The athleisure market is heating up as the consumers prefer comfort when working from home. The demand for leggings, stretchy bottoms, and sweatshirts has increased because they have become a new modern fashion trend.
The shift in consumer demand and the increasing trend of activewear for casual daily use increase Lululemon’s brand awareness. The company reported 157% in online sales and beat the earnings estimate by 35% in the last quarter. According to the CNBC report, the athleisure market expects to reach $105 billion in the US in 2020 .
The yoga brand reported stronger online sales during the pandemic as the company had prepared the digital expansion since 2019. Based on the interview with the company CEO Calvin McDonald in April 2019, the athleisure company focused on men, digital, and international as part of its strategy and the key revenue in the future .
Lululemon has a strong competitive advantage and started eroding the big brands’ market share, including Nike, Adidas, and Under Armour. The shares are showing a positive momentum since last week towards the earnings announcement day on December 10. The market expects that the strong Black Friday sales will boost the earnings for the quarter.
Broadcom is a technology company that design and manufacture semiconductor and infrastructure for software solutions. The main market segments are networking, data center, wireless, broadband, and storage.
Broadcom’s quarterly financial performance will benefit from the increasing trend of work from home during the pandemic. Adopting cloud-based infrastructure for the virtual workplace, data management, and online shopping will significantly contribute to revenue growth.
The rise of the digital economy will boost semiconductor products that power mobile phones, computers, and cloud servers. Broadband and wireless infrastructure will allow people to work from home, attending lectures remotely, and order food online.
The momentum signal is powerful, leading to the earnings announcement on December 10. The stock has been steadily going up since December 3 as the market expects better than anticipated earning.
Oracle is a global technology company that provides cloud infrastructure and services for the enterprise. The cloud company has been powering a popular work from home video conference application Zoom for several years.
The company is the key player in the cloud business behind Amazon Web Services, Microsoft Azure, and Google Cloud. However, Snowflake will become Oracle’s main competitor after coming with the highest gain for software IPO ever. Ironically, the two founders worked at Oracle for many years.
TikTok will be the biggest deal ever for Oracle to re-brand itself as the front-runner in the cloud business. The transaction will give Oracle and Walmart a 20% stake in TikTok Global. TikTok has over 100 million users in the US.
The shares of Oracle have been flat. There is no significant momentum signal leading to the earnings day. There is no indication of strong market expectation for the earnings this quarter.