Nvidia Does It Again, but is LULU a Lemon?
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- Äas pĆidĂĄn 25. 07. 2024
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Nvidia (NVDA) just reported earnings and beat expectations again, but there was something in their outlook that may signal a future slowdown. Also, Lululemonâs (LULU) stock price keeps dropping and the news around the company seems to be only negative. So in this video we break down what Nvidia reported for the quarter, evaluate why Lululemon keeps dropping, as well as break down the negative news around the company.
00:00 Nvidia did it again
05:27 Whatâs going on with Lulu?
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That LULU analyst reminds me of Charles Barkley 10 years ago with the "These little guy guards will never win" referring to the GS Warriors, eventually you keep saying the same thing year after year.. Bound to get it right... eventually, some year. He'll be the first one to say he got it right as well.
I bought Nvidia last year for under 500 a share itâs my 4th best performing stock,my best one is Apple up about 500% followed by Microsoft up about 400% and Costco up about 380% all bought in 2017
Iâm Canadian but I donât own Lulu,keep your eye on this one
I donât see a lululemon slow down in 2025 unless itâs a broad market slow down across the whole consumer sector. Iâve been adding at these prices and ready to hold long term, 5-10 years.
Awesome points with regard to LULU. It is difficult to avoid market noise at times.
Since that September 2021 article the stock technically is down ~30%
I am not familiar with Lululemon fundamentals but I am in their target market. From what I observe, they are in a super fluctuating, fad business so I think a stock correction is appropriate.
Athleisure isnât going anywhere but celebrity brands like Skims and Fabletics keep popping up every day and Costco/Amazon dupes too. All the clothing is made in the same factories in Asia. I thought Lulu releasing their shoe a few months ago was a clear sign that they are desperate as trying to take a bite out of Hoka, Cole Haan, allbird, and ONâs market share is bold.
Again, donât follow the fundamentals but I think any company riding a high in this marketplace is at the whim of influencers and zoomers.
Sure but I think saying itâs down â30% since that articleâ is a little misleading since thatâs due to the recent downswing since March.
I disagree that Lulu is an influencer led brand. While there are cheaper / celebrity led brands out there, I think people who buy Lulu view them as different / better. But weâll see how theyâre doing on June 5th
â@@mattderron For sure, I was just being cheeky. It is quite the volatile stock the past few years though. And I agree, it is not an influencer led but my thesis is the market its in is heavily swayed by influencers. We will see June 5th and I wish you good luck!
Yeah itâll be interesting because I feel that the analyst sentiment is quite a bit more bearish than what the company talked about last quarter. Will be interesting to see which side reality is closer to
Plenty of my wife's leggings purchased from Costco are actually made in Canada.
@@aaron6806 made in Canada by....LULU?? đ
Ngl, as someone who has a lot of female friends (male nurse), Iâve seen the switch from Lulu to ALO. Pretty drastically actually. But like you said, itâs a US thing, internationally, the change will probably lag a bit.
One reason why I avoid LULU is that international growth could very well never materialize. Lululemon forfeited first-mover advantage years ago, so why would they grow in any market, just because they decide to pursue said markets? There are dozens of viable competitors, on price, quality and selection, so to think Lululemon just shows up in China, or any other large market and takes market share is potentially hazardous wishful thinking.
I think whatâs happening to Lululemon and Nike for that matter is exactly whatâs happening between target and Walmart. People are trading down. Lululemon is a brand that people buy because of the brand which is great if you have the money to pay for it. Given the characteristics of todayâs economy, I just donât think thatâs the case. And this is the side effects of it.
Yeah I think what will be interesting for Lulu is what they actually report. This price dump has happened after a quarter they still had double digit growth in. All of this is based on slightly lower guidance and analyst expectations. Thatâs why Iâm so curious what they actually report
@@mattderron well to be fair people pay for future growth, not necessarily current growth. However, we shall see what happens.
@Dmindthinker011 of course, but their EPS guidance for the year was still mid double digits. We shall see though
@@mattderron and if you believe that, then youâre in the money. But for the reason I just gave above I just donât see it. However, despite my strict diet Iâm willing to eat my words.
My thoughts are that Lulu's core customer is still doing well, because they are more affluent in general (up to this point I think that group is doing ok), but we don't know until we know lol.
Agree with you that even if it's my view, I can easily be wrong and eat my words lol
I'm pretty excited Nvidia and Apple are finally growing strong together. VGT is finally catching up with VOO this years so my portfolio bumped over the next 100k mark briefly. So far its nothing but sunny skies. Has me a bit concerned for a correction but hey...we never know, right?
Yes it's been nice to see Apple come back, my position is back in the green. Nvidia has been a beast there's nothing else to say about it lol
Iâm not a fan at current valuations. Fashion trends shift. Few things are as timeless as Nike. Their success is too heavily concentrated on yoga pants. After so many years they really havenât been able to evolve⊠like a one-hit singer. Their great numbers based on selling at super high prices, which I do think is right strategy. But consumers are stretched and will be tight financially for long time so their sales will be hit and either they gotta compromise on revenue or margins. As Buffet says if you arenât willing to hold a stock for 10 years donât hold it even for 10 minutes. Iâm just not seeing they can sustain this P/E for long term.
Weâre obviously all entitled to our view but Iâm just curious if you mean they are a âone-hit singerâ in terms of leggings being their hit? If so, I would definitely disagree with that.
@@mattderronYes, leggings. Thatâs mostly what I see people wearing.
I think theyâve done a good job of expanding from there. Menâs is 23% of their total revenue and growing (obviously no leggings there) and even womenâs has expanded. But I get it, ultimately weâll have to see what they report
If their sales are increasingly to men then maybe he's not too far off. Men don't spend as much or as often on workout gear.
Nice commentary and keeping it professional when deep down inside I know you (just like I do) want to slap Randal and tell him to just leave. I really dislike when a rogue analyst start preaching bearishly about a stock, especially because this has happened to me too many times. I buy something I think is decent and right before earning or just after, some analyst decides to drop some disparaging rating which actually creates a bit of turmoil and totally kills to earnings potential upside. I actually just bought a handful of shares of LULU at $305 this morning before seeing this video....
Oh man, I'm not from the US and I don't know who the expert is, but this was the worst "expertise interview" on a stock I have seen for a while now. His arguments are wild. Wildly sucked out of his middle finger at that. Insane, people like this get TV time?
So if a guy doesn't like Lulu's colors I guess it's a good reason not to buy the stock đ€Ł. I don't own the stock, but I own the flared leg leggings and there's nothing, and I mean Nothing that compares to Lulu's comfortable, soft and durable fabric. They'll do fine in the long run, are you adding to your position or waiting for the earnings? NVDA will be a beast for the next few years, I was late to the party but glad I bought it back in January.
Agreed that part of the âanalysisâ got me, I was like what?? I havenât been adding only because I donât have cash. If they stay around these levels I will be adding when I make my next cash contribution into my accounts
So.....have you bought anything from any competitors? Asking because millions of people disagree with your assessment of how uniquely awesome Lulu's products are. Are they all just masochists, or broke rubes who can't afford "luxury"?