Lululemon slumps on earnings. Bargain hunters beware.
At this point, the case for the stock can be summed up “in one line: It’s too early,” as Quo Vadis Capital President John Zolidis succinctly put it.
June 5, 2026
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At this point, the case for the stock can be summed up “in one line: It’s too early,” as Quo Vadis Capital President John Zolidis succinctly put it.
It’s an interesting contrast; a satellite and rocket company just filed for the largest-ever IPO in history and Walmart says customers are reducing the number of gallons of gas per fill-up at the pump.
“We believe investors are skeptical and reluctant to believe the turnaround is real, setting up further upside in the shares,” writes Quo Vadis Capital President John Zolidis.
Some truly immense amounts of money are about to be spent. Alphabet (aka Google) surprised investors last week with a 2026 capex (investment spending) plan of $175B-$185B. Meta (aka Facebook) is at $115B to $135B. Microsoft (aka Microsoft) is on track for $145B. Amazon, looking for one ring to rule them all, is targeting $200B.
Examining the factors behind 2025’s double-digit gains is instructive as a starting point for thinking about next year.
“In contrast to the situation at Walmart, incoming CEO Michael Fiddelke is tasked with a turnaround,” said Quo Vadis Capital president and founder John Zolidis. “We assume he has new ideas to rebuild Target’s brand equity, refresh the merchandise and reignite sales growth, but these have to be articulated.”
“Partnering in China absolves management of some operational complexity and geopolitical exposure while freeing resources to focus on a nascent turn in the North American business,” said John Zolidis, president and founder of Quo Vadis Capital.
The average restaurant stock has dropped 13% since the start of the third quarter. In contrast, the S&P 500 is up 8% over the same period. This is a big spread. Why are restaurant stocks being sold off?
“They need to have exciting new menu items that drive incremental engagement from their customers,” Zolidis said. “They have to do that in an environment where the consumer is being more careful about where they’re spending their money, so it’s a big challenge.”
Markets are trading at new highs despite the disruptive impact of ongoing trade negotiations. Or is it because of them? In my experience, robust markets have correlated with periods of uncertainty, shock and disruption.