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On this episode of Stock Movers, we take a look at some of the week's biggest gainers and decliners:
- Shares of Skyworks (SWKS) surged after CEO Philip Brace updated investors about the status of a key merger. The stock gained 26%, the best five-day session streak since a stretch in February 2009.
- Lululemon's (LULU) turnaround won't be a quick or easy fix as the company cedes market share to rivals and suffers deepening sales declines, according to BMO Capital Markets. BMO initiated coverage of the stock with an underperform rating and a $70 price target, assuming a roughly 29% decline from where the shares closed on Friday. Analysts say the company's "irrelevance with the consumer is showing up in the numbers" and that Lululemon will need to cut prices or liquidate merchandise to reinvigorate demand, which will also pressure margins. During trading on Friday, share rose to just under $100 per share at the close in New York. While the average price target of about $100 is near where shares traded at Friday’s close, the stock has slumped 52% this year and is down more than 80% from a December 2023 record.
- Cooper (COO) led the decliners in health care and lowered its full-year-outlook. On Thursday, it saw its shares tumble as much as 20%, the most intraday since 2008.
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Stock Movers — Weekly Roundup: Skyworks Surges, Lululemon Falls, Cooper Drops. Machine-transcribed; use the interactive transcript above to jump the player to any line.
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You think about Apple, and typically we often do that, right? We take a look at a big name like that, because when they're making purchases or whatever, if it's good or bad news, it certainly impacts their supply chain. So SkyWork Solutions, as you said, one of the outperformers this week, all right, Lulu Lemon. Yes, not an outperformer this week. I mean, that's ticker. I keep telling Tim by your yoga pants. You know, can I tell you something? You do. Can I tell you something? You can tell me. You can tell me anything. I walked into Lulu Lemon a few weeks ago, and I bought a pair of shorts. That's because you're going to credit for me. That is because I get credit from American Express. Carol, you know me too well. What are my two that I'll have to do it? You have to do it by the end of this month. Okay. Okay. I forgot about that. I got, I had lost my... Did you buy socks? Did you just say that? No, about my swimsuit. Oh, okay. You get $75 per quarter. That's right. And... Are you talking about... Since in Addy, there was a Lulu Lemon right there. And I'm going to get a British suit.
I shipped them to New York. There you go. And I like them. They're really nice. So anyway, sorry, now I'm going to people are buying swimsuits from Lida Lemon. This is very true, and they actually just gained another cell equivalent rating, Bimo, actually, opening coverage with an under-perform rating, noting that they consider the product engine that has fueled this company for years. It's a little bit still right now. It's just a lot of competition within the affleisure space. Okay, hold on. This analyst could have said the same thing a year ago, or two years ago, about Lulu, because everybody was saying that about Lulu. That's the challenge that this company has. Exactly. And they're bringing in, I mean, this week, they just had a new CEO begin, and so it'll be really interesting to see what Heidi O'Neill decides to prioritize. Considering it's a pretty difficult picture and a fairly negative sentiment from a lot of investors in this company. She's got a work cut out for her. This is a sub-five billion dollar market cap. Company. Oh, no, I'm sorry. I was looking at the wrong one. Full transparency. I love the little stuff. It lasts. It just does like this. This is a, sorry, sub-11 billion dollar market cap company.
Excuse me. I was looking at the wrong screen. Okay. All right. Thank you for that. Sorry. Can we go to Cooper? We share a can. That's ticker COO. Had to bring in a healthcare name. It fell 23% to end its worst weeks since 2008. And that's after it's slashed its annual profit guidance and also revenue guidance. And just generally had a disappointing performance that led to at least four downgrades across Wall Street. Out with William Blair mentioning that it's just have reduced visibility on how exactly their recovery looks like from here. Their contact lenses, right? Yes. This stock movers report from Bloomberg Radio. Check back with us throughout the day for the latest round up 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.
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