In my Buy or Bye? series, I take a popular stock, strip away all the hype, and let you know whether you should buy now, buy later or buy never.
Today’s video showcases one of the first stock success stories of the pandemic.
This online shopping platform’s stock rocketed 302% in 2020 while brick-and-mortar retailers were closing up shop due to the COVID-19 shutdown.
And by the end of 2021, the stock was up another 23% – even as physical stores reopened and restrictions eased. In fact, it saw an increase in sellers, users, net income and revenue.
But that all unraveled by the first quarter of 2022…
This once-quintessential pandemic stock took a downward turn, hitting a 52-week low after a poor first quarter earnings report.
MarketWatch said it all…
But it doesn’t end there…
Just weeks ago, thousands of sellers on the company’s platform went on strike after the company said it was raising its transaction fee by 30%.
However, the platform’s representatives insist the strike had no material impact on sales.
Its CEO, Josh Silverman, maintains the company has a strong future ahead of it, as it stands out against a “sea of sameness” in conventional retail.
PYMNTS had this to say…
So although this online shopping platform’s merchandise sales more than doubled from $1.2 billion in the first quarter of 2020 to $2.8 billion in this year’s first quarter, its stock price has slid more than 60% year to date.
The only question that remains: Can this crafty stock rebound?
Click here to watch Nicholas’ latest video update.