The stock market tumbled on Wednesday driven by steep declines from technology stocks. This was due to the lackluster earnings report from Tesla (TSLA) and Alphabet (GOOG).
Overall, S&P 500 dropped 2.3% to 5,427, while NASDAQ slipped 3.6% to 17,342.
Tweet of the Day
Lower interest rates will help small cap stocks. The trouble is, these small caps carry more risk, so its hard for me to invest in them individually. https://t.co/lc3N5Ugcz3
— David Sharek (@GrowthStockGuy) July 19, 2024
Chart of the Day
Here is the ten-year chart of Lululemon Athletica (LULU) as of June 10, 2024, when the stock was at $318.
Lululemon stock is in a deep decline as American sales growth has slowed. Overall, the company delivered 11% profit growth on 10% revenue growth last quarter. It had grown profits at least 20% a quarter since 2020 Q3.
North America’s revenue increased only 3% year-over-year and same-store sales were flat. On the other hand, Lululemon’s International business is booming with a 35% increase in net revenue and same-store sales growth of 25%. Mainland China was the primary driver of this growth as it posted a 45% increase in net revenue and a 26% rise in same-store sales.
LULU is part of our Growth Portfolio and Aggressive Growth Portfolio. David Sharek, Founder of School of Hard Stocks, expects the stock to bounce back in the coming months.
