TheRealReal (REAL) Soars 3.40% on Q1 Earnings

The RealReal (REAL) surged 3.40%, marking its sixth consecutive day of gains, with a 25.69% increase over the past six days. The share price reached its highest level since February 2025 today, with an intraday gain of 7.94%.

The strategy of buying REAL shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.83% annualized gain. This result indicates the effectiveness of this approach, although the returns are somewhat modest, suggesting that the market may have had periods of volatility or corrections that impacted the strategy's overall performance.

The RealReal's stock price has been influenced by its Q1 2025 financial results, which showed an 11% year-over-year revenue growth to $160 million and a net income of $62 million. Despite these positive results, including an 18.5% annual increase in active buyers to 985,000, shares fell by 10.8%. This decline suggests that investors are seeking more from the company, possibly in terms of future growth outlook or profitability. The company is projecting revenue between $157 million and $161 million for the current quarter ending in June. Overall, while The RealReal demonstrates resilience and strategic growth in a cyclical market, the market's reaction indicates higher expectations from investors.