Tesla Early Rebound; Lulu Sinks on Guidance; Broadcom Pullback
Jun 6, 2025
Tesla shares are on the rise as Elon Musk looks to mend fences with President Trump after a dramatic fall. Meanwhile, Lululemon faces a sharp decline due to lowered earnings forecasts and supply chain issues from trade tensions. Broadcom's disappointing revenue outlook is causing concern among investors, with analysts noting the AI spending surge isn't living up to expectations. In contrast, Circle's shares are skyrocketing after a successful IPO, showcasing the mixed bag of market reactions.
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insights INSIGHT
Tesla Rebounds on Musk-Trump Move
Tesla shares rebounded 4% after a 14% slide linked to Elon Musk's political tensions. - Musk's willingness to ease dispute with Trump boosted market sentiment.
insights INSIGHT
Lululemon Cuts Outlook on Tariffs
Lululemon cut earnings outlook by 2.5% due to tariffs and supply chain issues. - Rising competition and traffic declines challenge its sales growth going forward.
insights INSIGHT
Broadcom Faces Revenue Forecast Dip
Broadcom's revenue forecast disappointed despite earnings beats, affecting shares. - AI spending hype may be overstated, impacting chip supplier stock movement.
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- Telsa (TSLA) shares are moving higher this morning as the possibility of easing tensions between owner Elon Musk and President Donald Trump takes shape. The dispute began over differences on the GOP tax legislation, with Musk opposing the bill and Trump accusing Musk of being motivated by self-interest. After Tesla shares tanked 14% and Musk's personal wealth dropped by $34 billion, Musk signaled a willingness to cool tensions with Trump, responding to a user's advice to "cool off and take a step back for a couple days" with "Good advice."
- Lululemon (LULU) share are plunging in premarket trading as the athletic wear maker is reducing its earnings per share outlook by about 2.5% for the full year. It also sees sales below analysts estimates. Lululemon is trying to manage supply chains affected by President Trump's trade wars, and its guidance assumes 30% tariffs on China and 10% on other countries, which could cause a "significant reduction" in profitability.
- Broadcom (AVGO) share are sinking this morning as the chip supplier to companies like Alphabet and Apple gave a lackluster revenue forecast for the current quarter. Analysts suggest that the Artificial Intelligence spending frenzy isn't as strong as some investors anticipated. Like Nvidia, the company is seen as a key beneficiary of a surge in AI spending.
- Circle (CRCL) shares are continuing their climb after the company's successful IPO, with shares surging 168% yesterday and closing at $83.23 in New York. Circle's market value is now $18.5 billion, with a fully diluted valuation of about $22.1 billion, as stablecoins are poised to be regulated by legislation and may lead to larger institutional adoption.
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