TDUP - ThredUp dips to all-time low despite analyst optimism

Shares of ThredUp ( NASDAQ: TDUP ) touched a new all-time low on Tuesday, extending an over 90% decline in the past year.

Shares fell over 8% at intraday lows, ticking in at $2.23. The nadir marks a stark decline from the 52-week high of $29.84 and extends a steep decline for the eCommerce name that has paradoxically been most-pointed after its addition to the Russell 3000 index .

The new low for the stock also follows shortly after a bullish initiation from Raymond James analyst Rick Patel. At the close of June, Patel suggested that declines were coming to an end for eCommerce stocks with a shift in market sentiment likely imminent.

“While there is macro uncertainty, this already points to a dire scenario and we think a significant amount of the bad news has been priced in,” Patel wrote. “We believe risk/reward favors upside, especially for the higher-quality names that check the most boxes in our investment framework.”

Among the oversold stocks selected was ThredUp ( TDUP ), which was assigned a $7 price target and a “Buy” rating. That optimism was not reciprocated by the market however, with shares declining about 12% from the date of the recommendation.

Read more on forecasts for second half action among eCommerce stocks .

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