Naver Completes Acquisition of Poshmark for $1.2 Billion
January 9, 2023
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Poshmark Intrinsic Value – POSHMARK ($NASDAQ:POSH) is a leading online fashion marketplace that connects shoppers and sellers from around the world. Through its app and website, POSHMARK offers a wide variety of new and second-hand clothes, shoes, and accessories for men, women, and children. On Thursday, Naver Corporation announced that it has completed its acquisition of POSHMARK. The deal, which was announced in October of last year, was valued at $1.2 billion. This acquisition marks a major milestone for both companies as they look to expand their reach and strengthen their position in the digital fashion space. Naver’s acquisition of POSHMARK is an exciting development as it will enable the companies to combine their resources and expertise in order to create a more powerful fashion platform. Naver’s vast experience in e-commerce, digital payments, and e-commerce infrastructure will help POSHMARK reach new heights in the fashion industry.
The two companies are also looking to leverage Naver’s existing customer base to make POSHMARK even more accessible to shoppers around the world. The acquisition comes at an important time for POSHMARK as the company seeks to expand its presence in the fashion industry. With the added resources and support from Naver, POSHMARK will be able to further its mission of creating a platform that helps shoppers discover unique and affordable fashion items from around the world. It will also be able to increase its focus on providing shoppers with personalized experiences by leveraging Naver’s AI capabilities. The acquisition of POSHMARK by Naver signals a major shift in the digital fashion space and is sure to have a lasting impact on the industry. With its newfound resources, POSHMARK is well-positioned to become a major player in the online fashion market and will continue to lead the way in providing shoppers with access to stylish fashion items from around the globe.
Stock Price
On Friday, Naver announced the completion of its acquisition of Poshmark for $1.2 billion. Poshmark is a leading social commerce platform that enables users to buy and sell fashion and lifestyle items. The news had a notable effect on the stock market, as POSHMARK stock opened at $17.9 and closed at $17.9. This acquisition marks a major milestone in Naver’s expansion into the United States. Naver is one of the largest Internet companies in South Korea and has been looking to expand its presence in international markets. With this acquisition, Naver will gain access to Poshmark’s large user base and its data-driven insights into consumer behavior. The acquisition also signals a new era for Poshmark.
With the resources of Naver behind them, Poshmark will be able to further expand its operations and innovate new features for its platform. The company may also look to expand into new markets and introduce new products. The acquisition is expected to be beneficial for both companies. Naver will gain access to Poshmark’s innovative technology and user base, while Poshmark will be able to leverage Naver’s resources to further its growth. This deal marks an exciting new chapter for both companies and is likely to have a major impact on the e-commerce industry in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Poshmark. More…
| Total Revenues | Net Income | Net Margin |
| 352.63 | -75.22 | -20.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Poshmark. More…
| Operations | Investing | Financing |
| -0.96 | -8.21 | 3.84 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Poshmark. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 619.6 | 223.75 | 5 |
Key Ratios Snapshot
Some of the financial key ratios for Poshmark are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.0% | – | -21.7% |
| FCF Margin | ROE | ROA |
| -0.7% | -12.0% | -7.7% |
VI Analysis – Poshmark Intrinsic Value Calculator
With the help of VI app, a simplified analysis of POSHMARK can be made. According to VI Line, the fair value of POSHMARK’s share is estimated to be around $26.9. Currently, the stock is trading at $17.9, implying a 34% undervaluation of the company. The company’s financial performance and competitive landscape can be studied to determine if the undervaluation is justified or not. This indicates potential for long term growth, even though it is trading below its fair value. The competitive landscape of POSHMARK also needs to be evaluated to determine the true value of its stock. The company faces competition from various marketplaces like eBay, Amazon and Etsy, who are all vying for market share. POSHMARK has managed to differentiate itself with its focus on social media and its unique online community which appeals to many customers. All these factors suggest that POSHMARK’s stock is currently undervalued and should be considered for investment. The company’s fundamentals indicate it has great potential for long term growth, and investors should consider taking advantage of the stock’s undervaluation before it reverts back to its fair value. More…
VI Peers
The company competes with Mercari Inc, Solo Brands Inc, and Zalando SE.
– Mercari Inc ($TSE:4385)
Mercari is a Japanese e-commerce company headquartered in Tokyo and founded in 2013. The company operates in Japan and the United States. Mercari is a marketplace app that allows people to buy and sell new and used items. As of March 2021, Mercari has over 100 million registered users and has sold over 10 billion items.
Mercari went public in 2018 and is listed on the Tokyo Stock Exchange. The company has a market capitalization of over 461 billion yen as of March 2021. Mercari has a negative return on equity, meaning that it has not been profitable in recent years. The company is investing heavily in marketing and expansion, which has led to large losses.
– Solo Brands Inc ($NYSE:DTC)
Solo Brands Inc. is a holding company that operates through its subsidiaries. The company focuses on the foodservice and food distribution businesses. It offers a range of products, including canned fruits and vegetables, frozen fruits and vegetables, juices, sauces, and soups. The company also provides a range of services, including foodservice distribution, foodservice procurement, and foodservice logistics.
– Zalando SE ($LTS:0QXN)
Zalando SE is a German multinational fashion e-commerce company headquartered in Berlin, Germany. The company was founded in 2008 and offers clothing, shoes, and other fashion items. As of 2022, Zalando SE has a market cap of 7.79B and a ROE of 4.78%. The company is one of the leading fashion e-commerce companies in Europe and has a strong presence in Germany, Austria, Switzerland, and the Netherlands.
Summary
Poshmark is a leading social commerce platform for fashion, recently acquired by Naver for $1.2 billion. Poshmark provides an online platform for people to buy and sell new and used clothing, accessories, and beauty products. The acquisition is expected to further accelerate Poshmark’s growth and provide Naver with access to a vast customer base.
