Access Granted, Downward Dog Disaster and Egos Collide: Weekly Recap

Featured Article this week:

• Historic Asset Reopened: Military Metals secured an Access Agreement at Nova Scotia’s West Gore site—once Canada’s top antimony producer during WWI—to launch modern exploration, including drone surveys and drilling.

  Critical Mineral Upside: The site hosts high-grade antimony and gold in quartz fissure veins, with mineralogical complexity and open zones at depth—offering strong potential for new discoveries in a tight global antimony market.

  Strategic Timing: With rising demand for antimony in defense, semiconductors, and energy storage—and 80% of supply from China/Russia—Military Metals is advancing a domestic supply source aligned with Canadian and U.S. critical mineral priorities.

Lululemon Stumbles Hard — Wall Street Says “Buy”

Shares plunged nearly 20% after weak guidance overshadowed a solid Q1 beat. Analysts slashed price targets but remain bullish on long-term growth, especially in China.

• Outlook Sinks the Stock: LULU shares plunged -19.9% to $264.88 after the company cut full-year EPS guidance by 2.5% to $14.58–$14.78 and issued soft Q2 guidance ($2.85–$2.90 vs. $3.28 est.), citing 110bps in gross margin compression tied to tariffs and markdown pressure.

• Analysts Remain Cautiously Bullish: JPMorgan, BofA, Truist, and Needham all maintained Buy/Overweight ratings but slashed price targets across the board:

  • JPM: $389 → $303

  • BofA: $400 → $370

  • Needham: $366 → $317

  • Truist: $297 → $290
    Concerns include sluggish U.S. sales, slowing international comps, and China growth deceleration, though management still expects +25%–30% YoY growth in China.

• Q1 Results Beat — But Ignored: LULU posted Q1 EPS of $2.60 (above guidance and consensus), with 7.3% YoY revenue growth and improving margins. However, macro headwinds and muted foot traffic overshadowed these results, triggering a sharp selloff.

Market Snapshot This Week:

• Tech Rallies on AI Optimism:

  • Nvidia (NVDA +5.17%), Micron (MU +15.80%), and other semiconductors surged following a strong AI demand outlook and Micron’s bullish earnings driven by high-bandwidth memory chips for AI servers.

  • Microsoft (+2.27%) and Oracle (+4.77%) also rallied on enterprise AI deployment updates.

  • Meta (+7.36%) jumped after announcing broader monetization of its AI tools and infrastructure.

• Tesla Drags Consumer Cyclical Sector:

  • Tesla (TSLA -13.43%) tanked after reports of slowing global EV deliveries, price cuts in China, and CEO Elon Musk’s comments hinting at delays in next-gen vehicle production.

  • Broader consumer cyclical names like Nike (+2.85%) and Amazon (+3.68%) rose on resilient U.S. spending and AI-driven logistics gains at AMZN.

• Healthcare & Financials Mixed on Guidance and Rates:

  • Eli Lilly (+4.00%) rallied on positive obesity drug trial results.

  • Berkshire Hathaway (BRK-B -2.26%) fell as investors rotated out of defensive holdings and priced in lower future insurance margins.

  • CME Group (-5.16%) declined sharply after missing revenue forecasts and issuing soft guidance tied to reduced futures volume expectations.

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