Weekly Roundup: Lululemon Slumps, Deere Rallies, Tesla's Underwhelming Cybercab Launch

0:00brought to you by AppleCard. This summer, earn daily cash back with AppleCard. Apply for AppleCard now and use in minutes with Apple Pay. Subject to credit approval, AppleCard is issued by Goldman Sachs Bank USA Salt Lake City Branch, termsinmoreatapplecard.com. Bloomberg Audio Studios Podcasts, Radio, News The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data. I'm Charlie Pellett and now let's take a look at some of the stocks on the move from the past week. Here she is, Avalon Pernell. Gotta begin with a big story out of Friday, Avalon, and that was Lululemon dropping to an eight-year low this after earnings, but what was going on behind the earnings report? Yes, that's ticker Lululemon. As you said, it did slump about 17% to end the week at its lowest level since 2018. And that's up to the F. Leisure Brand slash its full-year profit in sales forecast. Both of those cuts falling well short of Wall Street's expectations.

1:03And one of the biggest things that really stood out to me was definitely the fact that management called out that their legging sales have declined 20% in the second quarter. BMP Perry Braw actually highlighting that these results reinforced their thesis that people are returning to dress or maybe to put it slightly differently. People are looking for dressier clothing, not necessarily the casual F. Leisure that Lululemon is known for. In worth noting, the company is still set to welcome a new CEO, Heidi O'Neal, next week. So it will be very interesting to see what she decides to prioritize in her first days at the helm. Indeed, Avalon. And I tell you what stood out to me was the headline on the Bloomberg. It says the new CEO quote, inheriting a mess. So it goes beyond leggings. What are some of the other challenges that Lululemon is looking at to indeed been struggling with over the past several years? Oh, I mean, there's just a lot of different things, whether it be people just not really coming in through their doors. I mean, we've also seen some really great reporting from our Lili Meyer, who really had some

2:05great stories about how their sheer leggings have also caused a lot of issues. It's not the first time that that's happened for Lululemon, but definitely a lot of issues. And also bigger competition. You have Aloe, you have Yuri, just a lot of other options that are catching people's eyes that are leading people to not necessarily have to go to Lululemon in the ways that they had to previously. All right. And the other big story involving Lululemon after the bell on Friday, the headline on the Bloomberg, Lululemon founder Chip Wilson and his wife are divorcing Lululemon shares wrapped up the week with a lost Friday of just about 17.4%. All right. Another big stock on the move this past week, dear, we know them for their tractors. Friday we did see the shares decline, little changed down by about one tenth of one percent. But Avalan, what was the big news this week out of dear? Yes, that's ticker DE. It jumped 10% to end the week at a record high. And that's after Baird and Evercore both turned bullish on the tractor maker this week with both brokerages upgrading the stock to outperform.

3:07While both analysts really highlight that agriculture is set to enter an early cycle recovery next year, they did also note that rallying crop prices and investor interest in rotating away from data centers and also other really interest rate sensitive sectors is also helping to aid ag stocks like deer this week and also corn and soy futures are reaching levels that will potentially lead to higher agricultural machine demand. And that's also things that we've already heard echoed from Deer's management that they even mentioned in their earnings call earlier this month. So or actually last month, not at Prince of Tempor. So definitely something we'll be keeping an eye on as well. All right. Deer shares wrapped up the week. $9.693.53. Let us stick with things that move. Tesla stock fell Friday. It was introducing a new cyber cab. Tell me a little bit about what the cyber cab is and why the stock perhaps declined 5.9%. Yes, that is ticker TSLA.

4:10It did inch up 1.5% this week. But that's after the electric car makers invite only closed door cyber cab launch kind of resulted in basically little to no splash for those unfamiliar. The cyber cab is Tesla's driverless car and it does kind of lack some of the traditional driver controls that you find in other robo cars. And yeah, while the event was nearly two years in the making, it still leaves a lot to be questioned. Even Barclays noting that they found the lack of direct communication as somewhat disappointing given the fact that there are a lot of key questions about how exactly the regulatory environment will be for these vehicles given the fact that they don't have your traditional driver controls. And also how many vehicles will be deployed. All of these things will hopefully be a little bit more visible in the days to come. Yeah, I also have to tell you have a lot of the question in my mind is customer response to these things. Would you ride in a driverless vehicle?

5:11You know, I actually haven't even written in like a Waymo yet. So I think I'm going to have to dip my toe in, but I am going to be going to San Francisco soon. So hopefully I'll be able to try out my hand at a cyber cab, Waymo, something we'll see. Avalan Pernell, we thank you. That's Bloomberg's Avalan Pernell covering stocks for Bloomberg. This stock movers report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market moving headlines, listen to Bloomberg Radio live, catch us on YouTube, Bloomberg.com and on Apple CarPlay and Android Auto with the Bloomberg Business app. This message is brought to you by Apple Card, shave ice by the beach, a trip to the state fair and a throwback flick at the local driving. These are more than just items to check off the summer bucket list. They're also opportunities to earn 2% daily cash bank when you use your Apple Card with Apple Pay. Apply for Apple Card now and use in minutes with Apple Pay.

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