Jim Cramer expressed optimism about Lululemon Athletica Inc LULU and Dell Technologies Inc DELL in a recent post on X.
What Happened: The host of CNBC’s “Mad Money,” Cramer, stated on Thursday that he thinks Lululemon may have hit rock bottom. He stated, “Thinking Lulu may have bottomed and i am loving Dell here.”
Cramer's comments come as investors closely watch market trends and company performances.
Lululemon recently reported its second-quarter financial results, revealing a revenue miss but an earnings beat. The company posted revenue of $2.371 billion, falling short of the consensus estimate of $2.409 billion.
However, earnings per share were $3.15, surpassing the expected $2.94. The athleisure brand saw a 7% year-over-year increase in total revenue and a 2% rise in comparable sales. Notably, international revenue surged by 29% year-over-year, while America’s net revenue grew by 1%.
Meanwhile, Dell also released its second-quarter earnings, reporting a revenue of $25.03 billion, which exceeded the consensus estimate of $24.14 billion. The tech giant’s adjusted earnings per share were $1.89, beating the analyst estimates of $1.71.
Dell’s total revenue increased by 9% year-over-year, with its Infrastructure Solutions Group seeing a 38% rise in revenue to $11.6 billion. However, the Client Solutions Group’s revenue dipped by 4% year-over-year to $12.4 billion.
Why It Matters: The broader market context also plays a role in Cramer’s optimism. On the same day, Wall Street experienced a rally, with the Dow Jones reaching record highs as the U.S. economy grew by 3% in the second quarter, surpassing earlier estimates.
This positive economic data contributed to a risk-on sentiment among traders, despite some mixed earnings reports from major tech companies like NVIDIA Corp.
Price Action: Lululemon closed at $259.01 on Thursday, marking a slight increase of 0.07% for the day. After hours, the stock surged by 4.24%. However, the stock has declined by 48.75% year to date.
Meanwhile, Dell finished the day at $110.74, down 0.74%. In after-hours trading, Dell’s stock isurged 3.30%. Year to date, Dell’s shares have risen by 48.07%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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