Wayfair (NYSE: W) shares surged 5.75% in pre-market trading on Friday, as investors digested the company's better-than-expected 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, 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. These results demonstrated Wayfair's ability to maintain revenue stability and improve profitability in a challenging economic environment.

Following the earnings release, several analysts adjusted their price targets for Wayfair stock, reflecting mixed sentiment. While some firms like BMO, Mizuho, and Bernstein lowered their targets, others such as Truist Financial raised their target to $40 from $36, maintaining a Buy rating. The pre-market surge comes amidst a broader market rally, with investors focusing on Wayfair's strategic initiatives to strengthen its financial position and optimize operations.