Wayfair's shares plummeted after reporting second-quarter earnings that fell short of Wall Street expectations, with revenue down 2% year-over-year to $3.12 billion and a loss of $42 million. CEO Niraj Shah compared the current downturn in home goods demand to the declines seen during the 2008 financial crisis, attributing it to cautious consumer spending amid high interest rates and inflation. Despite some profitability improvements, including a profit of $0.47 per share and a 43% increase in free cash flow, Wayfair has been heavily reliant on repeat customers, who are placing fewer orders. The company has laid off significant portions of its workforce and leaned into discounting strategies to attract customers. Analysts remain concerned about the sustainability of Wayfair's stock price given its recent performance and the broader economic challenges. There is cautious optimism as Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts in the future, which could help stimulate consumer spending.