ThredUp Collapses On Q2 Report, Shares Have Further To Fall

ThredUp Inc.'s ( TDUP ) stock price collapsed during Thursday trading as the operator of an online resale platform missed its earnings estimates. I am initiating coverage with a 'sell' rating on the back of the Q2 This article was written by Eborose Capital 1.2K Followers Follow I've been investing for over a decade, with a primary focus on U.S. growth stocks, alongside coverage of UK-listed names. I'm particularly drawn to inflection point investing, identifying businesses at a turning point in their growth trajectory, margin profile, or competitive position, before that shift is fully reflected in the share price. I tend to invest with a long-term horizon in mind, but I will also consider short-term event driven opportunities.

TDUP's net loss exceeded expectations by 40%, triggering a near 50% stock price collapse and raising concerns about profitability timelines. Management cut full-year revenue guidance by 2.1%, citing softness among sub-$60k income consumers—a segment which is still material to results. Despite healthy liquidity, TDUP remains expensive at 2.28x fwd EV/Sales; further downside is likely unless future quarters deliver clear beats.