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Citron's Andrew Left: Wayfair 'Should Be Cut In Half'

Citron's Andrew Left: Wayfair 'Should Be Cut In Half'

Wayfair Inc (NYSE: W) stock popped into many traders radars Friday following unconfirmed reports that analysts at JPMorgan had made negative comments on the stock.

According to the chatter, analysts at JPMorgan see Wayfair's sales in the bottom half of 2016 being at risk.

Wayfair is one of the stocks that Citron's Andrew Left highlighted as an attractive short. In fact, Left told Benzinga on Friday that the "only thing" Wayfair has going for it is sales and investors should "forget about profits." He mentioned that the stock should be "cut in half."

Wayfair's stock hit an intra-day low of $31.55 and was recently trading around $31.96.

Citron Research commented on Wayfair on August 31, 2015, and suggested that Wayfair's stock is the "most mispriced" in years. Citron's report resulted in a selloff in Wayfair's stock which closed that trading session at $37.30.

"First we would like to stress the obvious, which everyone except the company and the analysts will admit," Citron said in its short report last August. "Wayfair is Overstock, plain and simple. The only difference is that Overstock has
better brand recognition and higher traffic."

Citron added, "for longs, a challenge: Finish this sentence: Wayfair is the next __________________________???... Exactly."

Left reaffirmed his bearish stance on Bloomberg TV back in February.

"At $10 a share this is still a billion dollar company," he said. "There is nothing about this company that is even worth a billion dollars."


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