Digital mark Poshmark (NASDAQ: POSH) delivered a strong performance on its first trading day on Thursday. The letter was on the wall, as the company originally intended to offer shares in the range of $ 35 to $ 39, but the enthusiasm of investors towards the excellent second-hand trader led the series on the eve of the IPO. increase. Poshmark’s share ended up being $ 42, but even at the higher sticker price, the company apparently underestimated demand.
Investors still wanted to ask for shares before they started trading, which raised the opening price to $ 97.50, 132% higher than the offer price. Shares began trading around 11:42 a.m. EST on Thursday, climbing out of the gate and never looking back. The stock closed the trading day at $ 101.50 and reached a spectacular 142% on its first trading day.
Image Source: Getty Images.
Poshmark’s website facilitates the purchase and sale of second-hand fashion and luxury items, including clothing, shoes and jewelry. What sets the e-commerce market apart from the competition, however, is the social aspect of the platform. It encourages socialization, which helps the online bazaar to promote great engagement and increased sales.
The company reported that in 2019, active users spent an impressive 27 minutes a day on their market to browse, shop, buy, sell, and connect with other users, making 20.5 billion social interactions resulted in.
The strategy seems to be working. In 2019, Poshmark generated revenue of approximately $ 205 million, which is 38% higher than a year-on-year year, although the net loss weakened by 236% to $ 49 million.
However, it looks like the company has reached a turning point this year. During the first nine months of 2020, revenue grew 28% year-over-year to $ 193 million, and Poshmark was able to make a profit, with a net income of $ 21 million, compared to a loss of approximately $ 34 million during the previous year.
Given Poshmark’s solid growth and recent profitability, investors should add this second-hand market to their watch list.