On this episode of Stock Movers:
- Shares of Broadcom (AVGO) tumbled in premarket trading after its sales outlook for the red-hot market failed to meet investors’ lofty expectations. The shares fell about 5% in premarket trading on Friday, following unsettling commentary from Chief Executive Officer Hock Tan on a conference call with analysts. He said the company has a backlog of $73 billion in AI product orders that will be shipped over the next six quarters — a number that disappointed some investors. But Tan sought to clarify that the figure was a “minimum.”
- Shares of Lululemon Athletica (LULU) rallied ahead of the US market open after the athleisure purveyor boosted its full-year earnings-per-share guidance, called early holiday performance encouraging, and announced a $1 billion increase to its stock buyback program. Lululemon’s fiscal third-quarter report had several positive nuggets for investors after a tough year. Profit and comparable sales beat analyst expectations in the quarter, driven by growth in international markets. Revenue in the US slipped 3% on a constant-currency basis. The company is also searching for a replacement for CEO Calvin McDonald, who will depart the top post at the end of January.
- Shares of Tilray (TLRY) and other cannabis brands soared in the early trading session as President Trump is expected to direct his administration to move to reclassify marijuana as a less dangerous drug, according to people familiar with the matter, a move that could represent one of the biggest shifts in US policy toward cannabis in decades. Trump has discussed the idea with marijuana industry executives, Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services Administrator Mehmet Oz, the people said. A White House official said no final decisions have been made on rescheduling.
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