Bay Area consignors The RealReal and ThredUp and styling service Stitch Fix all saw their stock jump at least 16% on Tuesday following news that Redwood City-based Poshmark agreed to be acquired for $1.2 billion by Korean internet giant Naver. Analysts who follow the sector noted that Poshmark's acquisition price — about quadruple its projected gross profit for fiscal year 2022 — could lead to a stock price "floor" for competitors. Poshmark (NASDAQ: POSH) closed up 13% Tuesday to $17.71, near the $17.90 Naver agreed to pay.
Shares of clothing e-commerce company Stitch Fix (NASDAQ: SFIX) soared on Tuesday after rival company Poshmark was acquired for $1.2 billion. As of 12:15 p.m. ET, Stitch Fix stock was up 15%. Poshmark has generated less than $350 million in trailing-12-month revenue, whereas Stitch Fix has generated over $2 billion.
Investors this year have had a bleak outlook on Stitch Fix (NASDAQ: SFIX) stock. Management tried to put a positive spin on the declines, which are partly due to wider headwinds affecting many e-commerce stocks, but even an eventual rebound in the industry might not be enough to turn Stitch Fix back into a growth stock. Stitch Fix twice lowered its annual sales guidance for fiscal 2022, but growth was still disappointingly weak through late July.