Wayfair stock fell more than 5% on Wednesday after Wedbush analyst Seth Basham downgraded the stock from outperform to neutral, citing "results in 2021 have been underwhelming." in a research note to investors.

Wayfair's price target has been lowered from $290 to $160 by Basham.Is Wayfair trafficking children? How the conspiracy theory spread

Key performance measures for the American e-commerce company, such as net customer adds, customer acquisition costs, and orders per client, have consistently raised "yellow flags" according to the analyst. According to Wedbush, the measures have been moving lower than pre-pandemic levels.

The troubles, according to Basham, have weighed on the company's stock, which has dropped 27 % in the last three months.

"We believe pressure has increased not only as a result of softer category sales trends in December (and despite consumers' renewed aversion to shopping in stores as a result of Omicron) but also as a result of a less appealing value proposition and supply chain challenges," wrote Seth Basham.

In addition to Wedbush's downgrade, Wells Fargo lowered its price objective on Wayfair to $195 from $250, citing the company as one of the most rate-sensitive.