Realreal (REAL) has disclosed a new risk, in the Debt & Financing category.
Realreal faces a significant business risk due to the Federal Deposit Insurance Corporation’s (FDIC) insurance limits. With cash and cash equivalents, as well as restricted cash likely exceeding the $250,000 insured threshold per depositor, Realreal is exposed to potential losses if a banking institution holding their funds were to fail. Such a loss could severely impact Realreal’s liquidity, constraining their ability to distribute earnings or reinvest in the business, and could consequentially lead to a decrease in shareholder value.
The average REAL stock price target is $3.71, implying -9.07% downside potential.
To learn more about Realreal’s risk factors, click here.
