Peloton Lululemon Partnership

And, Micron can't stop losing money.

Today is Thursday, September 28, 2023.

The Early Bird Index today is 53.04.

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Peloton Lululemon Partnership

Exercise equipment company Peloton (Nasdaq: PTON) surged by 15.91% in after-hours trading on Wednesday after announcing a five-year partnership with Lululemon Athletica (Nasdaq: LULU).

Details: Peloton is now the exclusive digital fitness content provider for Lululemon, and Lululemon is now the primary athletic apparel partner of Peloton. In addition, Peloton retail stores will sell Lululemon products and Lululemon Studio All-Access Members will have access to thousands of Peloton classes.

Also: Lululemon announced that it will stop selling its studio mirror, which was created to rival Peloton’s mirror product.

Background: The past two years have been awful for Peloton. After growing to prominence during the lockdowns of the pandemic, Peloton came crashing back down to earth. The company has dealt with leadership departures, layoffs, and product recalls.

Stock Price: Peloton’s stock is down 42% this year, including a 20% drop in the last 30 days.

Final Thoughts: This partnership is great for Peloton investors. The company still has a long way to go in terms of recovery, but the partnership is a step in the right direction.

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Notable Earnings Today: Nike (NYSE: NKE), Accenture (NYSE: ACN), CarMax (NYSE: KMX), BlackBerry (NYSE: BB), Jabil (NYSE: JBL), Vail Resorts (NYSE: MTN).

Notable IPOs Today: VS Media Holdings Limited Class A Ordinary Shares (Nasdaq: VSME), iShares Transition-Enabling Metals ETF (Nasdaq: TMET).

Notable Equity Crowdfunding Campaigns Ending Today: Tapville (StartEngine), Apis Cor (StartEngine), This Little Pig (Honeycomb), Eli Electric Vehicles (StartEngine).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), GDP (8:30 a.m. ET), Pending Home Sales (10:00 a.m. ET), Fed Chair Powell Speaks (4:00 p.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Micron Can't Stop Losing Money

Shares of Micron Technology (Nasdaq: MU) dropped by 3.61% in after-hours trading on Wednesday after the computer memory company posted solid financial earnings results.

Financials: Micron reported a loss of $1.07 per share in the past quarter and revenue of $4.01 billion; both were better than expected.

Details: Revenue is down from $6.64 billion during the same period last year. Operating cash flow fell from $3.78 billion during the same period last year to $249 million.

Outlook: The company also expects a likely loss per share for the current quarter.

Stock Price: Micron is up 35% this year, including a 4% uptick in the last 30 days.

Final Thoughts: Despite strong demand for computer chips, Micron is still losing money. The company expects a “market recovery” in 2024 due to increased demand and better supply. Can the rise of artificial intelligence help the company?

Uber Gets New CFO

Uber Technologies (NYSE: UBER) announced a new chief financial officer on Wednesday.

Details: Prashanth Mahendra-Rajah, the current CFO of Analog Devices (Nasdaq: ADI), will take over the CFO role at Uber on November 13.

Final Thoughts: A new CFO should help with Uber’s long-term financial planning. The stock is up 78% this year.

Trends to Watch

Running on Fear: Why fear is spreading in financial markets (The Economist)

Labor Dispute: U.A.W. Says It Could Expand Auto Strikes on Friday (The New York Times)

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