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Citron Research's Profanity-Filled Tweet Against Wayfair

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Citron Research's Profanity-Filled Tweet Against Wayfair
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Notable short-seller Citron Research has been publicly making the case against owning shares of Wayfair Inc (NYSE: W) since at least 2015.

On Monday, Citron's Andrew Left's short thesis was made more apparent after the company now faces a new competitor in the furniture market: Amazon.com, Inc. (NASDAQ: AMZN)

Wayfair's stock tumbled more than 2 percent after Furniture Today, an online furniture news source, reported that Amazon is speaking with around 40 retailer members of the Furniture Marketing Group.

Here is what Citron's profanity (but censored) tweet had to say following the report:

citron_li_2.jpg

Any Furniture Seller Can Join Amazon

According to Furniture Today's Clint Engel, Amazon is in talks with furniture sellers, even those that don't sell nationwide, to list their items on Amazon's online platform. In fact, the sole requirement would be white glove delivery to a dry room.

Engel, citing an Amazon business development representative named Brett Hobson, added that Amazon will charge sellers $39.99 a month for unlimited listings and 15 percent on the product sale and 20 percent on the services.

"We want to make it easier for you guys [furniture sellers] to provide the same customer services you've built your companies on and you pride yourselves on while reaching that massive customer base we've generated," Engel quoted Hobson as saying.

Finally, Engel noted that Amazon is open to integrating a sellers' own financing options in the future and giving sellers the coveted Amazon Prime designation if they can prove themselves capable of handling two-day deliveries or ship products to an Amazon fulfillment center.

But investors rushing to conclude that Amazon's entrance into the furniture market implies the elimination of its competition may need to take a step back.

"I have to really crunch some numbers," Barb Tronstein, co-owner of Auburn Hills, Michigan-based Gardner-White Furniture, told Furniture Today. "You don't have (salesperson) commission. You don't have the brick-and-mortar cost. But whether it makes sense is something I'm not willing to commit to right now."

Related Links:

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Posted-In: Amazon Andrew LeftNews Short Sellers Short Ideas Movers Media Trading Ideas Best of Benzinga

 

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