Lululemon Athletica inc. (NASDAQ: LULU) is having a great time in the market at the moment. Minutes ago, the stock started to spike in a big way as takeover chatter started to surface. Of course, our partners at Trade Ideas were the first to inform us of the gains. At the moment (10:46), LULU is trading at $52.70 per share after a gain of $0.77 per share (1.48%) thus far today.
LULU Gains On Takeover Chatter
As mentioned above, Lululemon Athletica is having a strong time in the market at the moment as the result of takeover chatter. This one is interesting; while the chatter is vague, the reaction and action leading up to it is not. Early this morning, there was a big call buyer on the stock, prompting savvy traders to take a look. Then, minutes ago, the takeover chatter started to surface on social media.
Now, it's important to remember that the takeover chatter is nothing more than a rumor. There's no mention of who may be taking the company over, nor at what price. In general, rumors like this in the market are false, and we see them all the time. In fact, over the past few months, we've seen several takeover rumors surrounding LULU. Nonetheless, as soon as the chatter started, LULU started to fly in the market.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on LULU. In particular, we're interested in learning whether or not there is any validity to the takeover rumors. While we don't believe that there is, considering the various rumors that have proven to be false surrounding the stock in the past, anything can happen in the market. We'll continue to follow the story closely and bring the news to you as it breaks!
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