Nvidia Corp. (STAR)
NVDA - Nasdaq
You know, maybe this artificial intelligence thing will catch on after all. Having already gained more than 90 per cent this year, shares of Nvidia Corp. soared to a new record high after the world’s largest maker of AI chips announced first-quarter results that crushed Wall Street’s expectations. Driven by strong growth in its data centre business, revenue jumped 262 per cent to US$26-billion and earnings shot up 628 per cent to US$14.9-billion or US$5.98 a share. The company also hiked its dividend by 150 per cent and announced a 10-for-one stock split. A few more quarters like this and we’ll know if AI is more than a flash in the pan.
Lululemon Athletica Inc. (DOG)
LULU - Nasdaq
For years, Lululemon Athletica Inc’s. apparel has been popular with people who like to work up a sweat. Now, it’s Lululemon investors who are sweating. With the stock already down sharply this year amid growing competition from upstart brands such as Alo and Vuori, the shares took another hit on news that Lululemon’s chief product officer, Sun Choe, is leaving to pursue another opportunity. “Clearly, the narrative around the company has worsened,” said Wedbush analyst Tom Nikic, who slashed his stock price target to US$397 from US$492. All of this explains why LULU is nursing a boo-boo.
Peloton Interactive Inc. (DOG)
PTON - Nasdaq
Test your business knowledge! Shares of Peloton Interactive Inc. retreated after: a) the company’s new “Human Hamster Wheel” product was recalled after dozens of users chipped their teeth on the metal water spout; b) North Korean agents hacked into Peloton’s fitness bike app, causing the screen to display a video of Kim Jong Un barking commands such as, “Pedal faster, weak American!” and “Tell the dotard that Little Rocket Man says hi!”; c) the struggling company announced a refinancing that includes a US$300-million offering of 5.5-per-cent convertible notes, a $1-billion five-year term loan and a $100-million five-year revolving credit facility. Answer: c.
e.l.f. Beauty Inc. (STAR)
ELF - NYSE
They say beauty is only skin deep. Well, yeah, if you peel off someone’s skin they’re going to look scary. Duh. Anyway, what’s both beautiful and deep is the stack of money e.l.f. Beauty investors are making. Shares of the cosmetics and skin care company – whose initials stand for eyes, lips and face – were giving off a healthy glow after net sales surged 71 per cent to US$321.1-million in the latest quarter, beating expectations and easing fears about a slowdown in the beauty industry. With the stock up more than 80 per cent in the past 12 months, despite a pullback earlier this year, investors’ portfolios are looking beautiful indeed.
Bombardier Inc. (STAR)
BBD-B - TSX
For years, owning Bombardier Inc. shares was the financial equivalent of throwing a stack of $1,000 bills out an open airplane window. Well, Bomber is back, baby! Having jettisoned its other businesses to focus on private jets, the company is enjoying a strong demand tailwind that began during the COVID-19 pandemic when more corporations and wealthy folks started buying their own planes instead of travelling with the masses. With Bombardier’s long-term debt falling to about US$5.6-billion from more than US$10-billion a few years ago and the share price more than quadrupling from its 2022 lows, investors are finally enjoying a smooth flight.