Broadcom Slides; Lululemon Jumps; UBS Hits 17-Year High

On this episode of Stock Movers:
- Shares of Broadcom (AVGO) slide in premarket trading after its sales outlook for the red-hot market failed to meet investors’ lofty expectations. The shares fell about 5% in premarket trading on Friday, following unsettling commentary from Chief Executive Officer Hock Tan on a conference call with analysts. He said the company has a backlog of $73 billion in AI product orders that will be shipped over the next six quarters — a number that disappointed some investors. But Tan sought to clarify that the figure was a “minimum.”
- Shares of Lululemon Athletica (LULU) jumped ahead of the US market open after the athleisure purveyor boosted its full-year earnings-per-share guidance, called early holiday performance encouraging, and announced a $1 billion increase to its stock buyback program. Lululemon’s fiscal third-quarter report had several positive nuggets for investors after a tough year. Profit and comparable sales beat analyst expectations in the quarter, driven by growth in international markets. Revenue in the US slipped 3% on a constant-currency basis. The company is also searching for a replacement for CEO Calvin McDonald, who will depart the top post at the end of January.
- Swiss-listed shares of UBS Group (UBSG SW) hit their highest level since February 2008 after a group of influential Swiss lawmakers proposed watering down the capital demands that the country wants to impose on the lender. The senior legislators presented recommendations that would allow UBS to use a kind of junior debt known as AT1 bonds instead of equity to meet some of the fresh capital requirements envisioned by the Swiss government. They also floated the idea to continue letting it use at least some of its software and tax credits to count toward the capital demands, though they also included a rule that would place a cap on investment banking growth.

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