The future is used!
Poshmark Inc, the social e-commerce platform where people buy and sell secondhand goods, is off to an impressive start as a publicly traded company. Shares of the Redwood City, California, firm more than doubled after its initial public offering on Thursday, a sign that investors are eager to cash in on the popular online resale trend while also capitalizing on the broader red-hot market for tech-focused IPOs.
In midday trading, the stock price was hovering at just over $100 a share, up from an offering price of $42. Its opening-day pop follows a similar trajectory seen by Affirm Holdings, the online payments company that went public yesterday with a share price of $49 and soared over 80%. Both firms listed on the tech-heavy Nasdaq.
Approaching 10 years old, Poshmark is led by CEO Manish Chandra and counts tennis great Serena Williams as a member of its board of directors. As our Elizabeth Segran wrote in 2019, the platform stands out among its competitors, such as TheRealReal and ThredUP, by infusing the sales process with social media-like functionalities that keep users on the site longer. The longer people stay, the more they buy.
Before its IPO, Poshmark was valued at about $3 billion.