Why ThredUp (TDUP) Stock Is Nosediving

What Happened?

Shares of online fashion resale marketplace ThredUp (NASDAQ:TDUP) fell 23.7% in the afternoon session after the company reported fourth-quarter results that beat on revenue but provided a first-quarter forecast that signaled slowing growth. 

The company posted fourth-quarter revenue of $79.7 million, an 18.5% increase year-over-year that surpassed analyst projections, while its loss per share of $0.04 met expectations. However, investor focus shifted to the future outlook. ThredUp guided for first-quarter revenue of around $80 million. Although this figure was in line with consensus estimates, it implied a deceleration in year-over-year growth to 12.2%. This slowdown from the stronger growth rate reported for the fourth quarter appeared to be the main driver for the stock's sharp decline, overshadowing the otherwise solid results and a full-year revenue forecast that topped analysts' expectations.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy ThredUp?

What Is The Market Telling Us

ThredUp’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. But moves this big are rare even for ThredUp and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 8 days ago when the stock dropped 7.2% on the news that the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

ThredUp is down 37.5% since the beginning of the year, and at $3.80 per share, it is trading 68.6% below its 52-week high of $12.08 from August 2025. Investors who bought $1,000 worth of ThredUp’s shares at the IPO in March 2021 would now be looking at an investment worth $189.75.

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