(Bloomberg) -- Shares of Wayfair Inc. are soaring this year as investors bet that the online furniture retailer will benefit from additional stimulus in the U.S. and continued strength in the housing market.
The Boston-based company's shares lead the Russell 1000 Index with a gain of 47% in the first nine trading days of 2021. The stock rallied as much as 19% on Thursday, the most intraday since May, amid optimism following reports that President-elect Joe Biden is aiming for about $2 trillion in Covid-19 relief. The stock later pared some of the gains.
Wayfair and other home-furnishing retailers have seen sales soar in recent quarters as the Covid-19 pandemic sparks a buying surge as cooped-up consumers look to spruce up the spaces where they're spending all their time. Wayfair revenue is projected to jump 56% to $14.2 billion in 2020, according to the average of analyst estimates compiled by Bloomberg. Strength is expected to persist with a 42% increase in the first quarter of 2021, according to the average estimate of analysts.
Sales of home-furnishing goods over the internet increased 89% during the holiday season, according to data released earlier this week by Salesforce.com.
In a presentation at an event hosted by the National Retail Federation on Thursday, Chief Executive Officer Niraj Shah said the company has invested in customer service and this has helped convince more shoppers to buy furniture online.
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