What Happened?
Shares of online fashion resale marketplace ThredUp (NASDAQ:TDUP) jumped 44.7% in the afternoon session after the company reported strong first quarter 2025 results which beat analysts' sales, earnings and EBITDA estimates. In addition, it provided optimistic full-year revenue guidance that blew past analysts' expectations. What stood out was the flood of new shoppers, up nearly 95%, making it the best quarter ever for signups. This helped push sales up 10% from the previous year. On the other hand, the number of orders missed. Still, we think this was a solid print.
The shares closed the day at $6.56, up 48.1% from previous close.
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What The Market Is Telling Us
ThredUp’s shares are extremely volatile and have had 72 moves greater than 5% over the last year. But moves this big are rare even for ThredUp and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 14.6% as investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
ThredUp is up 365% since the beginning of the year, and at $6.56 per share, has set a new 52-week high. Investors who bought $1,000 worth of ThredUp’s shares at the IPO in March 2021 would now be looking at an investment worth $328.00.
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