Thinking about investing in Poshmark (NASDAQ:POSH) in 2022? In this segment of Backstage Pass, recorded on Jan. 10, Fool contributor Rachel Warren dives into the founding of the company, how its business model operates, and its massive market potential.
Rachel Warren: The first stock I am going to talk about today, and before I share my screen, I want to give a little background on this stock, is Poshmark. This is interesting because I used Poshmark years ago. I remember trying to sell some items on there. I didn’t really put a lot of effort, and I don’t think I sold anything, but I got to know the app and I’ve stayed on it over the years.
I was really interested to see when this company went public, how is the business doing, and really, how diverse the business is and the areas it’s expanded to that I had no idea. Poshmark was founded in 2011. What’s interesting about this company is it is founder-led under four different founders and all of them are still in management positions at the company. One of them’s the CEO, one of them’s the CTO.
That’s something we like to see here at The Motley Fool, companies that are led by the people that founded them and all of these founders have stayed in place. Poshmark has over 80 million community members across the U.S., Canada, Australia, and now recently India, a country that recently expanded to, along with 200 million items for sale. I don’t know about you, but when I thought about Poshmark, I thought of it primarily as a place where you’d find pre-owned clothing.
What’s interesting is that Poshmark has a lot of options outside of that. It’s a marketplace for women’s, kids, and men’s fashion and accessories. Those could be new, or they could be pre-owned. As well, the company has also expanded to other categories, including new personal care products, you can buy on there, as well as certain types of home goods, pet items, and even electronics. What’s interesting is that for pets, you can buy things like feeders, bedding, blankets, clothes.
For electronics, I had no idea this was something you could find on Poshmark. You can find everything from digital cameras to laptops, to memory cards. I got online and I found a used Apple MacBook Pro 13-inch for $380 on Poshmark, and a new one, I think retails for anywhere from $1,299 of $1,499. Interesting that you can buy pre-owned or brand new apparel and accessories, but you can also buy electronics and things for your dog or cat. Interesting how Poshmark has expanded to these other product …….