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RealReal News: REAL Stock Slides 10% on Competition Warning

RealReal (NASDAQ:REAL) news for Friday concerning a downgrade has REAL stock taking a beating.

RealReal News: REAL Stock Slides 10% on Competition Warning

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The downgrade comes from B. Riley FBR analyst Susan Anderson. She drops the stock down from its previous “Buy” rating to a new “Neutral” rating. The change in rating doesn’t come with a new price target for REAL stock.

So what exactly is behind the rating change from the B. Riley FBR analyst? The biggest concern that Anderson has is that the company is about to see some competition that could cause problems.

The bad RealReal news is that many luxury brands are likely going to be discounting items in the near future. That’s due to them trying to clear out inventory as shoppers become more conservative with the coronavirus from China spreading.

While it’s true that this means RealReal could also take advantage of these same methods, the increasing competition during the period might not be the best for its brand. At least, that’s what Anderson is predicting, reports Seeking Alpha.

RealReal has seen its own struggles during the coronavirus outbreak, which includes having to close down Brisbane, Calif., e-commerce center. The company has also withdrawn its fiscal 2020 outlook due to the coronavirus pandemic.

Julie Wainwright, founder and CEO of RealReal, said this about the outbreak.

“While the magnitude of COVID-19’s near-term impact remains fluid, we are confident in our leadership position and our long-term strategy to capitalize on the large market opportunity before us.”

REAL stock was down 9.5% as of Friday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/04/realreal-news-downgrade-hits-stock/.

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