Realreal (REAL) has disclosed a new risk, in the Debt & Financing category.
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Realreal faces a significant business risk due to potential bank failures where its funds are deposited. Given that the Federal Deposit Insurance Corporation (FDIC) insures deposits only up to $250,000 per depositor, any funds exceeding this insurance limit are at risk. Should a banking institution holding Realreal’s deposits fail, the company could lose cash reserves above the insured amount, directly impacting its ability to pay distributions and make new investments, thereby potentially diminishing stockholder value.
The average REAL stock price target is $3.46, implying 25.36% upside potential.
To learn more about Realreal’s risk factors, click here.