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ThredUp (TDUP) Forecasts 25% Q3 Revenue Growth as Q2 Results Impress

ThredUp Inc. (NASDAQ:TDUP) is one of the must-buy small-cap stocks to invest in. On August 4, the company delivered solid second-quarter results driven by strong customer and order growth. Revenue in the quarter increased 16% year-over-year to $77.7 million as Gross profit increased 17% to $61.7 million and gross margin expanded to 79.5% from 78.8% in the second quarter of last year.

A smartly dressed woman browsing a selection of designer clothing in an upscale retail store.

The robust revenue growth was driven by a 17% increase in active buyers to 1.47 million and a 21% rise in orders purchased to 1.54 million. Loss from continuing operations shrank to $5.2 million compared to a loss of $9.4 million in the second quarter of last year. The better-than-expected results came as ThredUp continues to benefit from AI investments that are driving buyer and seller acquisition.

ThredUp expects the growth achieved in the second quarter to continue in the third quarter. Therefore, it expects revenue to range between $76 million and $78 million, representing a 25% year-over-year increase. Gross margin is expected to range between 77% and 79%.

ThredUp Inc. (NASDAQ:TDUP) is an online consignment and thrift store specializing in buying and selling secondhand women’s and children’s clothing, shoes, and accessories. It also offers a “Resale-as-a-Service” platform that allows brands and retailers to integrate resale into their businesses.

While we acknowledge the potential of TDUP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TDUP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

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This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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