It’s a rare thing for a consumer tech company to show profits when it goes public. For Poshmark, the hurdle will be proving profitability isn’t just a Covid-19 era occurrence.
On Thursday, initial investors seemed to be willing to give the apparel reselling app the benefit of the doubt. After the company priced its initial public offering at $42, above its earlier range, it jumped 142% to close at $101.50. For CEO Manish Chandra, who cofounded Poshmark a decade ago, such demand doesn’t signal irrational exuberance as much as appetite for companies that proved they can make it.
“I’m 53 years old so I’ve seen the dot-com market and I don’t think the current market is that,” he said on a video call. “There’s real revenues and real sorts of businesses going public.”