Why the Redbubble (ASX:RBL) share price is soaring

The Redbubble (ASX: RBL) share price is up more than 14% after announcing a trading update to the market for July 2020.

Redbubble is the owner of two artist-product websites including Redbubble.com and TeePublic.com which is used by over 1 million artists.

Redbubble’s strong update

Redbubble gave a business update today showing that July’s marketplace revenue was $49 million, up 132%. That added to a strong final quarter of FY20 as well a good year to the company.

Fourth quarter marketplace revenue was up $122 million, up 107% compared to the prior corresponding period. Total FY20 marketplace revenue was $368 million, an increase of 43%.

Redbubble said that the increasing shift to online shopping resulted in year on year growth across all of its core geographies and product categories. Face masks have contributed $26 million of marketplace revenue from the launch at the end of April until 31 July.

The company expects to release its results on 21 August 2020.

Summary

Redbubble has really turned things around. Online retailer businesses are doing very well. Redbubble could continue to be one to watch for the long term. However, its share price is now much higher than it was pre-COVID, so I’d only start with a small purchase due to the strength of the increase.

I’d be more willing to buy larger positions in other ASX growth shares like Bubs Australia Ltd (ASX: BUB) or Pushpay Holdings Ltd (ASX: PPH). I’m not sure if the elevated demand will last for Redbubble over the next few months, though its growth could continue for the long term.

Expert Analyst Report: 1 ASX Stock for 2020 & Beyond

Want to know the name of 1 of our lead analyst’s top 10 growth stocks?

Enter your email below to receive a 3,500-word analyst report, valuation research note, exclusive CEO interview and more.

It’s completely free. Just enter your email and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Expert Analyst Report: 1 ASX Stock for 2020 & Beyond

Want to know the name of 1 of our lead analyst’s top 10 growth stocks?

Click here to access our free member content, including this 3,500-word analyst report, valuation research note, exclusive CEO interview and more. It’s completely free.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading: