Is The Fashion-Tech Bubble Going To Burst?(Vogue Business)


The article first appeared on the Vogue Business.

Key takeaways:

  • Fashion-tech companies are rapidly going public as investors flock to stocks that promise to attract and service shoppers through algorithms.

  • The average price-to-sales ratio for these companies is significantly higher than pure tech or retail stocks even though many fashion-tech firms are unprofitable and face rising costs.

  • Stock prices have been volatile, although consistently profitable companies like Stitch Fix and Revolve have held on to their gains.