Monday's Headlines: Peloton Sues Lululemon
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Zoom Communications (ZM) +5.7%
2U (TWOU) +4.0%
Nautilus (NLS) +3.8%
Teladoc (TDOC) +3.4%
Moving Down ⬇️
Huazhu Hotels Group (HTHT) -10.6%
Booking Holdings (BKNG) -7.2%
IMAX (IMAX) -6.9%
LoveSac (LOVE) -6.8%
Planet Fitness (PLNT) -6.6%
1. Peloton (PTON) is suing the fashion apparel brand, Lululemon (LULU), in a bid to achieve clarity on design patent disputes. Peloton previously listed Lululemon’s products on its website for sale, but it is now winding down the sale of external brands in a bid to boost Peloton’s newly released product line, including tank tops, leggings, sports bras, joggers, among others. Lululemon’s lawyers have stated Peloton will be sued if it does not cease selling the products it believes to be infringing, but Peloton has decided to fire back and is now pursuing a court ruling to protect its own intellectual property rights. From an outside perspective, it looks as if Lululemon’s claims will fall short based on clear logos and trademarks, unless there are design-specific infringements in relation to specific products. Read the full story here.
2. Peloton along with other names like Zoom (ZM) and the stay-at-home story stocks, received a boost late last week on the news of a new COVID variant. While the news won’t help economies overall, it has given some of these names a much-needed bounce-back after a sour 2021 thus far for investors. This is on the back of government-mandated lockdowns already taking place in Europe, with some member states now taking extra precautions when it comes to people crossing their borders from southern African countries. Travel stocks including Airbnb (ABNB) took a hit late last week on the news, but pharmaceutical companies have been straight to work, researching methods to tackle the new Omicron strain. Read more here.
3. A company-wide email from Tesla (TSLA) CEO Elon Musk to staff has requested a focus on the minimization of costs associated with the delivery of vehicles. This comes on the back of increased distribution and transportation costs, considering many of Tesla’s cars are currently being shipped from China until mass-scale production is achievable in its Texas and European locations. The intention of the email has been to encourage a “steadier and more efficient pace of deliveries” rather than staff over-working themselves and leading to burn-out for future weeks. Delays have already occurred pushing back the wait-time for Tesla customers. But, the email suggests the confidence Tesla has in the demand for its vehicles, even in the face of a flurry of new entrants to the electric vehicle (EV) market. Read the full story and email here.
None of the stocks on our shortlist are reporting results today.
Get this week’s full earnings calendar here.