Poshmark falls sharply after missing bottom-line expectations

Trending News 🌥️

Poshmark($NASDAQ:POSH) fell sharply in Thursday’s extended trading after missing bottom-line expectations. For the second quarter, the Redwood City, California-based eCommerce company posted a narrow miss on EPS while only barely beating revenue expectations. Additionally, free cash flow ticked in at negative $3.5M for the quarter compared to $25M for the comparable period in 2021. This miss on expectations is likely to affect POSHMARK’s market and earnings in the long term. The company’s stock price has already taken a hit, and it may take some time for POSHMARK to regain investor confidence. In the meantime, POSHMARK will need to focus on executing its business plan and meeting its financial goals in order to prove to the market that it is still a viable investment.

Market Reaction

Poshmark, an online marketplace for used fashion, fell sharply on Thursday after missing bottom-line expectations. The stock opened at $12.8 and closed at $12.9, up by 1.3% from prior closing price of 12.7. Poshmark allows users to buy and sell used clothing and accessories. Poshmark has been struggling to turn a profit, and the miss is a setback for the company. Shares fell sharply in after-hours trading on Thursday.

VI Analysis

According to VI’s Risk Rating, POSHMARK is a medium risk investment in terms of financial and business aspects. The company’s fundamentals reflect its long term potential, but there are some potential risks in the business and financial areas that investors should be aware of.

Summary

While Poshmark may have missed bottom-line expectations, it still managed to earn a profit and its stock price rose slightly the following day. This could be due to investors believing that the company has potential and is worth investing in despite its recent setbacks.