Warby Parker: Not Worth Its Premium As Growth Slows (Rating Downgrade)

Gary Alexander33.4K FollowersFollow5ShareSavePlay(8min)CommentsSummaryWarby Parker is downgraded to Sell due to an unattractive valuation and slowing growth.WRBY trades at a steep 23.5x EV/FY26 EBITDA, despite guidance for only 10-12% revenue growth and single-digit customer gains.Gross margins are declining, and adjusted EBITDA margin improvement is modest, limiting upside potential.Upside risks exist from AI glasses and tariff removal, but competitive threats and execution doubts persist. bgwalker/iStock Unreleased via Getty Images The stock market in 2026 has been a painful one to invest in, but when we take a step back, it should be a value investor’s dream. A plethora of high-quality enterprise software businesses are now suddenlyThis article was written byGary Alexander33.4K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.