WRBY just posted its biggest single-week gain in years. The stock rose 28% this week and closed Friday at $29.55 — up 34% on the day after the Q1 2026 print landed. A beat on revenue, reaffirmed full-year guidance of $959M–$976M, and an AI glasses launch teased for later in 2026 drove the surge. That combination of hard fundamentals and a product narrative left short sellers scrambling.
The short-side picture is now split between what the data says and what the price is doing. Short interest slipped only modestly over the week — down about 2.9% to roughly 10.3% of free float, from a one-month high near 11.2%. That's still a meaningful position. Shorts added into April's weakness and didn't fully exit into Thursday's explosion. The borrow market stayed relaxed throughout: cost to borrow crept up to 0.50% from 0.42% a week ago, still near historically cheap levels. Availability remains comfortable, with the lending pool nowhere near strained — utilization is running at just 24%, well below its 52-week peak of 30%. Shorts can add or cover with little friction. The ORTEX short score eased to 59 from around 61 at end-April, reflecting the modest position reduction, but the reading still points to an above-average short setup.
Options traders were slightly more cautious heading into the print. The put/call ratio climbed to 0.77 — close to two standard deviations above its 20-day average of 0.71 — suggesting some defensive hedging was already in place before the earnings catalyst hit. That defensive positioning collapsed quickly once the numbers came out. The 52-week PCR range runs from 0.21 to 3.88, so the absolute level isn't extreme; this was measured caution, not outright fear.
The Street moved in the same direction as the price. BTIG raised its target to $34 from $32 on May 7, maintaining Buy. UBS lifted its target to $27 from $25 the following day, holding Neutral — a more defensive acknowledgement that the move happened, not an endorsement of chasing it. Piper Sandler also reiterated Overweight in the wake of the earnings release. The consensus price target now stands at $29.75, which the stock has already surpassed at $29.55. Bulls lean on the omnichannel momentum, the AI glasses optionality, and what they see as a durable shift in the mid-market eyewear category. Bears point to competition from established players, the still-demanding valuation — the P/E has expanded to 50x on a trailing basis, up more than 10 points over the past month — and the reality that a 39% one-month move prices in a lot of execution. The EV/EBITDA multiple, now at 24.8x, has similarly re-rated by about 4.5 turns in 30 days.
The institutional picture adds a layer of nuance. FMR (Fidelity) is the largest holder at 12.4% of shares, having added aggressively in the period through February. JP Morgan Asset Management built a 5.4% position, adding 1.6 million shares in the quarter to March. On the other side, the two co-CEOs — Neil Blumenthal and David Gilboa — have been steady sellers. Blumenthal sold shares across four sessions in April at prices between $24 and $25, collecting roughly $2.5M. Gilboa sold in early March near $27. Neither trade is large relative to their total holdings, and the 90-day insider net (including awards) is positive in share terms. But founder sales into a rising stock are worth noting context for, not reading alarm into.
The next earnings event is flagged for June 8. What to watch before then: whether short interest continues to edge lower as trapped shorts cover, or whether the 10%-plus float short position finds renewed conviction at the new, higher price — and whether the AI glasses story generates tangible product news to support the valuation re-rating.
See the live data behind this article on ORTEX.
Open WRBY on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
