Lululemon, Braze, and 3 Stocks to Watch Heading Into Friday

As we approach the end of the week, the market is buzzing with anticipation over the latest earnings reports and economic indicators. Two standout companies, Lululemon and Braze, have recently released their financial results, providing valuable insights into their performance and future prospects. Additionally, three other stocks are catching the eye of investors, making them must-watch heading into Friday. Let's dive in and analyze the key takeaways from these companies and explore the broader market implications.

Lululemon: A Strong Quarter with Cautious Outlook

Lululemon's fourth-quarter earnings report was a mixed bag of good news and cautionary notes. The athletic wear company reported a 13% increase in revenue to $3.6 billion, exceeding Wall Street's expectations of $3.57 billion. Diluted earnings per share (EPS) also came in at $6.14, surpassing the forecasted $5.85. For the full year, Lululemon's revenue increased by 10% to $10.6 billion, and diluted EPS was $14.64, compared to the expected $12.20.



The company's strong performance was driven by a 38% increase in international net revenue and the opening of 18 new stores. However, the stock fell more than 10% in extended trading due to concerns about economic and inflation issues. CEO Calvin McDonald mentioned that consumers are spending less due to these concerns, which could impact future sales. The company's guidance for 2025 was also lower than analyst expectations, with net revenue expected to grow by 5% to 7% and diluted EPS in the range of $14.95 to $15.15.

Braze: A Quarter of Profitability and Growth

Braze, the leading customer engagement platform, reported a 22.5% year-over-year increase in revenue to $160.4 million for the fourth quarter of fiscal 2025. The company achieved its third consecutive quarter of non-GAAP net income profitability, with non-GAAP operating income of $7.9 million. Braze's stock surged 9.67% in after-hours trading following the earnings announcement, closing at $40.25.



The company's strong performance was driven by new customers, upsells, and renewals. Braze's strategic focus on enhancing its product offerings and expanding its customer base contributed to its success. The acquisition of OfferFit, a sophisticated AI decisioning company, is expected to enhance revenue growth by approximately 2 percentage points. For the first quarter of fiscal 2026, Braze expects revenue between $158 million and $159 million, representing a 17% growth. For the full year FY2026, the company anticipates revenue between $686 million and $691 million, a 16% increase.

3 Stocks to Watch Heading Into Friday

1. Meta Platforms (META): Meta Platforms has been a hot topic among investors, with its stock price fluctuating between $29.18 and $48.33 over the past year. The company's focus on AI and virtual reality is positioning it for future growth, but investors should keep an eye on its earnings report and any updates on its metaverse initiatives.

2. CyberArk Software (CYBR): CyberArk Software is a leader in the cybersecurity space, and its stock has shown resilience in the face of market volatility. The company's strong financial performance and strategic acquisitions make it a compelling investment opportunity. Investors should monitor its earnings report and any updates on its product offerings and market expansion.

3. Spotify Technology (SPOT): Spotify Technology has been a favorite among retail investors, with its stock price surging in recent months. The company's focus on podcasting and music streaming is driving its growth, but investors should be aware of the competitive landscape and any potential regulatory challenges. Spotify's earnings report and user growth metrics will be key factors to watch.

Market Implications and Investor Sentiment

The strong financial performance of Lululemon and Braze, along with the positive outlook for Meta Platforms, CyberArk Software, and Spotify Technology, highlights the resilience and growth potential of the market. However, investors should remain cautious about macroeconomic concerns and the potential impact on consumer spending and corporate earnings.

In conclusion, Lululemon and Braze have shown strong financial performance and a commitment to innovation and market expansion. Meta Platforms, CyberArk Software, and Spotify Technology are also worth watching heading into Friday, as they offer compelling investment opportunities in the tech and cybersecurity sectors. Investors should stay informed about the latest market trends and economic indicators to make informed decisions and navigate the ever-changing landscape of the stock market.