Why The RealReal Stock Plummeted 26% at the Open Today
Shares of The RealReal (NASDAQ: REAL), which offers luxury consignment services, lost roughly a quarter of their value at one point in the first hour of trading on May 11. The stock managed to pare the steep initial decline some, as it was down by "just" 17% at 11 a.m. EDT. There were likely two factors behind the negative mood here: market trends and the company's earnings release after market close on May 10.
A good portion of The RealReal's business is handled over the internet, even though it has a handful of physical locations. So, in many ways, it can be viewed as something of a technology play even though, at the end of the day, it's really just a consignment retailer. Over the last couple of trading sessions investors have been selling technology names, with a notable decline today highlighted by the technology-heavy Nasdaq Composite leading the broader market's early morning drop. So, a portion of The RealReal's dramatic price decline is probably related to bigger-picture market psychology. But not all of it.
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Source Fool.com
