Secondhand luxury marketplace The RealReal (NASDAQ: REAL)
will be reporting earnings this Monday after market hours. Here’s what investors should know.
A number of stocks fell in the morning session after markets became increasingly wary of high valuations following a significant AI-driven rally. The tech-heavy Nasdaq fell approximately 1.4% as a wave of caution swept through the market.
Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around.
Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
A number of stocks jumped in the afternoon session after optimism surged over a potential trade truce between the U.S. and China. Reports of progress in trade negotiations ahead of a scheduled meeting between the two nations' presidents fueled investor confidence. An agreement would likely ease trade tensions and reduce or remove tariffs that have created economic uncertainty and higher costs for many multinational corporations. Also, optimism improved on expectations that the Federal Reserve will cut interest rates later in the week, especially after recent data showed inflation wasn't heating up as much as expected.
Simply put, good news on trade, and the promise of lower borrowing costs created a powerful rally.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at online marketplace stocks, starting with The RealReal (NASDAQ:REAL).
Shares of secondhand luxury marketplace The RealReal (NASDAQ: REAL)
jumped in the afternoon session after UBS raised its price target on the stock to $10.50 from $8.00. The investment firm kept its rating on the stock at "Neutral." UBS noted that its research pointed to continued sales momentum for the luxury consignment retailer in the third quarter. However, the firm also believed this positive performance was already factored into the current stock price. The stock had already gained 61% since the company's second-quarter earnings report, performing much better than the broader S&P 500 index. UBS forecasted third-quarter results that were in line with market expectations and anticipated that the company would keep its full-year guidance the same.
What a time it’s been for The RealReal. In the past six months alone, the company’s stock price has increased by a massive 96.9%, reaching $10.18 per share. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
A number of stocks jumped in the afternoon session after investors' concerns about US-China trade tensions were eased by President Trump's more conciliatory tone over the weekend.
