WEBVTT - Lululemon and DocuSign Drop; Coinbase Follows Bitcoin Lower

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,

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<v Speaker 2>Strong On a Friday, was Stockmovers is Alexis Brunson.

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<v Speaker 3>Oh sho I am when I adopted this entire series,

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<v Speaker 3>That's who I am? SENDBASI. Okay, let's start with lulu Lemon.

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<v Speaker 3>This stock taking it on the chin here in the

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<v Speaker 3>pre market down twelve percent, So if that holds, Lululemon's

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<v Speaker 3>going to hit its lowest level since twenty eighteen. The

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<v Speaker 3>stock has declined forty percent so far this year. It's

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<v Speaker 3>one of the worst performers in the S and P

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<v Speaker 3>five hundred. So why all right? Well, the most recent news, Yes,

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<v Speaker 3>Tom wants.

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<v Speaker 2>To say, I'm listening.

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<v Speaker 3>Oh oh, this is him listening. Oh listen, this is

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<v Speaker 3>they lowered their annual forecast, deteriorating a demand in North America.

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<v Speaker 3>Revenue and profit guidance for the current quarter also below expectation.

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<v Speaker 3>So here are the problems and they are piling up

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<v Speaker 3>for Lululemon. Increase competition from brands like Alo Pass their

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<v Speaker 3>store the other day, just yesterday on Fifth Avenue, a

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<v Speaker 3>bunch of people in there. Spate of poor product launches

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<v Speaker 3>like those see through leggings. Who wants to wear sea

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<v Speaker 3>through leggings?

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<v Speaker 2>I try.

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<v Speaker 3>They're also facing a probe from the Texas Attorney General's

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<v Speaker 3>Office over the alleged use of Forever chemicals. Then you've

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<v Speaker 3>got their billionaire founder, Chip Wilson criticizing the company.

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<v Speaker 1>It's question, Yeah, do are they just out?

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<v Speaker 3>I feel like with the with the young kids they are,

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<v Speaker 3>they used to have a cool factor and the edge,

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<v Speaker 3>and I feel like something's missing. Yeah, there you go.

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<v Speaker 3>And so they're getting a new CEO, Heidi O'Neal. So

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<v Speaker 3>she definitely has, you know, her work cutout for her

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<v Speaker 3>when she takes over in September. Let's move on to Docuse.

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<v Speaker 3>Ticker symbol DOCU down four point six percent. It is

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<v Speaker 3>off twenty five percent year to date. This is an

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<v Speaker 3>electronic signature company. Reported a rise in first quarter profit

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<v Speaker 3>yesterday after the market closed, and guided for a slight

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<v Speaker 3>increase in revenue. And here's when you get into the minutia.

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<v Speaker 3>The annual recurring revenue rate was unchanged like between eight

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<v Speaker 3>and a quarter and eight and three quarters, and investors

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<v Speaker 3>might be disappointed by that. They want it sort of

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<v Speaker 3>a timeline for when DocuSign is going to return to

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<v Speaker 3>double digit revenue growth. But overall, an analyst over at

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<v Speaker 3>Jeffrey said, these results from docusigine, they show a good

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<v Speaker 3>start to the year, especially given the lack of any

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<v Speaker 3>negative AI impact. I mean, I think that's as good

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<v Speaker 3>as we can hope for now, as these companies are

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<v Speaker 3>not coming out and saying we've been clabbered by AI,

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<v Speaker 3>all right, and let's move on to actually a tryad

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<v Speaker 3>of companies that are being hit by what's happening with bitcoin.

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<v Speaker 3>So these cryptocurrency related companies, Coinbase, a robin Hood Strategy,

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<v Speaker 3>they are all lower in the pre market. This is

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<v Speaker 3>as Bitcoin now about two and a half percent, so

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<v Speaker 3>just below sixty two thousand dollars. It was lower even

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<v Speaker 3>earlier this morning. And by the way, it's not just Bitcoin.

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<v Speaker 3>I checked out Ether lowest level in over a year

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<v Speaker 3>now falling more than eight percent to sixteen twenty five.

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<v Speaker 3>But look, it all started on Monday, right when a

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<v Speaker 3>strategy announced it sold a small sum of bitcoin for

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<v Speaker 3>the first time since twenty twenty two, and their head

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<v Speaker 3>Michael Saylor, remember, had said I'm never selling, So I

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<v Speaker 3>think that really freaked the market side.

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<v Speaker 2>I should agree with that, But what else is going on?

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<v Speaker 2>And I don't have a straight answer.

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<v Speaker 3>I don't know. They're seeing a lot of outflows from

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<v Speaker 3>these cryptocurrency et yes, exisode. Yeah, some companies se exactly,

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<v Speaker 3>and they're sort of decoupled now from the tech rally

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<v Speaker 3>because they were running in tandem and now they're not.

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