What Happened?

Shares of online fashion retailer Revolve (NASDAQ:RVLV) jumped 7.8% in the morning session after Jefferies analysts upgraded the stock's rating from Hold to Buy, following a meeting with management. The analysts assigned a price target of $30, which implied a potential 30% upside from where shares traded before the upgrade was announced.

The shares closed the day at $22.31, up 5% from previous close.

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What The Market Is Telling Us

Revolve’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 7 months ago when the stock gained 28.3% on the news that the company reported strong second quarter 2024 earnings results. Revolve narrowly beat analysts' revenue expectations during the quarter. The number of buyers recorded on its platform also outperformed Wall Street's estimates. On the other hand, its revenue growth regrettably slowed. Overall, this was a solid quarter for Revolve.

Revolve is down 33.5% since the beginning of the year, and at $22.31 per share, it is trading 42.5% below its 52-week high of $38.80 from November 2024. Investors who bought $1,000 worth of Revolve’s shares 5 years ago would now be looking at an investment worth $2,544.

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