This Business Shift Will Boost Liquidity Services' Long-Term Prospects

Liquidity Services (NASDAQ: LQDT) saw its share price lose roughly 21% in the last two trading days of last week after releasing quarterly results on Feb. 3rd. The provider of business-to-business e-commerce selling platforms focused on surplus, return, and used goods turned in decent results, but after soaring 167% last year, the stock unsurprisingly succumbed to a bit of profit-taking. 

For investors with a long-term horizon, Wednesday's report provided some tangible insight into future profitability. Recent gross margin trends visible in the fiscal first-quarter 2021 report are indicative of an important business shift that's perhaps lost in the noise of a single quarter's earnings.

Liquidity Services provides platforms to sell excess inventory and surplus merchandise, like these car wheel rims stored in a warehouse. Image source: Getty Images.

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Source Fool.com