Wayfair Inc (W) reported earnings yesterday. The ensuing price action only goes to prove what John Maynard Keynes said many years ago... "The market can stay irrational longer than you can stay solvent." You see, the company reported that total net revenue was up $216.9 million to $960.8 million or 28.6%. This sounds like great news until you get to the bottom line. The company lost $56.6 million on a GAAP basis or $0.66 per share. The company was also cash flow negative at the operating level. Adjusted EBITDA was -$20.9 million and non-GAAP free cash flow was -$69.0 million. How did the share price trade after the announcement? The share price ripped $10.73 or 20.7% higher, ending the day at $61.73. (click here for the news release)
