Why Poshmark Stock Tumbled as Much as 34% Today
Shares of Poshmark (NASDAQ: POSH), which describes itself as a social marketplace for new and secondhand style, dropped precipitously out of the gate on Wednesday, declining by 34% at one point in early trading. About an hour into the trading day, the shares were still lower by around 26%, showing that much of the initial pessimism was lingering. The reason for the drop was the company's earnings update, released after the close on Tuesday.
In the third quarter of 2021, Poshmark sold $442.5 million worth of goods, up 18% over the same quarter in 2020. The number of active buyers on its system rose 17%. Revenue of $79.7 million was up 16% year over year. So far, the numbers aren't all that bad.
However, the company lost $0.09 per share in the quarter, down from a profit of $0.44 in the third quarter last year and analyst expectations of just $0.07 of red ink. Investors don't like it when companies miss analyst projections.
Source Fool.com
