Stocks Rally After Meta’s Earnings Beat Expectations

The stock market rose on Thursday as strong quarterly results from Meta Platforms (META) drove a strong week of tech earnings.

Overall, S&P 500 increased 2.0% to 4,135, while NASDAQ grew 2.4% to 12,142.

Tweet of the Day

Chart of the Day

Our chart of the day is the one-year chart of Lululemon Athletica (LULU) as of April 19, 2023, when the stock was at $370.

Lululemon is a Canadian designer, distributor, and retailer of high-quality athletic appeal and accessories, marketed under the Lululemon brand. The brand is known for its technically advanced fabrics, with a superior feel and fit. Apparel items include pants, shorts, tops and jackets designed for yoga, running, and training.

In our last Lululemon research report, David Sharek was worried the company would have to mark down items due to inventory levels being up 85% in a year. However, it turns out this helped boost sales, which jumped a solid 30% last quarter. Profit margins did decrease a bit, which management had worked us about, but profit growth was still 31% last quarter. Direct to consumer sales jumped a whopping 37% and accounted for more than half (52%) company sales.

LULU is part of the Growth Portfolio and Aggressive Growth Portfolio. David Sharek thinks it is a 30% grower long-term.

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