5 Best Small Cap Ecommerce Stocks to Buy

4. Revolve Group, Inc. (NYSE:RVLV)

Number of Hedge Fund Holders: 20    

Revolve Group, Inc. (NYSE:RVLV) operates as an online fashion retailer for consumers in the United States and internationally. It is one of the top ecommerce stocks to invest in. On October 10, Revolve Group stated that it has partnered with Nykaa Fashion, an online clothing store in India. In this partnership, Nykaa Fashion will mediate for customers and help them shop in a seamless manner.

On August 8, Needham analyst Anna Andreeva maintained a Buy rating on Revolve Group, Inc. (NYSE:RVLV) stock and lowered the price target to $40 from $60, noting that the company’s Q2 results saw strong new customer ads, acceleration in average order value, and robust gross margins. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Revolve Group, Inc. (NYSE:RVLV), with 2.2 million shares worth more than $58 million.

In its Q2 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Revolve Group, Inc. (NYSE:RVLV) was one of them. Here is what the fund said:

“Revolve Group, Inc. (NYSE:RVLV) is an e-commerce fashion company we believe is executing well. The stock weakness during the period was more sentiment-driven as the market grew increasingly concerned about consumer spending a recession.

We acknowledge that there could be some softness in the company’s near-term results as consumers tighten their purse strings, but we believe there remains tremendous long-term potential for this business. We have also observed that Revolve’s management team is exceptional when it comes to navigating unprecedented challenges, as they did during the pandemic and have a long history of doing so since being founded in 2003 and bootstrapped by their founders. Management preparedness is an important marker we are looking for during this challenging time and Revolve’s management team unquestionably passes the test in this area. We added to our position on this weakness.”