10 Stocks Took a Shocking Nosedive

1. lululemon athletica inc. (NASDAQ:LULU)

Lululemon fell by 19.8 percent on Friday to finish at $265.27 apiece following a disappointing earnings performance and outlook guidance for the rest of the year.

In its financial statement, Lululemon Athletica Inc. (NASDAQ:LULU) said net income in the first quarter of the year dipped by 2 percent to $314 million from $321 million in the same period last year.

Net revenues, on the other hand, grew by 7 percent to $2.37 billion from $2.2 billion year-on-year.

For the second quarter of the year, Lululemon Athletica Inc. (NASDAQ:LULU) expects net revenue to be in the range of $2.535 billion to $2.56 billion, representing growth of 7 percent to 8 percent.

For the full-year period, it said targets net revenue to be in the range of $11.15 billion to $11.3 billion, representing growth of 5 to 7 percent.

Following the guidance, JPMorgan and UBS both reduced their price targets for the company to $303 and $290, respectively, from $389 and $330 previously.

While we acknowledge the potential of LULU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LULU and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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