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Luke Kawa9/2/25

CoreWeave tumbles as top shareholder Magnetar dials down position, puts on huge collar trade

CoreWeave is getting trounced along with most other high-beta growth companies in early trading on Tuesday, as its top shareholder as well as some of its executives continued to take profits in the name they’re finally allowed to sell.

Last Thursday, Magnetar Financial, its subsidiaries, and insiders sold $94.4 million (or 915,339 shares) of the AI cloud computing company. Magnetar had previously unloaded about 1.5 million shares earlier in August after the post-IPO lockup period expired.

The firm also entered into a series of derivatives transactions last week designed to protect the value of its CoreWeave position by:

Selling 600,000 call options that expire on March 20, 2026, with a strike price of $175 and buying just as many put options with the same expiry and a strike price of $70 on Thursday;
Selling 801,000 call options that expire on March 20, 2026, with a strike price of $160 and buying just as many put options with the same expiry and a strike price of $70 on Wednesday.

This is known as a “collar” trade. Magnetar spent about 22% more on the put options than it generated in premiums by selling the calls.

Ahead of the lockup expiry, Bank of America analyst Brad Sills warned of a “near term overhang” for the stock because of the potential for this selling to occur, and indeed it has.

Elsewhere, filings show that CoreWeave CEO Michael Intrator sold about $7.8 million (or 82,455 shares) on Wednesday, while General Counsel and Corporate Secretary Kristen McVeety exercised a stock option and also sold nearly $30 million (or 311,796 shares), all of her direct stake in the company. She maintains an indirect position of 95,000 shares through a grantor-retained annuity trust.

Note: These insider trades were part of a prescheduled 10(b)5-1 program, and as such were not discretionary in nature.

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Helena Cheng10h

Lululemon’s stretch getting tested: Stock plunges after after outlook is cut

Lululemon shares are down double digits in premarket trading after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.

The company now expects fiscal 2026 revenue to be flat to down 1%, compared with its prior forecast for 2% to 4% growth. Guidance for full-year diluted earnings per share was dragged down to a range of $10.95 to $11.15, below the company’s previous guidance of $12.10 to $12.30 and well below Wall Street’s estimate of $13.26.

Key numbers for Q1:

EPS of $1.69 vs. the $1.68 expected.
Revenue of $2.47 billion vs. the $2.43 billion expected.

The modest top-line beat masked a widening divergence between Lululemon’s geographic markets. While international revenue rose 22% overall with a 30% increase in Mainland China, the bigger problem remains North America, where revenue fell 5%.

Interim co-CEO and CFO Meghan Frank acknowledged during the earnings call that recent product rollouts underperformed. A highly anticipated yoga campaign failed to generate its expected “halo effect” across broader product lines.

Profitability metrics took a major hit, with gross margins contracting by 410 basis points to 54.2% due to mounting tariff costs and promotional markdowns. Operating income consequently fell 37% year over year to $276.9 million.

“We experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top-line performance,” Frank said during the earnings call. “And second, not all of our product launches have met our expectations. While we have had several successful launches so far this year, we have seen others as we start Q2 not generate the anticipated guest response.”

Lululemon’s valuation has already been steadily compressing for years. While it was once one of retail’s richly valued stocks, investors have been questioning whether the company can return to the double-digit growth era.

The results also arrive during a leadership transition. Lululemon announced back in April that former Nike executive Heidi O’Neill is set to take over as CEO in September, with investors looking to her to revive growth in North America and restore the brand’s growth.

As Lululemon faces both macroeconomic pressure and brand-specific challenges, its stock has dropped around 40% year to date.

markets

US job growth skyrocketed in May, blasting past expectations

The US economy added 172,000 jobs in the month of May, the Bureau of Labor Statistics reported Friday, sending 10-year Treasury yields higher.

The strong May job market surprised economists. Experts had predicted only 85,000 new jobs — just half the reported number. The unemployment rate held steady at 4.3%, as expected.

The job growth story is a hopeful spot for the economy as consumers continue to feel inflationary pressure from the Iran war.

Job gains were buoyed by the leisure and hospitality sector, which added 70,000 jobs, as well as local government, healthcare, and education.

Both the March and April jobs reports were revised upward, making them collectively 93,000 higher than previously reported.

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