RealReal ‘business model simply may not work,’ J Capital says in short report

Product authentication and legitimacy are paramount for The RealReal (REAL), but J Capital’s research “indicates that REAL’s authentication lets through many counterfeits, and that has enraged both buyers and sellers,” the firm says in a new short report. The “business model simply may not work,” adds the short-seller, who contends that at “the scale required for REAL to be profitable, we think it is inevitable that fake products will slip through.”