Last Updated: 16 Sep 2024
Executive Summary
TheRealReal Inc. (REAL) is an online marketplace for consigned luxury goods. The company has a market capitalization of $291.86 million and is headquartered in San Francisco, California. REAL's stock price is currently trading at $2.79, which is below its 52-week high of $4.64. The company's financial performance has been mixed in recent quarters, with revenue growth offset by increasing losses. Analysts are mixed on the stock, with two rating it a "Strong Buy" and five rating it a "Hold."
Company Overview
REAL was founded in 2011 and has since become one of the leading online marketplaces for consigned luxury goods. The company offers a wide range of products, including clothing, handbags, jewelry, and watches. REAL authenticates all of its products and offers a money-back guarantee.
Fundamental Analysis
REAL's financial performance has been mixed in recent quarters. Revenue grew by 10.8% year-over-year in the most recent quarter, but the company's losses also widened. The company's gross profit margin has been declining in recent quarters, and its operating margin is negative. REAL's balance sheet is also weak, with the company having more debt than cash.
Technical Analysis
REAL's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for REAL is mixed. The company's financial performance has been weak in recent quarters, and the stock price has been trending lower. However, the stock is currently trading at a discount to its 52-week high, and the RSI is indicating that the stock is oversold. This suggests that the stock could be due for a rebound in the short term.
Long Term Outlook
The long-term outlook for REAL is more positive. The company is operating in a growing market, and it has a strong brand and a loyal customer base. However, the company needs to improve its financial performance in order to justify its current valuation.
Analyst Recommendations
Analysts are mixed on REAL's stock. Two analysts rate the stock a "Strong Buy," while five analysts rate it a "Hold." The average analyst price target is $3.60, which is above the current stock price.
