Motley Fool Money Can These Three 2025 Losers Turn It Around?
Dec 29, 2025
Investment analysts Travis Hoium and Tom King dive into whether Supermicro, Lululemon, and Nike can bounce back from their 2025 struggles. They tackle Supermicro's dangerous audit problems and mounting debt, ponder Lululemon's brand resilience amid fashion shifts, and critique Nike's strategic missteps under new leadership. While there's hope for Supermicro's AI potential, both guests caution that Nike's turnaround won't happen overnight. A lively analysis of these companies' futures awaits!
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Audit Red Flags Raise Big Risk
- Supermicro faces high risk after auditors refused to sign its 2024 statements and margins compressed in 2025.
- Heavy borrowing and $3.3B inventory buildup mean the company needs strong AI demand to avoid a severe meltdown.
Avoid Betting On A Troubled Turnaround
- Avoid assuming a turnaround until Supermicro proves it can sell the built inventory at good prices and restore auditor trust.
- Consider safer AI exposure like Alphabet instead of betting on a troubled comeback story.
Brand Strength Versus Fashion Momentum
- Lululemon's stock plunged in 2025 due to stale inventory, weaker comps, and missed product hits.
- Tom King believes the brand remains strong and could be a 3–5 year recovery, while Travis warns of shifting fashion momentum.