Jim Cramer, the host of CNBC’s ‘Mad Money,’ has expressed optimism about Lululemon Athletica Inc (LULU) and Dell Technologies Inc (DELL) in a recent post on X. Cramer believes that Lululemon may have hit rock bottom, stating, “Thinking Lulu may have bottomed and I am loving Dell here.” His comments come as investors closely monitor market trends and company performances.
Lululemon recently reported its second-quarter financial results, revealing a revenue miss but an earnings beat. The company’s revenue reached $2.371 billion, falling short of the consensus estimate of $2.409 billion. However, earnings per share came in at $3.15, exceeding the expected $2.94. Total revenue saw a 7% year-over-year increase, with comparable sales rising by 2%. International revenue surged by 29% year-over-year, while America’s net revenue grew by 1%.
Meanwhile, Dell also released its second-quarter earnings, reporting a revenue of $25.03 billion, exceeding the consensus estimate of $24.14 billion. The tech giant’s adjusted earnings per share were $1.89, surpassing analyst estimates of $1.71. Total revenue increased by 9% year-over-year, with its Infrastructure Solutions Group seeing a 38% rise in revenue to $11.6 billion. However, the Client Solutions Group’s revenue dipped by 4% year-over-year to $12.4 billion.
The broader market context also contributes to Cramer’s optimism. On the same day, Wall Street experienced a rally, with the Dow Jones reaching record highs as the U.S. economy grew by 3% in the second quarter, surpassing earlier estimates. This positive economic data fueled a risk-on sentiment among traders, despite some mixed earnings reports from major tech companies like NVIDIA Corp.
Lululemon closed at $259.01 on Thursday, marking a slight increase of 0.07% for the day. After hours, the stock surged by 4.24%. However, the stock has declined by 48.75% year to date. Meanwhile, Dell finished the day at $110.74, down 0.74%. In after-hours trading, Dell’s stock surged 3.30%. Year to date, Dell’s shares have risen by 48.07%.
Cramer’s optimistic outlook on Lululemon and Dell comes amidst a backdrop of positive economic data and a broader market rally. While both companies reported mixed earnings, Cramer believes that Lululemon may have bottomed and Dell is performing strongly. Investors will continue to monitor these companies closely as they navigate the evolving market conditions.
