Chapter 1: What is the main topic discussed in this episode?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Thursday, December 18th. I'm Julie Morgan. Elliott Investment Management is reportedly now one of Lululemon's largest shareholders. Micron is surging, and a new suitor has reportedly entered the mix for Warner Bros. Discovery.
Elliott Investment Management has taken a stake in Lululemon Athletica. The activist investor has bagged a stake exceeding $1 billion, positioning it as one of the company's largest shareholders. The Wall Street Journal reported citing people familiar with the matter, that Elliott is lining up potential CEO candidates.
The report said Elliott is pushing for leadership changes, including proposing Jane Nielsen, a former CFO and COO at Ralph Lauren, as a potential new CEO. Nielsen said in a statement to the journal that she would welcome the chance to discuss this opportunity with the Lululemon board.
Chapter 2: What significant stake has Elliott Investment Management taken in Lululemon?
This move follows the current CEO's planned exit in January of next year. Amid criticism over product execution, market share losses to rivals like Alo Yoga and a 60% drop in share price from its peak. Lululemon's market value stands around $25 billion. Pre-market Lulu is up more than 5%. Micron technology is up 10 percent in pre-market action.
Shares rose after the memory maker reported fiscal first quarter results and guidance that were well above Wall Street's forecast. Looking ahead to the second quarter, Micron said it expects to earn between $8.22 and $8.62 per share on an adjusted basis, while revenue is expected to be between $18.3 and $19.1 billion.
Analysts had expected the company to earn an adjusted $4.78 per share on $14.3 billion in revenue. The company also forecast a $100 billion HBM market by 2028, as supply tightness persists through 2026. The founder of Standard General has been in talks over potentially buying or investing in Warner Bros. Discovery's television networks.
The Financial Times reported citing people briefed on the matter that Sue Kim has been approached by at least one major Warner Bros. Discovery shareholder to acquire all or part of the cable TV assets, including CNN. The report noted that the shareholder who approached the hedge fund founder could not be immediately identified. Warner Bros.
has received competing offers from Netflix and Paramount Skydance. Warner Bros. board told its shareholders to reject the hostile bid from Paramount and maintain that Netflix's offer is superior. Netflix's bid is for Warner Bros. studio and streaming business, while Paramount wants to buy all of WBD, including CNN. Now for a look at a few other articles that are trending on Seeking Alpha.
The U.S. approves $11.1 billion arms sales to Taiwan. The House passes a Republican health care bill without extending ACA subsidies. And Instacart falls on a report of an FTC probe over an AI pricing tool. And on Wall Street at this early hour, Dow, S&P and Nasdaq futures are in the green. Crude oil is up 0.2% at $56 a barrel. Bitcoin is up 1.3% at $87,000. Gold is down 0.3% at $43.24.
The FTSE 100 is up 0.2% and the DAX is up 0.5%.
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Chapter 3: What leadership changes is Elliott proposing for Lululemon?
Vision Marine Technologies is on our list of the biggest movers of the day pre-market. VMAR is down 32% after the company announced the pricing of a public offering aiming for gross proceeds of $9.6 million. And on today's economic calendar, at 8.30 a.m. CPI and at 10 a.m. leading indicators. That's it for today's Wall Street Breakfast. Thanks for listening.
To take full advantage of Seeking Alpha, join the highest quality community of real investors discussing stocks and ETFs at seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.