Why Shares of Savers Value Village Dipped This Week
Shares of Savers Value Village (NYSE: SVV) slipped over 10% this week, according to data provided by S&P Global Market Intelligence. The recent entrant to the public markets had no big news to note, which means it is likely just suffering from the post-IPO malaise. At one point this week, shares of the stock were down over 15% before recovering on Friday.
Savers Value Village is a for-profit thrift store operator in the United States. People give the stores their old and used items that Value Village then sells to shoppers looking for big discounts. It went public earlier this summer with a market cap of $4 billion.
Today, its market cap is down to around $3 billion with the stock sinking over 20% in the last month. But there has been no recent news from the company, so why is the stock sinking? It's simple. On average, recent IPOs underperformed the broader market, with 32% of new stocks trailing the market by more than 10% in the first three months after going public.
Source Fool.com
