Cettire sees last-minute selloff
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More news: Shares in Cettire saw a last-minute selloff, ending just 0.35% higher after soaring as much as 21% earlier in the day.
The stock is trading at $1.43 and over the past 12 months has fallen 59.29%.
Cettire stock soars, bouncing higher
The news: The share price of luxury ecommerce platform Cettire soared 21% during Friday's session, hitting $1.72 despite no new market announcement.
The numbers: The jump sees Cettire stock up 63% since it closed at $1.06 late last month, an 18-month low. The stock's valuation remains 50% down since where it started in 2024.
The context: Earlier this week Cettire announced the appointment of a new director, former investment banker Jon Gidney, the first to join the board since the company listed in December 2020.
It follows a volatile few months for the company, capped off by a major selloff in June when the company downgraded its guidance, suggesting profit would remain flat or even go backwards in the last quarter of the financial year.
Reporter's view: Markets and finance correspondent Jack Derwin writes: "Gidney's appointment to the board — given his 30 years of financial services experience at JP Morgan, Wilson's, Citigroup and others — appears to have restored a little confidence in Cettire which has been absolutely hammered on the ASX over the last couple of weeks.
"Described as a 'battleground stock', Cettire has been caught in a tug-o-war between its major backers including Regal and Cat Rock and the sceptics who remains highly doubtful over the platform's business model.
"Flirting with a $2 billion valuation as recently as March, Cettire's market cap fell dramatically to touch $400 million at the start July as media reports continued to question whether or not the company was compliant with its duties and tax obligations and whether or not its business was sustainable.
"Today, it ranks one of the most shorted stocks on the entire Australian market with June's updated guidance suggesting margins were coming under significant pressure. The company blamed softer luxury sales and a growing reliance on discounting. Short sellers claimed the update is evidence of the fragility of Cettire's business.
"Whichever side of the trade investors take, it is a growth stock that is prone to more volatility. Bulls may perceive it as oversold at these levels, bears might expect it to go lower still.
"All eagerly await the next couple of results to see which thesis appears to be bearing out."
The source: ASX announcement
