Online clothing reseller Poshmark's public debut resulted in shares surging more than 130 percent.

On Wednesday, Poshmark priced its IPO at $42 a share giving the company a valuation of around $3 billion. On Thursday, the stock opened up to the public at $97.50 per share. In November 2017, the company was valued at around $600 million.

Poshmark, founded in 2011, is a marketplace where users can sell their used clothing, shoes, and accessories. Poshmark takes a 20 percent cut from every sale over $15 and a $2.95 flat-rate fee for items under $15.

Recently, companies that went public have surged out of the gate. Affirm, a payment company, went up more than 100 percent yesterday. Last month, Airbnb and DoorDash each doubled in price on the day they went public as well. Poshmark filed to go public in December. In its IPO prospectus, Poshmark stated that the pandemic increased the active users on its platform.

For the first three quarters of 2020, the company brought in $192.8 million in revenue, increasing 28 percent year-over-year. The company also reported a profit of $20.9 million for the first time in its history.

The company reported 6.2 million active buyers and 31.7 million active users.

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Economics, Finance and Investing