the bill moved closer to approval.
Unlike most of its brick-and-mortar rivals, Wayfair makes nearly all its sales of furniture and home goods online. (The company has just two physical stores.) Its shares were highfliers for a while, but layoffs in February and a disappointing earnings report had them sinking even before the scale of the coronavirus pandemic's disruptions in the U.S. became clear to investors.
Image source: Wayfair.
Now what
For the moment, the mood has swung to optimism that Wayfair can get back to its fast-growing ways before too long. But will that optimism last?
I think it's fair to say that things look better now than they did a week ago. But there's still a lot of uncertainty ahead: While Wayfair's shares were probably a bargain at $25, it's not clear that they're still a great buy at $60 or more.
