Its current price gives it a valuation of just over $3 billion. In 2020, the company brought in $248 million, resulting in a $21 million profit, which was a 34% increase from 2019, when the company lost $34 million.
Poshmark was founded in 2011 by Manish Chandra in Redwood City, California. It offers an online marketplace for second-hand clothing, shoes, and accessories, earning a cut of every transaction. Thus, many are using eBay
However, Poshmark focuses on a particular niche and has gained traction among Generation Z and Instagram
These marketplaces for used items have gotten very popular in recent year and seems to fit with many people's desire to live a more sustainable lifestyle by minimizing waste. Poshmark also offers 'social commerce' features that have been successful in boosting retention and engagement.
Stock Price Outlook
Poshmark is certainly an intriguing company that should be on investors' radars. The company's stock price has been weak since its IPO due to general market conditions and potentially some profit-taking.
However, the company is one of the leaders in its niche, and marketplace stocks have a good track record of success given the potential for growth and high margins. Once, market conditions improve for growth stocks, then Poshmark has many of the characteristics of an outperforming stock.