Small-cap stock %TheRealReal (NASDAQ: $REAL) is on the recovery trail, and investors should pay attention.
In 2024, The RealReal’s stock rose 462% to trade at just over $11 U.S. per share and near a 52-week high. Going into 2024, the stock was trading for less than $2 U.S. per share.
It’s a big bounce back for the stock and company. Despite the rise in 2024, The RealReal’s share price remains 62% below where it was trading at five years ago when it made its market debut.
The company runs an online marketplace for users to buy and sell luxury goods that are authenticated by experts.
Items sold on The RealReal’s portal include everything from authentic Gucci handbags to Prada purses and Manolo Blahnik shoes.
The RealReal boasts more than 35 million members and has sold nearly 40 million luxury items since its founding in 2011.
While the company operates primarily online, it has opened a few retail locations in major cities such as New York.
While the stock got hammered coming out of the Covid-19 pandemic and amid claims that some items sold on its platform were counterfeits and knockoffs, the share price has since recovered.
The recovery has caught the attention of analysts and some notable investors.
The RealReal’s stock is currently a top holding of famed investor Michael Burry, who successfully predicted and profited from the subprime mortgage crisis in the U.S. back in 2008.
Despite its big move higher over the past year, The RealReal remains a small-cap stock with a market capitalization of only $1.20 billion U.S.
As investors look to adjust their portfolios at the start of a New Year, they may want to consider this online retailer and luxury goods play.
