Stitch Fix shares closed Friday at $15.15 apiece after they began trading on the Nasdaq stock exchange at $16.90 that morning, having priced at $15 the night before.
The stock briefly skyrocketed more than 20 percent on its initial public offering before retreating to close up only 1 percent. At one point, shares momentarily dipped below the $15 threshold.
Stitch Fix raised $120 million Thursday evening in a downsized IPO that priced below its indicated range of $18 to $20. The online retail service had originally planned to sell 10 million shares in the offering, though only sold 8 million.
Investors had demanded a discount amid concerns over the company's profitability and transparency of its financial metrics, a source familiar with the situation said.
Stock jumps from IPO prices are particularly important to institutional investors toward the end of the year, as funds close out their books. Investors were skittish about potential fourth-quarter surprises, a trend that has been set by Snap and Blue Apron, the source added.