Despite the Nasdaq 100’s impressive nearly 20% year-to-date gain, several components have dramatically underperformed, creating potential deep-value opportunities for discerning investors. Two notable laggards—Lululemon and Adobe—present compelling cases for bottom-fishing despite facing significant headwinds, trading at valuations that may already reflect worst-case scenarios in an otherwise expensive market.
about Nasdaq 100 Bargains: 2 Undervalued Stocks to Watch
LULU
Lululemon Cuts Outlook on Trade Policy, Shares Tumble 20%
Lululemon faced a severe market reaction with shares dropping 20% after the company revised its financial outlook downward due to weakening consumer demand and the Trump administration’s trade policy changes. The elimination of the de minimis exemption, which previously allowed duty-free shipments under $800 from Canada, will cost the company approximately $240 million. The Vancouver-based retailer now projects third-quarter sales between $2.47-2.5 billion, below Wall Street expectations, and has reduced both revenue and earnings per share guidance for the full year. This continues a challenging period that has already wiped out $22 billion in market value, with Bloomberg Intelligence analyst Poonam Goyal providing expert commentary on the developments.
about Lululemon Cuts Outlook on Trade Policy, Shares Tumble 20%Key Market Updates: Moderna Sales Cut and Retailer Guidance Adjustments
Moderna has reduced its 2025 sales forecast by about $1 billion, now expecting $1.5 billion to $2.5 billion, leading to a 17% drop in its shares. Meanwhile, IAC is spinning off Angi and will operate without a new CEO, while several retailers, including Lululemon and American Eagle, raised holiday quarter guidance but faced stock declines amid investor skepticism. Additionally, the Justice Department released a report from special counsel Jack Smith regarding President-elect Trump’s actions to overturn the 2020 election, stating a jury would have convicted him if not for his election.
about Key Market Updates: Moderna Sales Cut and Retailer Guidance AdjustmentsBlock aims for S&P 500 inclusion as first Bitcoin treasury firm
Block, founded by Jack Dorsey, is on track to become the first Bitcoin treasury firm to enter the S&P 500 after meeting the necessary criteria, including a market cap exceeding $18 billion and positive earnings. The decision for inclusion ultimately lies with the S&P Index Committee, which considers various qualitative factors. Currently, Block holds 8,211 BTC valued at over $770 million, reinforcing its commitment to Bitcoin as central to its mission.
about Block aims for S&P 500 inclusion as first Bitcoin treasury firm