What Happened?

A number of stocks fell in the afternoon session after heightening geopolitical tensions in the Middle East sent crude oil prices soaring. 

Brent crude, the global oil benchmark, jumped significantly, with some reports showing prices reaching $96.47 per barrel and others as high as $116.50. This sharp increase rattled global equity markets, contributing to significant losses as investors weighed the impact of higher energy costs on the economy. The turmoil threatened to disrupt global economic stability, with analysts warning of significant stagflation risks, a period of slow economic growth combined with high inflation. The sustained price volatility could test global growth projections, potentially moderating consumer spending as a weakening labor market weighs on household income. The lack of de-escalation signs in the Middle East continued to unsettle markets, impacting sectors like auto and consumer discretionary goods.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Consumer Discretionary - Travel and Vacation Providers company Carnival (NYSE: CCL) fell 6.3%. Is now the time to buy Carnival? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company Royal Caribbean (NYSE: RCL) fell 5.9%. Is now the time to buy Royal Caribbean? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company Viking (NYSE: VIK) fell 6%. Is now the time to buy Viking? Access our full analysis report here, it’s free.
• Consumer Discretionary - Apparel and Accessories company ThredUp (NASDAQ: TDUP) fell 6.5%. Is now the time to buy ThredUp? Access our full analysis report here, it’s free.
• Consumer Discretionary - Real Estate Services company Opendoor (NASDAQ: OPEN) fell 5.5%. Is now the time to buy Opendoor? Access our full analysis report here, it’s free.

Zooming In On ThredUp (TDUP)

ThredUp’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 9 days ago when the stock dropped 23.7% on the news that the company reported fourth-quarter results that beat on revenue but provided a first-quarter forecast that signaled slowing growth. 

The company posted fourth-quarter revenue of $79.7 million, an 18.5% increase year-over-year that surpassed analyst projections, while its loss per share of $0.04 met expectations. However, investor focus shifted to the future outlook. ThredUp guided for first-quarter revenue of around $80 million. Although this figure was in line with consensus estimates, it implied a deceleration in year-over-year growth to 12.2%. This slowdown from the stronger growth rate reported for the fourth quarter appeared to be the main driver for the stock's sharp decline, overshadowing the otherwise solid results and a full-year revenue forecast that topped analysts' expectations.

ThredUp is down 40% since the beginning of the year, and at $3.64 per share, it is trading 69.9% below its 52-week high of $12.08 from August 2025. Investors who bought $1,000 worth of ThredUp’s shares at the IPO in March 2021 would now be looking at an investment worth $181.95.

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