LULU

Let's uh look at band and then I I also see Lululemon being asked about

I'll actually go to a bigger chart here on Lulu just so we can get a better view of it. I guess the question is, is it finally turning around? And I would say uh I don't know because it looked we've had this kind of price action before where it looked like it was putting in a a bottom or a base of some kind uh only to trade up briefly and then go lower later.

Last year, we published a video about the rise and fall of Lululemon. Over the past decade, Lululemon has grown rapidly and established itself as one of the world’s largest luxury sportswear brands.

The company was extremely profitable and became one of the most sought-after stocks on Wall Street. But over the past three years, the company has experienced a historic decline.

You can see that just by looking at the stock price, which peaked at over $500 in late 2023. This gave the company a market capitalization of over $60 billion.

Nike and Lululemon are among the underperforming sportswear retailers, with their shares trading near 52- week lows. I wanted to know which of these two declining stocks represents a better buying opportunity at the moment .

Both Nike and Lululemon are facing similar headwinds that are hindering sales growth and even pushing them into decline. Overall, Nike is still a much larger company with sales of $46 billion over the past twelve months, while Lululemon comes right behind it.

Lululemon's stock was worth $516 and everyone absolutely loved it. Today, the stock plummeted to below $96, a staggering 81% drop from its all-time high.

At a time when it was expensive and popular, everyone wanted to get a share of it. Now that it has become cheap and hated, hardly anyone wants it, except for one man, Michael Perry, the legend of "The Big Short," who is buying more of it as we speak .

So, in this video, we're going to run through the basics of Lululemon's business. We're going to look at some of their numbers, and then we're going to try to come up with a fair value for Lululemon stock to see if it's worth investing in today.

Now, Lululemon's stock over the past year or so hasn't done that well. The stock is down a decent amount. So, the real question is, is the stock going to recover? Why has this happened?

and can we profit from it now that it has happened.

The headline is Lululemon, the yoga pants company. Bur didn't just buy a little. He made it his largest position estimated around 17% of his entire portfolio.

In his own words, he called it the trickster in my portfolio. when he said, and I quote, "This time the trickster is my largest position." Then Lululemon reported a genuinely awful quarter and the stock crashed below $100.

The big aab be is just coming out right saying I'm short in Lulu actually. You know what? What is that at since the since the earnings report? I feel like it's actually been a hot minute since I've taken a look at that.

Still sub 100. And so and look at this big. So we actually got a little bit of a pop out of the open here. Now I don't know if you're short it today but looks like we did get a little bit of a pop and then it rolled back over Lulu.

Yeah, this it looks like this one's this going to continue to come in uh until you know 80. I think we talked about 80 being the start of a support range. 80 85 I think it was the level that we gave.

Well, I think I think 80 75 80 uh would be my 85. Well, I mean, I I I guess I like 80 better to be honest, but you you're probably right. 85 maybe include.

All right. Right. And so let's move to your next one here because I'm excited to hear how you're looking at Lululemon right now. I mean, really struggling. Investors were really hoping for some strong quarterly results from this company.

They did not come. The turnaround isn't happening. They're citing, you know, more uh pressure and bad press on social media. They're having inconsistent reactions to their product launches.

A lot of issues here, but a new CEO in play, so there is the potential for a strategy change. So, how are you looking at Lulu?