Naked Brand Group (NASDAQ:NAKD) Stock Fails To Sustain At Higher Level: But Why?
Naked Brand Group (NASDAQ:NAKD) stock benefited from the r/WallStreetBetshype. The company, which was headed for Chapter 11 bankruptcy, has since eliminated its $270 million debt in cash and is now considering a considerable acquisition.
Market Stats
On Thursday, NAKD stock moved down 5% at $0.655 with more than 56.28 million shares, compared to its average volume of 68.27 million shares. The stock has moved within a range of $0.6550 – 0.6845 after opening the trade at $0.6720.
Major Buzz
Before investors can purchase this stock, it’s vital to note that most companies are still struggling despite eCommerce gaining popularity. For instance, Naked Brand has been at the end of poor social media and competition that has hurt performance in recent years. The intimate apparel manufacture is changing into an online model following the divesture of everything except the online marketplace.
eCommerce is undoubtedly the future of business, but there is no online sales growth for Naked Brand, and its outlook appears strained. Naked Brand is late to the eCommerce sector that topped $4.28 trillion last year, and the sale of its running business is affecting the bottom line.The company only grew sales 0.4% YoY compared to global eCommerce growth of 25.7%. Investors should be keen on NAKD.
Traders Corner
NAKD stock is below the 20-Day and 200-Day Moving averages of $0.67 and $0.71 respectively. However, the stock is trading above the 50-Day moving average of $0.65. The stock is up 21% in the past 3-month.
