Investing.com’s stocks of the week

Investing.com -- U.S. stocks were lower on Friday as of midday following the latest labor market data that showed the U.S. economy added fewer jobs than anticipated in August. However, the S&P (just) and Nasdaq were still on course for weekly gains.

Here are Investing.com’s stocks of the week.

Broadcom

Broadcom shares surged Friday, up more than 10% as of 12:45 pm ET after the company posted its latest quarterly earnings following Thursday’s close, topping consensus estimates and guiding for Q4 profit above analyst expectations.

Furthermore, the Financial Times reported late Thursday that OpenAI is set to produce its first AI chip next year in collaboration with Broadcom.

KeyBanc analyst John Vinh raised the price target on Broadcom Limited to $400 from $330, maintaining an Overweight rating on the stock following the report.

“AVGO indicated it has secured orders for a fourth AI customer, which we believe is Open AI,” wrote Vinh. “We’re impressed by the addition of a fourth AI customer and remain OW.”

Google

Google (Alphabet) was given a boost on Tuesday after U.S. District Judge Amit Mehta ruled Google won’t have to sell its Chrome browser and can keep its Android operating system.

Google shares jumped more than 9% on Wednesday and followed it up with further gains. It is up more than 11% in the last week. 

“After 5+ years of courtroom drama, Google is only facing a few minor flesh wounds with this remedy package,” said analysts at Barclays following the news. “The court’s denial of the DoJ’s proposed Chrome divestiture and elimination of TAC payments remedies should ensure that most of Google’s search query share remains intact.”

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Apple shares also gained on the news, climbing 3.8% on Wednesday.

Elsewhere, it wasn’t all positive news for Alphabet this week, with the company receiving a €2.95 billion EU fine for its advertising technology practices.

Lululemon

Lululemon shares plunged more than 17% Friday after its latest quarterly earnings data disappointed investors. The company missed the consensus revenue estimate, while its Q3 and full-year guidance also disappointed.

“In light of a cautious consumer and competitive backdrop, LULU will need to further address its assortment, with the newness on the technical side not enough to offset softness in the ~40% of the business in casual ’lounge and social’ dress,” said BTIG analyst Janine Stichter.

“Further, tariffs are a more significant challenge than anticipated, as we had underestimated the impact of the closing of the de-minimis loophole (2/3 of LULU’s US e-commerce shipments from Canada).“

Ciena Corp.

Ciena shares surged, significantly boosted by a 23% rise on Thursday following its earnings release. Shares are up 19% in the past week. 

The company’s profit and revenue exceeded analyst expectations, driven by accelerating demand for high-speed connectivity solutions supporting artificial intelligence infrastructure. 

"We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of AI," said Gary Smith, president and CEO of Ciena.

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Raymond James analysts stated: “Growth is led by new massive Meta projects, but these should not overshadow the strength from other cloud and telco customers. Our price target goes to $120 from $83."

Figma

Software firm Figma saw its shares plunge almost 20% Thursday after its earnings release disappointed, with profit missing expectations, but revenue coming in above the analyst consensus estimate. 

“Figma delivered relatively in-line Q2 results with revenue (+41% YoY) coming in-line with consensus and profitability coming in modestly below (in-line adjusted for outliers),” wrote RBC Capital analysts in a note. The bank lowered its price target on Figma to $65 from $75 while maintaining a Sector Perform rating.

“While shares have become less expensive at 22.8x CY26E Revenue, valuation still looks full and we would wait for a better entry point,” the analysts added.

Figma shares have declined 24.6% in the last week.

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