WRBY Should I Buy
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Warby Parker (WRBY) is not a strong buy at the moment for a beginner investor with a long-term strategy. While there are some positive catalysts such as revenue growth and the AI glasses opportunity, the company's recent financial performance, insider selling trends, and lack of strong proprietary trading signals suggest a cautious approach. Holding the stock or waiting for a better entry point would be more prudent.
The technical indicators show mixed signals. The MACD is positive but contracting, RSI is neutral at 45.847, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot level of 24.8, with key resistance at 27.371 and support at 22.229. However, the recent regular market drop of -7.63% and pre-market decline of -2.57% indicate short-term weakness.
Analysts have raised price targets, with some projecting up to $35, citing growth opportunities in AI glasses and higher-margin categories.
Revenue increased by 13% YoY in FY2025, with a projected growth of 10%-12% for
BlackBarn Capital increased its stake in WRBY, reflecting institutional confidence.
Insiders are selling heavily, with a 248.24% increase in selling activity over the last month.
Net income and EPS declined YoY in Q4 2025, and gross margin also dropped.
The options market shows bearish sentiment, with a high put-call volume ratio.
In Q4 2025, revenue increased by 11.19% YoY to $211.97 million, but net income dropped by -13.44% to -$5.95 million. EPS declined by -16.67% to -0.05, and gross margin fell to 52.39%, down 3.14% YoY. While revenue growth is promising, profitability metrics are deteriorating.
Analysts have mixed views. UBS maintains a Neutral rating with a $25 target, while TD Cowen and Baird are more optimistic with targets of $30 and $35, respectively. Analysts highlight growth opportunities in AI glasses and higher-margin categories but acknowledge near-term headwinds in the core business.
