Why ThredUp Stock Cratered by 23% at the Open Today

Shares of ThredUp (NASDAQ: TDUP), an online retailer of secondhand clothing, fell sharply in early trading on March 8, losing as much as 23% of their value in the first few minutes of trading. By roughly 10:30 a.m. ET the stock had pared that loss dramatically, but was still off by around 6% or so. The company's fourth-quarter 2021 earnings release, released after the market closed on March 7, was the big problem. There was good news and bad news.

On the top line, ThredUp reported fourth-quarter 2021 revenue of $72.9 million, with full-year 2021 revenue of $251.8 million, up 68% and 35%, respectively. On the bottom line, the company lost $17.9 million for the quarter, slightly worse than the $17 million it lost in the final quarter of 2020. For the full year the retailer's loss tallied up to $63.2 million, notably worse than the $47.9 million it lost in the same period of 2020. The company's initial public offering (IPO) was held in March 2021, so financial results don't really have comparable periods for per-share numbers. That said, in the fourth quarter the company's $0.18-per-share loss was worse than the $0.16 Wall Street had been expecting, even though the company's top line actually beat expectations. Investors don't like it when companies miss earnings.

Image source: Getty Images.

Source Fool.com