Why The RealReal Stock Dropped Like a Rock Today
Shares of luxury resale marketplace The RealReal (NASDAQ: REAL) dropped like a rock on Tuesday after the company released financial results that fell short of analysts' expectations. As of 1:40 p.m. EDT, the stock was down a whopping 18% and is now down 54% from its 52-week high.
For the second quarter of 2021, The RealReal's revenue was up 83% year over year to $105 million. This revenue growth was propelled by strong gross merchandise volume (GMV) growth of 91%.
While the GMV was a record for the company, the annualized growth rate needs to be kept in context. GMV was down 20% in the same quarter last year, meaning GMV is up just 53% over the past two years. Moreover, analysts expected the company to do roughly $3 million more in revenue in Q2 than it actually did.
Source Fool.com
