Digital Brands Group (NASDAQ:DBGI) Stock Fall On Profit Taking: A Good Opportubity?
Digital Brands Group Inc (NASDAQ:DBGI) has emerged as a well known player in the luxury digital first brands space in recent times. However, this past Friday, the stock actually declined sharply and went down by as much as 15% after the company announced its initial estimate for the second fiscal quarter of the year that ended on June 30, 2021.
The company announced that the revenues in the second quarter went up by around 100% on a sequential basis. It should be noted that in the first quarter, revenues from Harper & Jones has only been contributed in a period of six and half weeks.
While it cannot be denied that almost a doubling of revenues is a major development for the company, it did not seem to have the same effect on the investors, many of whom rushed for the exits.
Hil Davis, who is the Chief Executive Officer of the company stated that as previously announced by Digital Brands Group, the company managed to perform strongly in the second quarter. However, Davis went on to state that the performances in the third and fourth quarters of the year are going to be even stronger.
Market Reaction:
On Friday, DBGI stock fell 15% at $5.07 with more than 3.30 million shares, compared to its average volume of 6.71 million shares. The stock had moved within a range of $5.05 – 5.80 after opening the trade at $5.65. Over the past 52-week, the stock has been trading within a range of $2.80 – 8.80.
