Trade Desk, AppLovin and Lululemon lag after earnings
The Trade Desk, AppLovin and Lululemon are among the S&P 500's top laggards this year, with their shares down 62%, 53% and 52% respectively. The Trade Desk cited weak June-quarter earnings and soft third-quarter revenue guidance.
2% since the year started, and is now hovering near its all-time high. This surge has been driven by industrials, technology, and energy sectors. Still, some popular companies like The Trade Desk (NASDAQ: TTD ), AppLovin (NASDAQ: APP ) and Lululemon (NASDAQ: LULU ) have plunged by 62%, 53%, and 52%, respectively, making them the top laggards this year. The Trade Desk Stock Dived as Growth Decelerated The Trade Desk, which was the best performing company in the S&P 500 Index in 2024, has become a fallen angel as its stock has plunged by 90% from its highest point on record.
This sell-off gained momentum after it released weak earnings. The results showed that its revenue rose by just 3% in the June quarter to $715 million. Worse, the management issued a weak forward guidance, with its third-quarter revenue coming in at $650 million. 66 billion next year.
In a statement, the CEO said: "This quarter did not meet the standard we set for ourselves, but it has reinforced our belief that we are focused on the right opportunities for the future. " AppLovin Dropped Amid Growth and Valuation Concerns AppLovin, another adtech company, has come under substantial pressure in the past few months. It has dropped by over 56% from its highest point last year, and is now hovering at its lowest level since May last year. Read Also: Micron and SanDisk Stocks Rebound as Investors Bet on AI Boom, Cheap Valuations The most recent numbers showed that its business continues growing.
26 billion. While these numbers were good, they missed the management’s and analysts’ guidance. In his statement, Adam Foroughi, the CEO said: "This quarter, we delivered almost $2 billion in revenue, which was just below the midpoint of our guidance range, and our Adjusted EBITDA was just below the range. We’ve always managed this business with the goal of outperforming our own expectations.
" In the aftermath, many analysts tracking the company lowered their guidance. Needham’s Bernie McTernan slashed his target from $500 to $475, while Piper Sandler’s James Callahan lowered from $385 to $325. Other analysts who slashed their targets are from Wells Fargo, Benchmark, BTIG, and Citigroup. Lululemon Slipped as Growth Decelerated Lululemon Athletica has become one of the most troubled companies in Wall Street, with its stock falling from a record high of $516 in December 2023 to $100.
This sell-off continued last week after releasing its financial results. 4 billion, with its Americas division slowing by 8%. Its international business grew by just 4%, a notable thing since it was its driving force in the past few months. Its profit also tumbled.
Focus now is on Heidi O’Neill, who becomes the CEO this week. The hope is on whether she will turn around the company. Read Also: Jensen Huang's Net Worth Up $36 Billion as Nvidia Stock Eyes Surge to Record High Image: Shutterstock