What Happened?
Shares of online fashion resale marketplace ThredUp (NASDAQ: TDUP) jumped 2.7% in the morning session after the company presented a bullish outlook at the Wells Fargo 8th Annual Consumer Conference, highlighting strong growth and operational improvements.
Management showcased a strategic pivot to focus on the U.S. market after exiting Europe, a move that bolstered cash flow. The online consignment store forecasted a 25% jump in revenue for the third quarter. A key driver for this growth stemmed from investments in artificial intelligence, which the company's CEO, James Reinhart, felt were "underhyped." These AI advancements sharpened search results and improved the conversion rate for new customers by 18%. This news arrived amid a favorable market backdrop, as the Federal Reserve's recent interest rate cut provided a lift to consumer discretionary stocks.
After the initial pop the shares cooled down to $10.67, up 2.1% from previous close.
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What Is The Market Telling Us
ThredUp’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 3.6% on the news that a significant downward revision of U.S. job creation data raised concerns about the health of the economy.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March 2025 than initially estimated. This revision brings the average monthly job gains during that period down significantly, suggesting a cooler labor market. The downgrades were widespread across various service sectors. The largest revisions were seen in leisure and hospitality, which added 176,000 fewer jobs than first reported, followed by professional and business services and retail. Such data is closely watched by investors and economists as it can influence the Federal Reserve's decisions on interest rates. JPMorgan Chase CEO Jamie Dimon warned that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
ThredUp is up 656% since the beginning of the year, but at $10.67 per share, it is still trading 11.7% below its 52-week high of $12.08 from August 2025. Investors who bought $1,000 worth of ThredUp’s shares at the IPO in March 2021 would now be looking at an investment worth $533.30.
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