Redbubble shares continue their recovery following a verdict in the company’s US litigation case.
The post Redbubble (ASX:RBL) share price surges 7% despite litigation outcome appeared first on The Motley Fool Australia. –
The Redbubble (ASX: RBL) share price has jumped 7.87% today to reach $3.70 at the time of writing.
Today’s gains come are a short-term reversal out of the red for Redbubble’s share price. Year-to-date, the company’s shares have dropped by 37.82%, whereas the S&P/ASX 200 Index (ASX: XJO) has posted a return of 11%.
However, over the past month, the Redbubble share price has gained 8.19% in 1 month, giving Redbubble a current market capitalisation of around $1 billion.
Share price gains amidst litigation outcome
Redbubble operates an online print-on-demand marketplace where artists can sell their own art and designs on a range of products.
On 24 June 2021, the company provided a litigation update in the case involving its US subsidiary Redbubble inc, originally commenced by US fashion retailer Brandy Melville.
The release outlined the company had received a verdict relating to alleged intellectual property infringement. The jury’s verdict included a reward of US$520,000.
In the statement, the company noted that:
Redbubble also notes that, in US court proceedings, this is but one step in the overall litigation and a number of possible steps remain before the claim is finally concluded. Redbubble believes that certain critical findings were not supported by the evidence offered at trial and will be asking the court for relief from the verdict on that basis. Redbubble remains confident in its position and will continue to vigorously pursue its defence of the claims.
Investors continue to reward Redbubble stock despite the litigation outcome. On Wednesday 24 June, Redbubble’s shares were trading at $3.27, and since this event, have gained 13.15%.
Redbubble share price snapshot
Over the past 6 months, Redbubble shares have lost 37.82% in value (at the time of writing). The company’s 52-week price range is $1.86–$7.35, a 295% difference.
Shares made a quick run from $2 and change in June 2020 to the all-time-high of $7.35 in January 2021. However, since this time, the share price has retraced 49.66% back down to today’s level of $3.70 at time of writing.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of May 24th 2021
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.