00:00Let's start with Lululemon. This stock, taking it on the chin here in the pre-market, down 12%.
00:05So if that holds, Lululemon's going to hit its lowest level since 2018.
00:10The stock has declined 40% so far this year. It's one of the worst performers in the S&P
00:15500.
00:16So why? All right. Well, the most recent news, yes, Tom wants to say something.
00:22I'm listening.
00:23Oh, this is him listening.
00:25They lower their annual forecast, deteriorating demand in North America, revenue and profit guidance for the current quarter also below
00:34expectations.
00:34So here are the problems, and they are piling up for Lululemon.
00:38Increased competition from brands like Aloe.
00:41I passed their store the other day, just yesterday on Fifth Avenue.
00:44Bunch of people in there.
00:45Spade of poor product launches, like those see-through leggings.
00:48Who wants to wear see-through leggings?
00:51I try.
00:53They're also facing a probe from the Texas Attorney General's Office over the alleged use of Forever Chemicals.
00:59Then you've got their billionaire founder, Chip Wilson, criticizing the company.
01:02Can I ask a dumb question?
01:04Yeah, do it.
01:04Are they just out?
01:05I feel like with the young kids, they are.
01:09They used to have a cool factor and the edge, and I feel like something's missing.
01:14That's CFA, that's CFA, are they out?
01:17There you go.
01:17And so they're getting a new CEO, Heidi O'Neill.
01:20So she definitely has her work cut out for her when she takes over in September.
01:25Let's move on to DocuSign, ticker symbol DOCU, down 4.6%.
01:30It is off 25% year-to-date.
01:32This is an electronic signature company.
01:33He reported a rise in first quarter profit yesterday after the market closed and guided
01:38for a slight increase in revenue.
01:40And here's when you get into the minutia.
01:42The annual recurring revenue rate was unchanged, like between 8.25 and 8.75, and investors might
01:49be disappointed by that.
01:50They want sort of a timeline for when DocuSign is going to return to double-digit revenue
01:54growth.
01:55But overall, an analyst over at Jeffrey's said, these results from DocuSign, they show
01:59a good start to the year, especially given the lack of any negative AI impact.
02:04I mean, I think that's as good as we can hope for now, as these companies are not coming
02:06out and saying, we've been clobbered by AI.
02:10All right, and let's move on to actually a triad of companies that are being hit by what's
02:16happening with Bitcoin.
02:17So these cryptocurrency-related companies, Coinbase, Robinhood, Strategy, they are all lower
02:23in the pre-market.
02:24This is as Bitcoin now drops about 2.5%, so just below $62,000.
02:30It was lower even earlier this morning.
02:32And by the way, it's not just Bitcoin.
02:33I checked out Ether, lowest level in over a year now, falling more than 8% to 16.25.
02:40But look, it all started on Monday, right, when Strategy announced it sold a small sum
02:45of Bitcoin for the first time since 2022.
02:48And their head, Michael Saylor, remember, had said, I'm never selling.
02:51So I think that really freaked the markets out.
02:53Yeah, I agree with that.
02:54But what else is going on?
02:56And I don't have a straight answer.
02:57I don't know.
02:57They're seeing a lot of outflows from these cryptocurrency ETFs.
03:01From ETFs, is that what Bill Tunis and companies say?
03:03Exactly.
03:04Exactly.
03:04Okay.
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