The No. 1 Problem Facing Lululemon Right Now

Lululemon has had its share of struggles over the past year, but one Fool thinks the yoga apparel specialist is facing an even bigger problem now.

Jan 16, 2014 at 3:45PM

It seems an understatement to say shareholders of lululemon athletica (NASDAQ:LULU) have had a rough week so far.

The stock kicked off the week with a 17% plunge after Lululemon lowered its fiscal fourth-quarter 2013 revenue and earnings guidance. What's more, you can bet that much of Lululemon's current weakness stems from a combination of offensive comments from company founder and former Chairman Chip Wilson, uncertainty revolving around new CEO Laurent Potdevin, and the lasting repercussions of a massive pants recall last spring.

But according to the Fool's Steve Symington in the following video, Lululemon is facing a much larger problem over the long term. Specifically, Steve says, in order to effectively compete with the likes of Under Armour (NYSE:UA) and Nike (NYSE:NKE) on a global scale, Lululemon needs to convince investors its market opportunity extends beyond that of a mere yoga apparel company.

Luckily for shareholders, management just revealed two particularly encouraging bits of information that indicate it intends to do just that. To hear what they are and for Steve's full take, check out the video below.

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Fool contributor Steve Symington owns shares of lululemon athletica and Under Armour. The Motley Fool recommends lululemon athletica. It recommends and owns shares of Nike and Under Armour. 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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