was incorporated in 2009 and is headquartered in Oakland, California.į is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. Its platform enables consumers to buy and sell primarily secondhand women's and kids' apparel, shoes, and accessories. , together with its subsidiaries, operates an online resale platform in the United States and internationally. This would suggest that ThredUp's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns). The market (NASDAQ average) beta is 1, while ThredUp's is 1.0736. volatility (beta: 1.00) Low Highīeta is a measure of a share's volatility in relation to the market. A popular way to gauge a stock's volatility is its "beta". Over the last 12 months, ThredUp's shares have ranged in value from as little as $0.731 up to $4.39. We're not expecting ThredUp to pay a dividend over the next 12 months. TTM: trailing 12 months ThredUp share dividends If consumers decide to shy away from secondhand goods, it will impact ThredUp’s bottom line. While this is predicted to continue, consumer preferences remain a risk. Changing consumer preferencesThere’s a strong drive towards more sustainable practices, with secondhand clothing tipped to rise because of this.More competition could pose a threat to the company’s supply.Īs the company itself said in its S1 filing, “our success depends on our ability to cost-effectively attract high-quality secondhand items by attracting new sellers and retaining existing sellers, such that they choose ThredUp to list their items.” But supply is a potential risk in the future. Supply chain issuesThe company relies on secondhand items being transacted through its platform and has a strong resale ecosystem.In a rapidly changing environment, ThredUp remains vulnerable to new competition. New competitionWhile it is one of the leaders in the secondhand clothing market, ThredUp is certainly at risk of new competition entering the marketplace.There are 3 main risks for ThredUp moving forward. With 1.3 million customers, it has room to grow. While competition and slowing growth could become problematic in the future, the company has posted a 34% increase in profit over the last 12 months. Macro-economic factors could also play a role, with rising interest rates reducing consumer spending, which in turn could encourage more Americans to buy second-hand goods. Consumers are looking to reduce their environmental impact, which could be a key driver for ThredUp. Having gone public in 2021, the company has many tailwinds, which are only likely to increase as the world changes. The company has several competitive advantages, including being a leader in this space, having leading technology and the perceived image of doing good in the world. It’s an online resale clothing business, targeted at women and children who want to buy new items for less.
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