n 2021, the market had priced **$LULU at \~100X earnings** for a business that was growing at **\~15% per year**. The same thing happened with Nike, the market had priced Nike at **50x earnings** for a business that was growing at less than **10% per year.** Nike lost 76% of its value in 5 years.
Since then, $LULU has **lost about 75%** of this value. At the current price of \~$100, the market is expecting the FCF to drop by about 2% for the next few years and then mildly pick back up. I think the Market is slightly pessimistic here (maybe not).
I am not buying $LULU, but there might be an opportunity. On the other hand, Jim Cramer said $LULU hit its bottom, so that makes me nervous 🤠