r/stockmarket
LULU is down 50 % year to date. I don’t believe it will ever go below $100.
Bought LULU at a massive valuation discount, expecting a stronger macro-driven rally compared to NKE.
- Massive valuation contraction relative to historic performance.
- Robust international growth and strong balance sheet.
- Expected to rally more than peers when macro conditions improve.
- Short-term price action remains weak, down 50% YTD.
- Recovery is highly dependent on macro improvements and geopolitical events.
I bought 2,000 LULU shares today. A few hours later they were worth 4 % less than what I paid for them. I caught this knife knowing that might happen though. I don’t care if they sell tights or pineapples, its massive valuation contraction relative to its historic performance, robust international growth, and strong balance sheet is crazy.
I don’t really care if I own NKE or LULU. I’m pretty sure both of them will never get much cheaper than their current prices. I predict NKE will never go below $40 and LULU won’t go below $100. I might jump ship in a month or two because I think LULU will rally more than NKE when macro improves. If a peace deal happens I’m pretty sure LULU will go back to $120.
I might hold it for five years who knows.