Hot Stocks: E-commerce names rise on POSH deal; fintech rally; PTON jump; MRVI falls

by James · October 4, 2022

A major takeover deal spurred interest in beaten-down e-commerce names, which showed significant strength in Tuesday’s midday trade. Thanks to Poshmark’s buyout deal, shares of RealReal (REAL), ThredUP (TDUP), Stitch Fix (SFIX), Farfetch (FTCH)) and rent the runway (RENT) all gathered.

Fintech represented another group of winners during Tuesday’s intraday action. Bolstered by Wall Street’s sudden rally, Affirm (AFRM), Block (SQ) and Shopify (SHOP) all rose.

Platoon (NASDAQ: PTON) represented another notable dinner winner. The stock continued its recent rise with a double-digit percentage increase.

Despite the day’s overall positive momentum, some stocks lost ground during the day. Maravai LifeSciences (MRVI) fell after a major management change.

Winners

News that Poshmark has agreed to be acquired in a $1.2 billion deal sparked a wave of buying among e-commerce names. RealReal (REAL) was among the biggest winners in the sector, climbing more than 20% in intraday action.

Elsewhere in the group, ThredUP (TDUP) rose approx. 19%, Stitch Fix (SFIX) rose almost 16%, Farfetch (FTCH) advanced approx. 13% and Rent the Runway (RENT) rose approx. 10%.

Looking at some of the day’s other big gains, the general buy-the-dip mentality of the past couple of days has favored downbeat risk stocks. This included the once hot fintech sector. Affirm (AFRM) helped lead the group higher, climbing 14% in midday trade.

Meanwhile, both Block ( SQ ) and Shopify ( SHOP ) advanced around 13%.

Former pandemic darling Peloton (PTON) also got a boost from the risk trade, jumping into action during the day. The shares of the fitness equipment supplier rose by 16%.

The advance followed a rally posted on Monday, when the stock rose nearly 8% on news that it had partnered with Hilton. PTON, which traded at $8.65 in Tuesday’s intraday action, is bouncing back to a 52-week low of $6.69.

Rejects

Maravai LifeSciences (MRVI) fell following the announcement that it has appointed an external executive as its new CEO. The company said William Martin, III will take over as CEO, succeeding co-founder Carl Hull.

Hull will remain with the company as executive chairman. On news of the leadership change, MRVI fell nearly 10% in intraday action.

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