![]() ![]() KeyBanc Adjusts Price Target on Revolve Group to $21 From $24, Maintains Overweight Rating Needham Adjusts Price Target on Revolve Group to $22 From $25, Maintains Buy Ratingīarclays Adjusts Price Target on Revolve to $15 From $17, Maintains Underweight Rating UBS Adjusts Revolve Price Target to $20 From $22, Maintains Neutral Rating As of this writing, David Moadel did not hold a position in any of the aforementioned securities.Morgan Stanley Adjusts Price Target on Revolve Group to $19 From $21, Maintains Equalweight Rating He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. ![]() If and when that happens, don’t be surprised if traders swiftly bid up the RVLV share price.ĭavid Moadel has provided compelling content - and crossed the occasional line - on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace. Nonetheless, it’s conceivable that the market will recognize that Revolve’s problems are likely temporary. There’s no way to pinpoint an exact date for an upcoming breakout in RVLV stock. To be honest, Revolve will need some time to turn its situation around. The pandemic-induced restrictions won’t last forever, and Generations Y and Z are itching to get out and socialize. Thankfully, if this is Revolve’s major roadblock, then it’s probably a temporary one. For a retailer that tends to emphasize the shopping experience rather than just the actual products, the loss of social opportunities means fewer chances to build brand awareness and to connect with current and prospective customers. Other live events have also been postponed, so Revolve has lost a significant promotional avenue for the time being. Unfortunately for the company, the pandemic meant that the Revolve Festival, which is Revolve’s most important company event, had to be postponed this year. To a certain extent, Revolve has relied on social events to drum up business. Yet, judging by the price action in RVLV stock, the coronavirus crisis seems to have impacted Revolve harder than other e-commerce names. Then came the pandemic, and Revolve’s net sales decreased sharply in March’s final weeks. “We began the first quarter strong with net sales for January and February combined increasing by more than 20% year-over-year and with our inventory turning approximately 20% faster year-over-year…” Revolve co-founder and co-CEO Mike Karanikolas offers a couple of data points in support of this contention: ![]() Revolve in particular was reaping tremendous benefits from the public’s shift toward online shopping. The billion-dollar question here is: Why would RVLV be so late to the e-commerce party? It’s baffling since online sales boomed for many businesses as lockdowns forced people to stay indoors.Īctually, e-commerce was doing quite well even before the shelter-in-place mandates commenced. And by “movement” I mean a breakout above $18, which could bring more investors into the fold. Since there’s no dividend, shareholders will want to see a pick-up in the volume and more movement in the price. RVLV stock is flirting with a range between $15-$18. The onset of the novel coronavirus made it difficult for RVLV stock to establish a range during the first half of this year. It’s a textbook example of why I often advise eschewing IPO hype and instead wait for the price to settle. A dream-demolishing decline from $50 in June 2019 to a mere $7.17 in March 2020 ensued. Then things went south.”Īnd indeed, southbound it was. InvestorPlace Markets Analyst Luke Lango’s on-point summary bears repeating as the stock “ popped from an $18 initial public offering (IPO) price to a nearly $50 price tag in just a few weeks. Not everything “revolves” around price action, but RVLV stock certainly has a noteworthy history. That’s why visionary investors might want to consider Revolve as an intriguing, albeit indirect, e-commerce wager. Perhaps it takes a fashion-forward mind to see the potential in RVLV stock. Is it possible that the Revolve revolution is in progress, yet not fully priced into the shares? Or maybe it does lift all boats, but just not all at the same time. It just goes to show that sometimes, a rising tide doesn’t lift all boats. ![]()
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