What Happened?
Shares of online fashion retailer Revolve (NASDAQ: RVLV) fell 3.9% in the afternoon session after the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs. The negative market sentiment was triggered after an appeals court ruled that recently imposed U.S. "reciprocal" tariffs are illegal. While the tariffs will stay in place pending a Supreme Court appeal, the ruling has injected fresh uncertainty into trade policy. This broader market weakness, particularly led by technology stocks, appears to be weighing on investor sentiment across various sectors, impacting companies like Revolve.
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What Is The Market Telling Us
Revolve’s shares are very volatile and have had 25 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 previous big move we wrote about was 11 days ago when the stock gained 5.5% on the news that amid a broad market as after U.S. Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts in the coming months. The broader market surged after U.S. Federal Reserve Chair Jerome Powell, in a speech at Jackson Hole, Wyoming, suggested the door was open to lowering interest rates in the coming months. This signal sent a wave of optimism through the markets, lifting major U.S. indices, including the S&P 500 and the Nasdaq Composite.
Revolve is down 35.8% since the beginning of the year, and at $21.53 per share, it is trading 44.5% 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 $1,002.
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