Closing Bell: Verizon Rallies on Earnings, Opendoor Skyrockets, Lululemon Slumps

On this episode of Stock Movers:
Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec.

- Verizon (VZ) shares rallied after it posted second-quarter revenue that surpassed analysts’ estimates and raised its profit outlook, buoyed by wireless price increases and recent tax legislation. Operating revenue was $34.5 billion, up 5.2% from a year earlier, The New York-based carrier said in a statement. Wall Street had been expecting $33.7 billion, on average. Wireless service revenue, which excludes device purchases and upgrades, was $20.9 billion, in line with analysts’ projections. The strong performance, as well as “favorable tax reform,” led Verizon to boost some full-year guidance metrics, including adjusted earnings before interest, tax, depreciation and amortization and free cash flow. CEO Hans Vestberg said Verizon has “momentum and a clear path forward.”

- Opendoor (OPEN) shares were halted for volatility during trading today, jumping as much as 121%, extending its gravity-defying rally from last week, as investors continued to pile into the stock that has found a sudden fandom among retail traders and social-media platforms. The stock’s triple-digit surge sent shares soaring to $4.97, well-above the $1 level it was bouncing around for the last few months. While shares in the online platform for buying and selling US real estate since pared their rally — closing around 43% higher — it’s still its sixth straight day of gains. Trading was briefly halted in the afternoon because of volatility. Opendoor has been the subject of chatter among retail traders on social media in recent days after Eric Jackson, founder of Toronto-based hedge fund EMJ Capital made a series of posts on social media platform X encouraging buying. It was listed as the topmost actively traded stock on Stocktwits Monday afternoon, and was being heavily cited by posters on Reddit’s WallStreetBets thread.

- Lululemon (LULU) shares slipped today as the athleisure brand continues to suffer from slowing sales. Lululemon’s core black leggings, which are vital products that rarely are discounted, are piling up at outlet stores, according to Randal Konik, an analyst at Jefferies. That’s an alarming issue for Lululemon, he added, showing erosion in core demand for the brand’s clothes. “We’ve witnessed signals of a brand in decline and see risks to earnings ahead,” Konik said in a note to clients on Thursday. The analyst, a long-time critic of the company’s strategy, has had an underperform rating on Lululemon’s stock since 2022.

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