The AlwaysOn X Fund portfolio dropped 0.7% for the week, the NASDAQ advanced 0.3%, and the S&P 500 was up 0.9%. Year to date, the AO X Fund is up 5.1%, the NASDAQ is up 3.8%, and the S&P 500 is up 4.2%.
Sportswear leader Lululemon said it expects to report earnings on the upper range of the street’s expectations, expecting revenue to be up ~29% and EPS to be ~+45%. The concerning news was that LULU expects same store sales to be in the high single digits, which would be significantly below last quarter’s +26% growth. We are a bit more cautious given LULU’s high valuation and reduced our position by 2% to a 3.8% position. For the week, LULU declined 5.7%.
Herbalife raised its Q4 guidance, expecting to report +20% revenue growth. The stock continued to surge, up 8.7% for the week.
We are now increasing our Apple position to 4% as we believe the 10x forward P/E is attractive. Apple and Google are the first to report Q4 results next week. For the week, AAPL declined -3.9%, and GOOG dropped 4.8%.
Michael Moe is an AlwaysOn contributing editor and a former co-founder of ThinkEquity.