Warby Parker’s stock has performed well over the last few months as predicted by this article in October. WRBY’s stock price jumped from $27 to $27 this month. This is a 175% increase over its previous low in 2024. It has now reached a value of $3 billion. Is the increasing website traffic good for WRBY stock?
Warby Parker website traffic is increasing
Warby Parker, a leader in the industry of eyewear, is an innovative company. The company has made it easier for people to buy eyeglasses. The company was the first to adopt an online-first strategy in an industry where many thought it would never happen.
Its success was due to its ability to offer quality glasses for an affordable price. The company’s products cost $95. Similar glasses by other companies can be purchased for hundreds of dollars or thousands.
Warby Parker has also offered free shipping and return for their eyeglasses, so that people can try them out first.
If the website traffic has increased recently, this can be used to gauge how well Warby Parker is performing. SimilarWeb reports thattraffic on Warby Parker’s website grew by 16% to 4,36,000,000 in December.
Warby Parker’s business has changed a little in recent years. In order to attract customers who were afraid to buy glasses online, Warby Parker introduced retail stores. The company has now opened hundreds of retail stores across the US, and hopes to expand this number in the coming months.
The company has increased its revenue from $370 millions in 2019 to 670 million dollars in the previous financial year.
It has now established a clear path towards profitability, as the net loss dropped from $144,000,000 in 2021 down to only $32.6,000,000 in the last twelve months. Management hopes this year will be its first profit-making one
WRBY continues to grow
Warby Parker’s latest results show that it is still experiencing strong revenue growth, even in an industry with consumers who are suffering. The company’s revenue grew by 13.3% in the third quarter to $192 millions, as its active customers grew by 5.6%.
Warby Parker’s rapid growth can be attributed to its low-cost glasses. However, the results of its business show that customers are still willing to pay $195 for more expensive frames. In the third quarter, average revenues per customer increased to $305.
Warby Parker is seeing more customers than ever before. The number of active Warby Parker customers has increased to 2,43 million, up from 2.3 millions a year ago.
Warby Parker will have a revenue of $765 to $768 millions in 2024, and an adjusted EBITDA of $73million. Analysts predict that in 2025, its revenue will reach $868 million and its earnings-per-share (EPS) increase from 23 to 32 cents.
There is therefore a chance that the business will do well over the coming years, as they gain market share with young people.
Warby Parker Stock Price Analysis
TradingView WRBY Chart
WRBY’s share price, as shown on the daily chart, reached a low of $9.56 at March 2023. It then recovered to $27 in this year. Recently, it has formed a double top chart pattern. This is a common bearish sign.
Positively, the stock has maintained a position above both the 100-day and 50-day moving indices. This is a good sign. The stock’s outlook is therefore bullish. Next, we will be watching the psychological level of $30, followed by the price target of $35. The view will become more pronounced if the price of the stock exceeds the high for the current year, which is $27.
As updates occur, this post Warby Parker Stock Price Analysis as Website Traffic Jumps could be updated.
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