Start-up success Redbubble’s rampant ASX growth has grinded to a halt, this week hitting an all-time low share price of 82 cents.

Since landing on the Australian Stock Exchange (ASX) in May, Redbubble’s share prices have gradually sunk by 40 per cent from a record high of $1.53 to its new low.

The share slump comes less than a month after the tech giant released its quarter one results which saw revenue jump by 25 per cent.

[Related: Redbubble soars in IPO]

“Our marketplace continues to attract more artists and customers globally with solid margins and low customer acquisition costs. As forecast, the business is moving towards profitability as it scales and gets the benefits of operational leverage,” said CEO Martin Hosking of the results.

According to industry experts, share price and revenue spikes can be cyclical for online design marketplaces such as Redbubble and rival Etsy where peak periods dictate results.

Financial solutions expert Motley Fool predicted Redbubble’s share nose-dive from its IPO throne, stating tech listings are often volatile in a market where new-age investors are still sniffing around.

“Tech IPOs have a reputation for hitting frothy valuations before coming back down to earth as financial reality bites,” said Motley Fool at the time of its listing, accurately predicting, “It would not be a surprise to see some of the frothiness come out of Redbubble’s valuation in the months ahead either.”

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