What Happened?

Shares of online fashion retailer Revolve Group (NASDAQ: RVLV) jumped 24.9% in the morning session after the company reported strong third-quarter earnings. Momentum improved as demand accelerated in the Revolve segment, allowing the company to achieve a rare double-digit top-line growth compared to the previous year. The top line strength, in addition to enhanced business efficiency in logistics and marketing, also helped the company deliver strong improvements in profitability, as EBITDA also exceeded expectations. 

Overall, the results were strong and promising, suggesting some inflation worries that impacted consumer spending in the previous quarters are easing.

Is now the time to buy Revolve? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Revolve’s shares are very volatile and have had 22 moves greater than 5% over the last year. But moves this big are rare even for Revolve and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 3 months ago when the stock gained 28.3% on the news that the company reported strong second quarter earnings results. Revolve narrowly beat analysts' revenue expectations. The number of buyers 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 up 100% since the beginning of the year, and at $33.36 per share, has set a new 52-week high. Investors who bought $1,000 worth of Revolve’s shares 5 years ago would now be looking at an investment worth $1,697.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.