Wayfair Inc

W has emerged from a corrective reset, displaying a clear sequence of higher highs and higher lows above rising EMAs. A shallow pullback into the 9- and 20-day EMAs, supported by contracting volume and absence of exhaustion, offers an attractive buying opportunity. We maintain a bullish medium-term bias while awaiting continuation through the EMAs.

• ↑Q1 revenue rose 7.4% YoY to $2.9B and active customers hit 21.4M.
• ↑Adjusted EBITDA margin reached 5.2%, the strongest Q1 result in five years.
• ↓Continues reporting net losses; Q1 free cash flow was negative $106M.