Why Is Everyone Talking About Stitch Fix Stock?
Stitch Fix (NASDAQ: SFIX) recently made the headlines for all the wrong reasons. The online apparel retailer posted a disastrous fiscal third-quarter earnings report after the market close on June 9, and its stock sank 19% to an all-time low the following day.
A barrage of analyst downgrades exacerbated that pain, and its stock now trades nearly 60% below its initial public offering (IPO) price and more than 90% below its all-time high from last January. Let's review the business, why the stock was crushed, and if there's any hope left for Stitch Fix bulls in this unforgiving market.
Stitch Fix isn't a traditional apparel retailer. Instead of letting customers choose their own clothes, the company's platform gathers data on its shoppers with an online survey and artificial-intelligence algorithms. It then charges a "styling fee" of $20 before curating bundles of five items for customers.
Source Fool.com
