Artificial intelligence (AI) is about to be able to design your living room. Wayfair (NYSE:W) is one of the latest companies to join the AI craze and implement it into its services. The e-commerce retail sells furniture and other home furnishing products, but now it is taking its operations a step further by introducing a tool called Decorify AI. This generative AI feature is described as a “virtual room restyler,” allowing users to see how their rooms would look with various Wayfair items. And while The Verge describes it as “clumsy,” it acknowledges that the tool certainly has the potential to help transform the industry. As W stock is rising today, it is clear that the market is responding well to the new product debut.
Does this mean that Wayfair can be counted among AI stocks with the potential to ride this wave to new heights? Let’s dive deeper into the company’s latest development.
What’s Happening With W Stock
Conditions have been very volatile today, and W stock cannot seem to decide to be up or down. As of this writing, it is down 0.30% for the day, though it might try and rally back up again. After a week of trending downward, the stock could certainly use a positive catalyst. However, it has performed well throughout the past two quarters. It has risen almost 24% after market conditions pushed it down throughout early 2023.
Many experts aren’t too bullish on W stock. It currently holds a moderate buy consensus from Wall Street analysts, but multiple experts have issued “sell” and “hold” ratings recently. InvestorPlace contributor Will Ashworth recently named it one of the best stocks to short, citing the company’s inability to consistently generate revenue. However, this new catalyst could be precisely what the company needs to shake off negative energy and start demonstrating sustainable growth. As The Verge reports:
“Remember those augmented reality shopping app features that let you plop furniture down in your house using your smartphone’s camera? This ain’t that — Decorify won’t show you renders of actual, existing furniture within your actual room. Wayfair uses an AI model to create new imagery, so it’s going to show you weird reflections on curtains, plants sitting on day beds, and furniture that doesn’t quite make sense, and it might just decide your room is twice the size it actually is.”
The outlet makes clear that the new AI tool is still evolving and isn’t perfect. But if Wayfair can continue making progress with it, Decorify could certainly give it a significant edge over competitors. For homeowners undergoing a remodel, it will likely be a useful and enticing resource. While other companies are rolling out similar tools, Wayfair doesn’t charge customers to use it, thereby giving customers even more incentive to give it a try. This could help increase sales in the coming year, boosting W stock considerably.
Why It Matters
As The Verge also notes, Wayfair has big plans for Decorify, which runs on an open-source model. It clearly is just getting started, and if its progress continues, it can undoubtedly join the companies riding the AI wave to the top. Plenty of experts have written W stock off, but its recent progress is worth noting. Now W stock can offer investors exposure to the booming AI market, which means a tempting new reason to bet on it.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
