When South Korean tech giant Naver confirmed earlier this week that it would purchase Poshmark Inc. at $17.90 per share, many observers said the offer was fair.
Was it? After all, Poshmark—an Instagram-like site specializing in apparel resale—went public in 2021 at $42 a share. On Friday, it closed at $17.76.
Here’s a look at why the Redwood City, California-based company plummeted in value.
What Happened
Over the last three months, analysts offered 12-month price targets for Poshmark, giving it an average of $15.38 with a high of $17.50 and a low of $11. Naver’s offer, generous when compared to that range, values Poshmark at $1.6 billion….