What Happened:
Shares of online fashion retailer Revolve Group (NASDAQ: RVLV) jumped 28.3% in the morning session after the company reported second quarter earnings results. Revolve narrowly beat analysts' revenue expectations this quarter. Its buyers also outperformed Wall Street's estimates. On the other hand, its revenue growth regrettably slowed. Overall, this was a solid quarter for Revolve.
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What is the market telling us:
Revolve's shares are very volatile and over the last year have had 21 moves greater than 5%. But moves this big are very rare even for Revolve and that is indicating to us that this news had a significant impact on the market's perception of the business.
Revolve is up 35.9% since the beginning of the year, and at $22.66 per share it is trading close to its 52-week high of $22.76 from May 2024. Investors who bought $1,000 worth of Revolve's shares 5 years ago would now be looking at an investment worth $754.92.
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