Wayfair Inc (NYSE: W) shares jumped 5.03% in pre-market trading on Friday, as investors digested the company's first-quarter 2025 earnings report and a flurry of analyst price target adjustments.

The online home goods retailer reported flat year-over-year net revenue for Q1, with a 10.9% decline in the international segment offset by a 1.6% growth in the US business. Wayfair's gross margin came in at 30.7% of net revenue, influenced by non-operational tailwinds and investments in customer experience. The company also reported an adjusted EBITDA of $106 million, representing a 3.9% margin on net revenue.

Following the earnings release, several analysts adjusted their price targets for Wayfair stock, reflecting mixed sentiment. Truist Financial raised its target to $40 from $36, maintaining a Buy rating. However, other firms lowered their targets: BMO cut to $38 from $55, Mizuho reduced to $50 from $60, and Bernstein decreased to $35 from $45. Despite these reductions, the maintained Buy ratings from some analysts suggest confidence in Wayfair's long-term prospects.

The pre-market surge comes amidst a broader market rally, with the NASDAQ Composite Index and Dow Jones Industrial Average both showing gains. Investors appear to be focusing on Wayfair's ability to maintain revenue stability and improve profitability in a challenging economic environment, as well as the company's strategic initiatives to strengthen its financial position and optimize operations.