Breakfast News: Elliott's $1B LULU Stake
December 18, 2025
| Wednesday's Markets |
|---|
| S&P 500 6,721 (-1.16%) |
| Nasdaq 22,693 (-1.81%) |
| Dow 47,886 (-0.47%) |
| Bitcoin $85,800 (-2.14%) |
1. Elliott Vies to Replace LULU CEO
Elliott Investment Management has built up a stake of more than $1 billion in Lululemon (LULU 1.07%) to become one of the company's biggest shareholders, The Wall Street Journal claims. The activist investor is reportedly lining up former Ralph Lauren CFO and COO Jane Nielsen to drive a turnaround at the struggling athletic clothing maker. The stock popped 4.5% in pre-market trading.
- "Lululemon is one of the most powerful brands in retail, defined by exceptional products": Nielsen said "I would welcome the chance to discuss this opportunity with the Lululemon board," as current CEO Calvin McDonald is due to step down in January.
- "LULU's recovery is still pending and will take time": Commenting on third-quarter results – which saw international sales up 33% while the U.S. business suffered under cost pressures – Fool analyst Sanmeet Deo, CFA, noted: "With a $1B buyback boost, LULU is buying time to fix its home market while running hard overseas."
2. Micron Jumps on Memory Demand
Micron (MU +3.77%) posted record results in its first quarter after yesterday's market close, boosted by soaring AI demand for memory chips and storage products, with cloud memory revenue almost doubling year over year (YoY). The company lifted its Q2 profit forecast to double what Wall Street was expecting. Micron spiked 9.5% overnight.
- "AI-related demand remains the biggest driver for Micron": Kinngai Chan at Summit Insights suggested AI demand also helps drive non-AI margins, "as it prioritizes its supply toward AI-related demand."
- Sandisk soars 476% in 12 months: Fear of supply shortages as the AI giants swallow up the global memory supply is boosting storage producers, pushing Sandisk (SNDK +2.12%) up another 5% overnight.
3. Next Up: Key Earnings, Inflation
Hidden Gems recommendation Accenture (ACN 0.24%) reported a 12% rise in new bookings in Q1, to $20.9 billion – up 10% in local currency. AI new bookings contributed $2.2 billion, as the company estimates 2% to 5% revenue growth (in local currency) for the 2026 fiscal year. The results boosted the stock 3% in early trading.
- Superscore of 61 on our Rule Breakers Primary database: Data and analytics provider FactSet (FDS 0.27%) this morning reported Q1 revenue of $607.6 million, a 6.9% rise over the same quarter last year. The company now plans $1 billion in share repurchases, up from $400 million. The stock ticked up 1%.
- Eyes on retail today: The November consumer price index print is due this morning, with YoY inflation expected to edge up to 3.1%. We should see what effect that has on Nike's (NKE +4.46%) Q2 earnings this afternoon, following a 30% earnings drop last time. Nike is just 2% below the S&P 500's rise since its May 2025 Stock Advisor rec.
4. Your Take
Which stocks among the worst-performing sectors of 2025 so far – Consumer Staples (e.g. McCormick (MKC 0.03%) or CostCo (COST +2.03%)), and Real Estate (e.g. American Tower (AMT +0.23%) or Weyerhaeuser) – would you feel most comfortable buying and holding now for the next 5 years, and why? Don't limit yourself to the companies mentioned as examples here, of course! Share with friends and family, or become a member to hear what your fellow Fools are saying.
