Wall Street punished Zulily last week after the daily deals site said it was prioritizing growth over profits.
But today the company’s stock recovered a bit after its lock-up period expired. Shares were up nearly $3 to $35 a share, or 9.3 percent during regular trading hours today, and in after hours, shares remained stable.
Typically, stock prices fall when insiders are allowed to unload shares for the first time, but in this case, it had the opposite effect with the extra volume driving prices higher.
Presumably some shareholders took advantage of the expiration since nearly 10 million shares traded hands today, up from 1.5 million shares on an average day.
Six months ago, the Seattle-based company went public, raising $140 million at $22 a share.
Since then, the stock has been on a roller coaster ride, first climbing to prices as high as $73.50 a share. Last week, the stock crashed, following the company’s first-quarter earnings report that revealed a bigger than expected loss.
Even though the company beat projections on revenue and boosted revenue guidance by $50 million for the year, Wall Street was scared by the company’s commitment to invest aggressively. Zulily plans to spend heavily on building new fulfillment centers, hiring and boosting its marketing efforts.