Stock Movers Strategy Higher, Karman Rises Lululemon Tumbles on Weak Earnings Report
Sep 5, 2025
Shares of MicroStrategy rose as crypto-related stocks gained momentum alongside Bitcoin and Ether, fueled by hopeful job data predictions. Karman Holdings saw a significant uptick after earning a strong-buy rating from Raymond James. Meanwhile, Lululemon faced a downturn as it slashed its outlook due to weakening demand and impacts from new trade policies, warning of a hefty $240 million loss. The discussion highlights how market dynamics and company performances intertwine to shape financial landscapes.
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MicroStrategy Hits S&P Eligibility
- MicroStrategy became eligible for S&P 500 inclusion after reporting a large unrealized gain that met profitability rules.
- Inclusion could force passive funds to buy roughly 50 million shares, shifting demand dynamics for the stock.
Watch Index Rebalances For Big Flows
- Pay attention to index-rebalance dates because eligibility changes can trigger large passive flows into a stock.
- Monitor profitability metrics and unrealized gains for surprise index candidacy signals.
Index Funds Could Boost MicroStrategy Demand
- Vanguard already holds significant MicroStrategy shares indirectly through index funds, increasing passive exposure.
- That dynamic benefits insiders like Michael Saylor if index inclusion occurs at the rebalance.