Stitch Fix Inc (NASDAQ:SFIX) stock was soaring on its first day of trading since its IPO on Thursday.
Source: Stitch Fix
During the IPO yesterday, Stitch Fix Inc was valued at $15 per share. However, the stock opened on the NASDAQ today at $16.90. It has continued to rise since the opening. This is a positive sign for the company, which offers a subscription box service with a focus on fashion.
SFIX stock is up today despite its IPO yesterday not performing as well as expected. The company was hoping to value its stock between $18 and $20 during its IPO. However, concerns from investors led to the $15 per share price.
The IPO price of $15 per share had Stitch Fix Inc raising $120 million. With the opening price of $16.90, the company is now valued at $1.63 billion. This is less than the previous valuation of the company, which was sitting at $2 billion.
Stitch Fix Inc was originally expecting its IPO to value the company between $3 billion and $4 billion. The problem with the high estimate was concerns about other subscription box services. Blue Apron Holdings Inc (NYSE:APRN) is one of these similar services. Its stock is now down to a third of its value from its IPO earlier this year.
Stitch Fix Inc’s IPO may not have gone as well as expected, but at least it isn’t keeping SFIX stock down today. SFIX stock was up 12% as of noon Friday. We’ll learn more about the future of SFIX after it starts releasing earnings reports as a public company.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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