Welcome to Markets Desk, here's what's moving this Friday.
Lululemon is the story in retail today, with shares cratering eighteen percent after the athleisure giant posted weak second quarter results and slashed forward guidance. Americas sales are declining, China growth is tepid at best, and the turnaround narrative that had been propping up the valuation is visibly fraying. Analysts are reassessing.
Shifting to Berkshire Hathaway, where Greg Abel is drawing a clear line on the company's exposure to hyperscaler clients. Abel said this week that serving the big cloud and AI infrastructure players cannot come at the expense of Berkshire's existing customer base, meaning no rate increases and a demonstrable net benefit to other customers. It's a disciplined capital allocation signal from the new Buffett successor.
And on Take-Two Interactive, shares slipped despite what by most accounts looks like genuine consumer enthusiasm ahead of the November nineteenth launch of GTA Six. The drag isn't demand, it's hardware. Sony and Microsoft face real console supply and pricing risks that could cap the addressable market at launch, and the street is starting to price that uncertainty in even as analysts hold their buy ratings.
That's the tape. Markets Desk, signing off the floor.
