Lululemon and SodaStream Tank

Major indexes again are down.

Jan 13, 2014 at 1:00PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

With earnings season starting last week, and the major banks scheduled this week to show investors how they performed in the fourth quarter, the major indexes are down. As of 1 p.m. EST, the Dow Jones Industrial Average (DJINDICES:^DJI) is down 105 points, or 0.64%, while the the S&P 500 is off by 0.67%  and the Nasdaq is down by 0.64%.

The Dow's banking stocks are lower, while credit card companies are mixed. Shares of American Express (NYSE:AXP) are up 0.52%, while Visa (NYSE:V) is higher by 0.33%. These moves come as the card hacking that hit Target last year is now known to have spread to other retailers. Over the weekend Neiman Marcus reported that it had a similar threat around the time Target was attacked. Experts believe that other retailers will report similar incidents in the coming months once they figure out they also have been targeted.

Outside the Dow, shares of the popular do-it-yourself soda maker SodaStream (NASDAQ:SODA) are down more than 20% today. Another big loser is lululemon athletica (NASDAQ:LULU), which has lost more than 15%. The declines come after management from each company cut their guidance for the coming quarterly report. Lululemon's CFO said that traffic and sales trends have dropped "meaningfully," which prompted an analyst from Buckingham Research Group to say that it looks like we are at the beginning of lululemon's problems, not the end, which was followed by a recommendation to aggressively reduce your position in the company.  

SodaStream management apologizing for failing to meet profits targets. The company reported preliminary results for the fourth quarter, with sales coming in at $562 million, compared to the forecast of $567 million and Wall Street's expectation of $567.2 million. But net income was where the big problem was, coming in at $41.5 million -- 23% lower than the forecast of $54 million.  

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Fool contributor Matt Thalman owns shares of Lululemon Athletica. The Motley Fool recommends American Express, Lululemon Athletica, SodaStream, and Visa. The Motley Fool owns shares of SodaStream and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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