Lululemon Athletica Inc (NASDAQ: LULU) is not very likely to command a higher multiple until it manages to lift its US sales, as per Anna Andreeva of Piper Sandler.

The athletic apparel retailer topped estimates but its domestic business remained a laggard in its third financial quarter.

“Historically, the number one driver of LULU’s multiple is US comp. The company reported flat US sales. That’s pretty disappointing,” Andreeva told CNBC in an interview today.

Nonetheless, Lululemon shares are up some 10% following the Q3 earnings release last night.

Lululemon’s operating margin could take a hit

An uptick in sales at Lululemon on Black Friday failed to uplift the Piper Sandler analyst as well.

That’s because the shopping day was strong for the industry across the board – the strength was not unique to Lululemon at all.

Another green area in LULU’s earnings release last night was its operating margin which now sits at a peak of about 22%.

But Anna Andreeva took even that with a pinch of salt as the company is investing rather aggressively in marketing, which could weigh on its margins in 2025.

And it’s not like Lululemon shares pay a dividend in writing to appear any more attractive for the income investors either.

LULU is not inexpensive to own at current levels

Lululemon stock is currently going for about 26 times its forward earnings.

While that’s down significantly from over 30 times at the start of this year, the Piper Sandler analyst is focused more on how much the stock has gained in recent months.

LULU traded at under 20 times in August – and that makes it expensive at writing until it turns green on US comps, according to Anna Andreeva.  

Her “neutral” rating on Lululemon shares is coupled with a $340 price target that suggests they could lose their entire post-earnings gain in the coming weeks.   

Lululemon faces intense competition

On “Worldwide Exchange”, Anna Andreeva of Piper Sandler agreed that Lululemon is a fantastic brand.

Still, rising competition from the likes of Alo and Vuori could increase its cost of incremental customer acquisition in the coming year, she added.

For the holiday quarter, Lululemon guided for $3.495 billion in revenue – a tad below $3.50 billion that analysts had forecast. Its outlook for per-share earnings at $5.60, however, marginally topped experts’ estimates of $5.59 billion.

“While we feel good about the holiday season, we still have large volume weeks in front of us. Given the shorter holiday season, we continue to be thoughtful in our planning for quarter four overall,” Calvin McDonald – the chief executive of Lululemon said in a press release last night.

Lululemon’s earnings arrived more than a month after it signed a significant deal with the NHL.  

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Uber Technologies Inc (NYSE: UBER) is in focus this morning after teaming up with WeRide to launch robotaxis in Abu Dhabi.

WeRide is a self-driving startup that already holds permits for its autonomous cars in several countries, including Singapore, UAE, the United States, and its hometown – China.

The Uber-WeRide news arrived only a day after Waymo, the AV business of Google, announced plans of expanding to Miami. Uber stock opened 2.0% up following the announcement on Friday.

When will Uber launch autonomous rides in UAE

Uber plans on bringing robotaxi rides to Abu Dhabi in 2025.

Initially, such rides will have a human driver present to “ensure a secure and reliable experience for riders and pedestrians.” The commercial service will then go fully driverless in the back half of 2025, as per a press release on Friday.

Uber’s autonomous rides will be available to hail from and to the Zayed International Airport – and will operate between Yas and Saadiyat islands as well.

The announcement can be seen as Uber’s response to recent concerns that autonomous vehicles that are broadly expected to flourish under the Trump administration could make incremental growth more challenging for it in the coming years.  

Such concerns have materially weighed on Uber stock that’s now down well over 20% versus its high in October.

Uber has a dozen other AV partnerships

Uber’s team up with China’s WeRide is only one example of how committed the company is to using autonomous vehicles to its benefit.  

The NYSE firm has signed similar agreements with a dozen other self-driving companies.

“Our autonomous strategy is working. AV partners are understanding the significant value Uber can bring to their deployment plans,” its CEO Dara Khosrowshahi told investors on a recent earnings call.

Redburn Atlantic analyst James Cordwell also expects autonomous vehicles to meaningfully “expand the addressable market” for Uber as it’s well positioned to be the “aggregator of autonomous vehicle providers.”

The investment firm has a $90 price target on Uber stock that translates to about a 40% upside from here.

Uber continues to beat Street estimates

The Uber-WeRide news arrives shortly after Uber Technologies reported market-beating results for its third financial quarter.

Uber reported a 13% annualised growth in monthly active users to 161 million and a 17% year-on-year increase in trips completed on the platform to 2.9 billion at the time.

For its current quarter, the New York-listed firm expects $1.78 billion to $1.88 billion in adjusted EBITDA – roughly in line with Street estimates.

The strength of the company’s financials makes up for another good reason to own Uber stock even though it doesn’t currently pay a dividend.  

Uber shares are up some 13% versus the start of this year at writing.

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BlackRock launched options on its Bitcoin exchange-traded funds (ETFs) on November 19, 2024, in a landmark event that looks set to bring cryptocurrencies into the mainstream for institutional and retail investors. This is a moment in crypto history. 

As financial markets start to feel the effects of yet another major endorsement for the industry, the financial press is reeling with the impact of one single product and what that means for the future.  

The Bitcoin ETF options launch

Blackrock initially launched its iShares Bitcoin Trust (IBIT) in January and debuted options on the Nasdaq Stock Exchange on November 19th.

This was the first time a spot Bitcoin ETF offering options has traded publicly in the United States, and the results were astounding.  

Over 354,000 contracts were traded on the record-setting first day, with a notional value of $1.9 billion. 

Perhaps even more impressive than the sheer volume was the sentiment, with a 4.4:1 call-to-put ratio. 

There’s growing support for Bitcoin on the market as investors, both large and small, realize it’s not too late to profit from the original cryptocurrency. 

Binance CEO Richard Teng, leader of the largest cryptocurrency exchange by volume, commented on the effects of options trading on crypto markets,

While uncertainty always accompanies innovation, the alignment of traditional and crypto markets through tools like options suggests a maturing landscape. These developments are a response to existing demand but also a catalyst for new opportunities. It is reasonable to expect that products like BTC ETF options will play a significant role in sustaining and accelerating the momentum of digital assets.

IBIT took its place in the top 20 most active non-index options on the exchange. These financial packages like ETFs give traditional investors the contracts and paperwork they’re used to while exposing them to the crypto market. It’s a short step from buying an ETF to loading a crypto wallet, so this has to be good news for the industry. 

Senior Bloomberg ETF analyst Eric Blachunas said: “$1.9b is unheard of for day one. For context, BITO did $363 million, and that’s been around for four years. And also, this is with 25,000 contract position limits. That said, $1.9b isn’t quite a big dog level yet, [though]. GLD did $5 billion today, but give it a few more days/weeks.”

Record Inflows into BTC ETFs

The launch of this Bitcoin ETF spurred a general influx of capital into all Bitcoin ETFs, with $816 million in a single day.

That was a 220% increase over the previous day’s levels, and institutional investors are going for more than just the BlackRock ETF.

Bitcoin Future ETFs also saw a 30% boost in trading volumes, and it’s a clear sign that investors are ready to buy into these ETF funds. They want to speculate on the price movement without necessarily holding Bitcoin. 

Bitcoin’s response 

This was a big day for Bitcoin, too, as it powered past the $90,000 mark in the wake of the options launch and hit an all-time high of $99,489.

There was a ripple effect through the cryptocurrency exchanges with people looking to buy in.   

BlackRock is about as establishment as it gets, so this launch is about something bigger. It’s the old world’s seal of endorsement for the asset class.

ETFs are crypto investing lite, but they are also a regulated and accessible way to trade Bitcoin derivatives without the heavy lifting. It is easy to see the appeal. 

Institutional adoption snowballs

This monumental hit by BlackRock has already spurred several other financial institutions into action.

Greyscale Investments will soon introduce options trading for its sport Bitcoin ETFS, and others will follow. These are new products that allow people to invest in Bitcoin without any actual exposure to crypto.  

Crypto options trading could also become a major profit center for institutional players and old-world investment banks.

Many of the same strategies apply, and this could turn into a lucrative niche in the new financial world. 

Options can drive liquidity

Options trading has given a whole new element to Bitcoin ETFs and turned them into a much more liquid and attractive package for the institutions and the investors.

Giving investors the chance to speculate on Bitcoin’s price movements essentially creates a whole new financial battleground. 

This increased liquidity should help stabilize the crypto market and reduce the dramatic price swings that have been issues for institutional investors in the past.   

Comparison to previous milestones

All the way back in October 2021, Futures-based Bitcoin ETF options launched in the US. It was another great milestone, but the products didn’t live up to the hype.

They faced criticism for their reliance on derivatives, which added complexity and cost.   

Spot Bitcoin ETFs are much simpler and a way to tap into Bitcoin’s price movements without committing fully to crypto trading and holding. Options trading adds a level of sophistication and will bring in professional investors.  

Challenges and risks

A lot will depend on Bitcoin’s performance in the weeks and months ahead. Bitcoin is flying in the wake of the presidential election, but a major price drop could test people’s appetite for crypto.  

Regulation is still an absolute minefield and differs from nation to nation, as certain regulators take a tougher stance on the systemic risks crypto can pose to the existing financial system.  

This lack of clarity is an obstacle to institutional investment, and the World Economic Forum is attempting to solve this with international standards.

There is always the novelty factor as well. Right now, these ETFs are the flavor of the month.

There is always something newer and shinier around the corner, though, so it remains to be seen if Bitcoin ETFs are here for the long-haul or if this is a short-term boost for the crypto industry.  

Conclusion 

The launch of spot Bitcoin ETF options is a turning point for the industry. From BlackRock signing it off to the record-breaking response, this is a giant leap towards respectability for the crypto community.

November 19th, 2024, was a landmark year for Bitcoin, BlackRock, and the financial markets, and it may have a profound impact on all of their futures. 

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Affirm stock price has done well this year, and is hovering at its highest level since 2022 as demand for its services rise. It was trading at $71.88, up by 725% from its lowest level in 2023.

Technicals suggest that Affirm stock could keep rising

A closer look at the weekly chart suggests that the AFRM stock price has more upside to go in the near term. After bottoming at $8.30 in 2022, the stock has now surged to above $70. 

Affirm has successfully moved above the 23.6% retracement point at $48, and has just arrived at the 38.2% point. Most importantly, it has already moved above the crucial resistance level at $52.4, its highest level in December last year. Moving above that level invalidated the bearish double-top chart pattern. 

Affirm shares have also moved above the ascending trendline that connects the lowest swings since April 2023. It has also moved above the 50-week moving average, while the Relative Strength Index (RSI) and the MACD indicator have all pointed upwards.

Affirm shares have also retested the upper side of Andrew’s pitchfork tool. Therefore, the path of the least resistance for the stock is bullish, with the next point to watch being at $92.62, the 50% retracement point, which is about 30% above the current level. 

A break above that resistance level will lead to further gains to $122.40, the 61.8% retracement point. On the other hand, a drop below the key support at $60 will invalidate the bullish view.

Read more: Affirm stock price is soaring: will AFRM surge to $100 soon?

AFRM’s business is doing well

Affirm is a leading player in the buy now, pay later (BNPL), which is expected to have spectacular growth in the next decade. Data shows that the sector was estimated at $6.13 billion in 2022 and that it would grow by about 26% until 2030.

BNPL service providers are often seen as better alternatives to credit card companies because they are cost-efficient. Unlike credit card companies, BNPL players like Affirm don’t charge interest for most of their services.

Instead, the company pays for the purchase and then takes a commission from the seller. Users then pay the cash in four installments. 

Affirm has also introduced other interest-bearing products that affect customers seeking a longer timeframe to pay. 

Its annual reports suggest that Affirm’s business has done well in the past few years. Its annual revenue has jumped from $509 million in 2019 to over $2.3 billion in the last financial year. It has already made $2.54 billion in the trailing twelve months.

Affirm has also made progress reducing its losses. It had a net loss of over $985 million in 2022, followed by $517 million in 2023 and $446 million in the TTM.

The most recent financial results showed that Affirm’s gross merchandise volume (GMV) rose by 35% in the last quarter to $7.6 billion. Its active customers jumped to 19.5 million, while revenue jumped by 41% to $698 million. 

Analysts expect that Affirm’s business will continue doing well this year. The average estimate is that its revenue will grow by 36% in the current quarter to $806 million, bringing its annual figure to $3.1 billion. Its revenue for next year will grow to $3.77 billion.

Most importantly, Affirm has deals with some of the biggest retailers in the US like Amazon and Walmart. It has also inked partnership deals with Apple, Home Depot, and Chewy.

Therefore, with Affirm, we have a company with a solid market share in a growing industry, is narrowing its losses, and is seeing sustainable revenue growth. A combination of its strong technicals and fundamentals point to more gains ahead.

Read more: Here’s why Affirm stock could surge another 50%

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In a groundbreaking move that attracted the crypto community’s attention, incoming US president Donald Trump announced the first ever artificial intelligence and crypto ‘czar.’

Trump appointed venture capitalist and tech billionaire David Sacks through the social platform Truth Social.

Sacks will work on a legal framework so the Crypto industry has the clarity it has been asking for and can thrive in the US.

The announcement stirred the crypto community, attracting positive comments from industry leaders.

Furthermore, the news renewed optimism in the one-of-a-kind AI cryptocurrency project iDEGEN.

IDEGEN’s fast-selling presale has already raised over $2.76 million, signaling robust investor appetite behind the artificial intelligence experiment.

Industry reacts to the appointed crypto, AI czar

Sacks is a tech entrepreneur, podcaster, and venture capitalist known for developing successful firms, including Yammer and PayPal.

Also, he is a close ally to SpaceX billionaire Elon Musk and Vice President J.D. Vance.

Meanwhile, combining AI and crypto under a single policymaking umbrella intrigued crypto enthusiasts and pro-crypto legislators.

Many believe the two industries complement each other and would be crucial in advancing technology in the United States.

Circle CEO Jeremy Allaire trusts that Trump’s choice of David Sacks underscores the “acknowledgment that crypto and AI are the most strategic new tech areas for the United States and the world.”

Ripple’s leadership also supported David Sacks’ new role in spearheading the government’s efforts in AI and cryptocurrency.

Ripple CEO Brad Garlinghouse believes Sacks is part of the “dream team” that would propel technological innovations in the US.

Coinbase chief Brian Armstrong shared similar views, stating:

It’s incredible to think what is possible with sharp, pro-tech, pro-business people in government.

Amidst the ongoing developments, dreams of clear digital assets regulations are becoming a reality.

Donald Trump vowed to support cryptocurrencies during this campaign.

He testified to that by replacing SEC Chair Gary Gensler, who crippled the crypto industry with over-regulation.

AI experiment iDEGEN continued to flourish amid such sentiments.

Its unique approach – beginning with zero knowledge and relying on the X (Twitter) crypto community to learn – has created a buzz in the digital assets sector.

Why is iDEGEN different?

What differentiates iDEGEN is its far-reaching style of learning.

While other artificial intelligence projects come with pre-programmed restrictions and knowledge, iDEGEN learns everything through Crypto Twitter.

It posts what it has learned every hour, with each interaction shaping its development.

The connection of three top trends – meme culture, AI, and a community-driven approach – has made iDEGEN the most debated experiment within the cryptocurrency world.

iDEGEN will revolutionize AI and crypto, and the increased attention from the US president will set the project up for massive growth in the upcoming months and years.

These trends position native coin IDGN for impressive rallies in the coming sessions.

IDGN trades at $0.00476 per token and remains poised for explosive moves when it hits crypto exchanges on January 1, 2025.

You can visit here for more details on why IDGN will lead Solana meme coins in the next rally.

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