Poshmark Explodes Over 140% on First Day of Trading

Poshmark, which was founded in 2011 to create a marketplace for sellers and buyers of second hand clothing, shoes, jewelry and other products, had its market debut this week.

The company opened its first day of trading on the NASDAQ on Thursday and began trading at $97.50 a share under the ticker symbol POSH.

Poshmark had priced its IPO at $42 a share on Wednesday, which had given it an initial valuation of over $3 billion.

The company tweeted ahead of the open, “Today, we celebrate a milestone in the Poshmark journey together. Thank you to our vibrant community, millions of people across the U.S. and Canada, for choosing Poshmark as the place to shop, sell, and thrive. Join us as we ring the bell together.”

As of September 30, 2020, Poshmark had 31.7 million active users, 6.2 million active buyers, and 4.5 million active sellers.

According to an S-1 filing from the company, Poshmark had its first quarter of profitability for the three months ended June 30, 2020.

The company is led by CEO Manish Chandra and has Serena Williams as a member of its board of directors.

In a Zoom interview on Thursday with Barron’s, Chandra said the company is riding three trends: the acceleration of e-commerce; consumers embracing social selling; and the growing market for second-hand goods. He sees a huge opportunity, and one the company is only just beginning to tap.

“We’re simplifying the selling experience, all the way from listing to shipping,” said Chandra, while providing buyers both “simplicity and assortment.”

In its IPO filing, Poshmark said, “We are a social marketplace that combines the human connection of a physical shopping experience with the scale, reach, ease, and selection benefits of e-commerce.”

“In doing so, we bring the power of community to buying and selling online. We created Poshmark in 2011 to make buying and selling simple, social, and fun. Pairing technology with the inherent human desire to socialize, our marketplace creates passion and personal connections among users.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.