Thursday’s Headlines: Nike Clashes With Lululemon

Thursday’s Headlines: Nike Clashes With Lululemon

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Coca-Cola (KO) +0.8%

Brown-Forman (BF.B) +0.6%

Berkshire Hathaway (BRK.B) +0.5%

Markel Corp (MKL) -0.3%

Dividend Aristocrats (NOBL) -0.3%

Moving Down ⬇️

Roku Inc. (ROKU) -11.7%

Lovesac (LOVE) -10.7%

Coupa Software (COUP) -9.9%

Upstart Holdings (UPST) -9.3%

MercadoLibre (MELI) -9.0%

1. Nike (NKE) filed a lawsuit against athletic apparel rival Lululemon (LULU) yesterday, accusing the latter of patent infringement. The case revolves around Lululemon’s Mirror fitness device, a wall-mounted reflective screen that guides people through various workouts. Nike claims that longstanding patents from the 1980s relating to devices for monitoring a runner’s performance are being infringed upon. Lululemon was first made aware of these alleged transgressions in early November by the Oregon-based athletic giant but was quick to dismiss the claims. A spokesperson for the company stated that “the patents in question are overly broad and invalid.” This marks the second major legal battle faced by Lululemon at the moment, as it is currently mired in another patent lawsuit with Peloton (PTON). Read more here.

2. Google (GOOG) has been hit with a record fine of $169 million by France’s data privacy watchdog, the CNIL. This comes following a slew of anti-trust investigations being opened against the company during 2021. The fine is related to Google’s use of cookies across its sites. According to the CNIL, the sites “do not allow to refuse cookies as easily as it is to accept them. Google is expected to comply with the fine and to provide users with simpler tools to refuse cookies within three months or face further penalties This news comes on the same day that German anti-trust authorities have stepped up their investigations into the company following the discovery that Google meets the criteria for “special abuse control.” Read more here.

3. Roku (ROKU) saw its share price drop by almost 12% yesterday, signaling its lowest price since October 2020. The connected-tv company plummeted following a poor outlook in a report from analysts at Atlantic Equities. The report states that Roku could be nearing saturation for its U.S. audience. This, combined with stiff competition from companies such as Amazon (AMZN) and Google, could leave Roku struggling to grow in a significant way into the future. The company will be hoping its current plans to expand internationally will pay rich dividends, as it is currently down almost 60% since reaching an all-time high in July of last year. Read more here.

Pádraig BolgerPádraig Bolger