Selected stock price target news of the day - February 21st, 2025

By: Matthew Otto

Wayfair Exceeds Revenue Estimates in Q4 but Misses EPS Expectations

Wayfair reported total net revenue of $3.12 billion for the fourth quarter of 2024, exceeding the consensus estimate of $3.05 billion and reflecting a year-over-year increase of 0.2%. U.S. net revenue rose by 1.1% to $2.7 billion, while international net revenue declined by 5.7% to $381 million.

Gross profit for the quarter was $941 million, representing 30.2% of total net revenue. Wayfair posted a net loss of $128 million, with a diluted loss per share of $1.02. Non-GAAP Adjusted Diluted Loss Per Share was ($0.25), which was $0.24 worse than the analyst estimate of ($0.01). Non-GAAP Adjusted EBITDA reached $96 million, and free cash flow stood at $102 million.

Wayfair ended the quarter with $1.4 billion in cash, cash equivalents, and short-term investments, with total liquidity of $1.9 billion. Active customers totaled 21.4 million, down 4.5% year over year, while average order value increased to $290 from $276 in Q4 2023.

For the full year 2024, Wayfair reported total net revenue of $11.9 billion, a decline of 1.3% compared to the prior year. U.S. net revenue was down 1.0% at $10.4 billion, while international net revenue declined by 2.8% to $1.5 billion. Gross profit for the year was $3.6 billion, maintaining a margin of 30.2%. Recorded a net loss of $492 million, an improvement from a $738 million loss in 2023. Adjusted EBITDA nearly doubled to $453 million from $306 million the previous year.

Despite a 5.3% year-over-year decline in orders delivered, repeat customers remained a key driver of sales, accounting for 79.4% of total orders. Wayfair also reported an increase in mobile transactions, with 64.5% of orders placed via mobile devices in Q4 2024, up from 62.8% in the prior-year quarter.

Analysts Lower Price Targets Following Q4 Earnings

Canaccord Genuity analyst Maria Ripps maintained a Buy rating while lowering the price target from $76 to $68.
BofA Securities analyst Curtis Nagle kept a Neutral rating but reduced the price target from $52 to $50.
Needham analyst Bernie McTernan reiterated a Buy rating and the price target at $50.
Stifel analyst Mark Kelly cut the price target to $46.

Which Analyst has the best track record to show on W?

Analyst Michael Lasser (UBS) currently has the highest performing score on W with 7/10 (70%) price target fulfillment ratio. His price targets carry an average of $17.11 (35.73%) potential upside. Wayfair stock price reaches these price targets on average within 43 days.

Akamai Reports Mixed Results for Q4 and Full-Year 2024, Issues Soft 2025 Guidance

Akamai Technologies reported fourth-quarter revenue of $1.020 billion, surpassing the consensus estimate of $1.01 billion and marking a 3% increase year-over-year. Security and compute revenue accounted for 69% of total revenue, rising 16% year-over-year. GAAP net income per diluted share was $0.91, a 12% decline from the prior year, while non-GAAP net income per diluted share came in at $1.66, exceeding analyst expectations of $1.52 by $0.14.

For the full year, revenue increased 5% to $3.991 billion, with security and compute revenue contributing 67% of total revenue and growing 18% year-over-year. GAAP net income per diluted share for 2024 declined 7% to $3.27, while non-GAAP net income per diluted share rose 5% to $6.48. Akamai generated $1.519 billion in cash from operations, representing 38% of total revenue, and repurchased 5.6 million shares for $557 million.

Akamai provided a 2025 revenue and earnings outlook below analyst expectations, citing macroeconomic uncertainty and competitive pressures. First-quarter revenue expected between $1 billion and $1.02 billion, compared to the consensus estimate of $1.04 billion, and non-GAAP EPS of $1.54 to $1.59, below the $1.61 consensus.

For the full year, Akamai forecasts revenue between $4 billion and $4.20 billion, under the $4.25 billion analyst projection, and non-GAAP EPS between $6 and $6.40, falling short of the $6.82 consensus.

Analysts Downgrade and Cut Price Targets Amid Guidance

BofA Securities analyst Madeline Brooks downgraded from Buy to Neutral and the price target from $125 to $100.
Needham analyst Matt Dezort reiterated a Hold rating.
RBC Capital analyst Rishi Jaluria lowered the price target to $90.
Raymond James analyst Frank Louthan IV revised the price target downward from $115 to $110.
Susquehanna analyst Aaron Samuels adjusted the price target to $105, down from $110.
Evercore ISI analyst Amit Daryanani also reduced the price target to $105 from $110.

Which Analyst has the best track record to show on AKAM?

Analyst Stephen Bersey (HSBC) currently has the highest performing score on AKAM with 3/3 (100%) price target fulfillment ratio. Her price targets carry an average of $0.78 (0.82%) potential upside. Akamai Technologies stock price reaches these price targets on average within 30 days.

Alibaba Reports Profit Growth and AI-Driven Expansion in Q4 2024

Alibaba Group Holding reported financial results for the quarter ended December 31, 2024, with net income surging 333% year-over-year to $6.72 billion, surpassing analysts’ expectations of $5.57 billion. Revenue grew 8% year-over-year to $38.38 billion, exceeding the consensus estimate of $37.95 billion.

Earnings per ADS came in at $2.93, $0.22 higher than the analyst estimate of $2.71. Taobao and Tmall Group saw customer management revenue rise 9% to $13.81 billion, while Alibaba International Digital Commerce Group expanded 32% year-over-year to $5.17 billion. Cloud Intelligence Group revenue increased 13% to $4.35 billion, with AI-related product revenue maintaining triple-digit growth for the sixth consecutive quarter. Adjusted EBITA reached $7.52 billion, up 4% from the prior year.

Alibaba also maintained financial discipline while investing in long-term growth, repurchasing 119 million ordinary shares (equivalent to 15 million ADSs) for $1.3 billion. Balance sheet optimization included strategic divestments of non-core assets, such as the sale of its interests in Sun Art for $1.6 billion and Intime for $1 billion. Free cash flow stood at $5.35 billion, reflecting a 31% decline due to increased investments in cloud infrastructure.

Analysts Raise Price Targets Following Q4 Earnings

BofA Securities analyst Eddie Leung maintained a Buy rating while raising the price target from $117 to $150.
Barclays analyst Jiong Shao kept an Overweight rating and lifted the price target from $130 to $180.
Goldman Sachs analyst Ronald Keung increased the price target to $160.

Which Analyst has the best track record to show on BABA?

Analyst Gary Yu (MORGAN STANLEY) currently has the highest performing score on BABA with 8/14 (57.14%) price target fulfillment ratio. His price targets carry an average of $4.59 (5.37%) potential upside. Alibaba Group Holding stock price reaches these price targets on average within 127 days.