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Wayfair (W) Offers Support to Black Community With New Investment

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Wayfair Inc. (W - Free Report) recently announced that it is dedicating $30 million to social impact investing.

Notably, $20 million out of the total committed amount will be invested in the Black Economic Development Fund. The remaining $10 million will be used for other future investments that are yet to be announced.

We note that the latest move bodes well for the company as it focuses on enhancing diversity, and takes a stand against racial discrimination as well as economic inequality

The CEO, co-founder and co-chairman of Wayfair, Niraj Shah, said that “Our investment in the Black Economic Development Fund is part of our broader commitment to stand against racism in every form and to continuously work to foster diversity, equity and inclusion both at Wayfair and in our communities.”

Support to Black Community Gains Steam

By committing $20 million toward the support of black and minority communities, Wayfair joins the bandwagon of other companies that are also taking strong stand against racial discrimination.

In addition to Wayfair, KLA and PayPal recently invested in a bid to support black and minority-owned businesses and communities in the United States.

Moreover, companies like Bank of America and Goldman Sachs have pledged $1 billion and $10 million, respectively, to address economic inequality as well as promote racial equity.

Also, technology giants including Amazon, Microsoft and International Business Machines have taken aggressive stance against racial discrimination.

Notably, Amazon and Microsoft have implemented moratorium on police use of their respective facial recognition software in order to promote racial equity.

Further, IBM will reportedly no longer sell or develop facial-recognition software in an effort to curb racial discrimination. Moreover, the company has opposed the use of such technology for mass surveillance and racial profiling.

Given the scenario, we believe Wayfair’s latest move is likely to aid its brand reputation.

Zacks Rank & Stocks to Consider

Currently, Wayfair carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Analog Devices, Inc. (ADI - Free Report) , NXP Semiconductors N.V. (NXPI - Free Report) and ON Semiconductor Corporation (ON - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Analog Devices, NXP Semiconductors, and ON Semiconductor is currently projected at 12.3%, 10%, and 41.5%, respectively.

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