Finimize - 🤫 Are Chinese stocks... cheap?

Hi Reader, here's what you need to know for September 10th in 2:58 minutes.

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Today's big stories

Athleisure brand Lululemon announced better-than-expected earnings
China's recent crackdown efforts might make now a great time to bag yourself a bargain – Read Now
The ECB announced it’ll be slowing down its bond-buying program

Endorphin Rush

What’s Going On Here?

Lululemon reported better-than-expected quarterly earnings late on Wednesday, as the high-end athleisure brand works its ath off to get back into pre-pandemic shape.

What Does This Mean?

Lululemon’s ecommerce business had a great run last quarter, though that’s hardly a surprise given all the online shopping habits people have picked up over the last year. What’s really got people talking is the return of bricks-and-mortar shopping, with sales at Lululemon’s stores almost back to levels not seen since the beforetimes. Between the on and the offline, the company’s revenue climbed 61% compared to the same time last year (tweet this). And all those hard yards seem to be paying off: Lululemon’s on track to beat its 2023 revenue target by the end of this year.

Why Should I Care?

For markets: Don’t slow down.
Investors sent Lululemon's shares up 13% following the update, but they might not want to put all their money into lycra just yet: the company has been dealing with supply delays since the pandemic’s last wave, and any new spikes could make it even more difficult to get sweatpants through the door. And while some of the company’s Asian factories are set to reopen later this month, local outbreaks and global shipping slowdowns can’t be ruled out just yet.

The bigger picture: Come fly with EasyJet.
At least all those Lululemonheads are finally able to head out on a much-needed yoga retreat: airlines have been making a comeback after a year languishing on tarmac. EasyJet in particular is reportedly set to raise $1.4 billion by selling more of its shares, which the UK-based budget airline is hoping will help it build up package holiday offerings and better compete with its rivals. One ticket to Bali, please.

You might also like: Should you go take a trip back to airline stocks?

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Analyst Take

Is “Common Prosperity” Making Chinese Stocks A Steal?

What’s Going On Here?

There’s been a debate in China over “common prosperity” for decades now.

Long story short, the debate is whether the government should prioritize economic growth or economic equality. And right now, the latter’s winning.

You’ll have seen it play out in real time recently: it’s why China’s been cracking down on some of its most successful companies.

But some optimistic investors say this is actually nothing new, and they’re taking the chance to pile in while one of China’s key indexes is so much lower than its American equivalent.

The question is whether they’re right or wrong to do that.

So that’s today’s Insight: whether this is just a blip in these companies’ long-term fortunes, and if you should be buying while the going’s cheap.

Read or listen to the Insight here

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