Week's Winners and Losers: Apple Shines, Lulu Loses Luster
There were plenty of winners and losers this week, with the world's largest consumer electronics company introducing plenty of shiny new gadgetry and a once high-flying yoga apparel retailer stumbling in its latest quarter.
Apple (AAPL) -- Winner
Wall Street wasn't impressed with Apple's iPhone 6s event Wednesday. The stock actually fell on the day. However, Apple had one of its more productive media events in some time. It obviously introduced the iPhone 6s and iPhone 6s Plus with an upgraded processor, camera and display. It also introduced an updated Apple TV, the iPad pro and nifty $99 stylus to go with the new high-end tablet.
Apple also launched a clever in-house iPhone upgrade program, taking what many wireless carriers are doing but making it its own. It was a great day for Apple to shine, even if the stock chart says otherwise.
Lululemon Athletica (LULU) -- Loser
If quarterly reports were yoga positions, the latest financials out of Lululemon would have to be a downward-facing dog. Shares of the high-end yoga apparel retailer took a hit Thursday after it posted a rough report.
Sales were weak, margins contracted, and inventory levels ballooned. The spike in inventory suggests that Lululemon is going to have to do some discounting to get its merchandise stock down to a reasonable level. The chain also lowered its fiscal guidance.
Stephen Colbert -- Winner
David Letterman's replacement at CBS (CBS) is off to a strong start. Stephen Colbert took over Tuesday as host of "Late Show," drawing 6.6 million viewers. That may not seem like a lot of homes tuning in, but keep in mind that it was more than twice the viewership of any rival's late-night audience. It was also three times what Letterman himself drew a year earlier and a lot more than Colbert was drawing at Comedy Central.
The real challenge here is to see if he can keep it going. That's no easy task in the competitive late-night market, but at least Colbert and CBS are kicking things off the right way.
United Continental (UAL) -- Loser
There's turbulence at a major air carrier. United Continental CEO Jeff Smisek resigned this week. Given the federal probe surrounding the airline's dealings with the Port Authority of New York and New Jersey, it isn't a surprise.
Moving on could be seen as a smart move, but the abrupt departure leaves investors with even more questions and doubts about the situation.
Keurig Green Mountain (GMCR) -- Winner
Sales of Keurig's single-cup brewers may have peaked -- judging by the surprising dip in sales in its most recent quarter -- so Keurig Green Mountain is turning to a new brew. Keurig is teaming up with Campbell Soup (CPB) to roll out soups that come in the form of K-Cups, just like Keurig coffee, tea and hot cocoa. The brewed broth is accompanied with packets that are stirred in containing noodles, spices and other garnishes.
The partnership is old news: It was originally announced two years ago. However, the new Campbell soups will improve the value proposition of owning a Keurig. It's not just about morning beverages anymore, justifying the initial investment for the brewer.
Motley Fool contributor Rick Munarriz owns shares of Keurig Green Mountain. The Motley Fool owns and recommends Apple and Lululemon Athletica. The Motley Fool recommends Keurig Green Mountain. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool's one great stock to buy for 2015 and beyond.