🥖 Butter on both sides of Greggs’ bread

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Today's big stories

South Korean internet giant Naver snapped up second-hand clothes retailer Poshmark
The Federal Reserve’s given stocks a knock, but your portfolio doesn’t have to follow – Read Now
UK bakery chain Greggs gave a strong quarterly update

Never Say Naver

What’s Going On Here?

Naver, South Korea’s biggest internet company, announced this week that it’s buying US clothing reseller Poshmark in a deal worth $1.2 billion.

What Does This Mean?

The US online second-hand fashion market's already worth a sleek $80 billion at the moment, and it's predicted to hit a show-stopping $130 billion by 2025. And with that hefty twelve-figure forecast, it’s no surprise that it’s attracting overseas attention. Just look at Naver: South Korea’s biggest internet company is buying US second-hand fashion marketplace Poshmark at nearly $18 a share – a whole 15% more than what they were worth before the deal was announced. The acquisition is Naver’s biggest ever and reveals the company’s commitment to becoming a global player in the online fashion space: its ambitious plan involves enriching Poshmark’s social shopping platform – which boasts an 80 million-strong customer base – with new live-streaming features that are popular in Asia. And at the same time, it’ll give Poshmark access to Naver’s vast ecommerce experience, while letting the platform continue to operate independently.

Why Should I Care?

For markets: Dangerous liaison.
It seems investors weren’t sold on Naver’s grand plan. In the wake of the news, the company’s shares hit a low they haven’t seen since April 2020 – and not without reason. After all, Poshmark’s stock price has been in near-constant freefall since it went public last year, and the fact it’s likely to post a $70-million loss this year hardly screams “Buy me!”. All in all, then, Naver’s going to have to put its shoulder to the grindstone if it hopes to turn this deal to its advantage.

Zooming out: Dressing down.
With the global economy faltering and ecommerce growth going slack, circumstances seem to be set against Naver. Look at fashion retailer Boohoo: last week the company reported its first ever drop in sales in the first half of the year – and with cash-strapped consumers skimping on fashion sense in favor of financial sense, the company found itself forced to slash profit predictions for the rest of 2022 too.

You might also like: Why pre-owned fashion could be a good investment.

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Analyst Take

Stormy September Strikes Again

By Russell Burns, Analyst

Stormy September doubled down on its reputation as the worst-performing month of the year.

The S&P 500 Index fell 9.3% during the famously sluggish month, and the Nasdaq 10.5%.

And it turns out the Federal Reserve – busy powering up interest rates and slimming down its balance sheet – could be behind the selloff.

So that’s today’s Insight: how the Federal Reserve has impacted stocks, and how you can react to the slump.

Read or listen to the Insight here

Your brand could represent the new investing era

The second Finimize Modern Investor Summit will celebrate the new era of investing.

So if your brand or product is helping to create the next generation of investing opportunities, our summit is the ideal place to showcase your potential.

Feature your product during speaker slots, fireside chats, and expert Q&A panels, and you’ll be able to directly engage with an engaged audience and demonstrate your brand’s true power.

Thousands of retail investors attended the Modern Investor Summit last year, so don’t miss your chance to get your product in front of our community this December.

Put your brand in the spotlight.

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