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Coinbase (COIN) is pushing into the prediction markets and tokenized stocks, moves Bloomberg says could debut as soon as next week. The steps extend COIN’s strategy of building an “everything app” by layering new retail and derivatives products onto its core exchange.

• Prediction markets let users buy/sell contracts that pay out based on real-world event outcomes (think binary yes/no markets). Tokenized stocks are blockchain-based tokens that represent exposure to equity prices without necessarily conveying shareholder rights.
• COIN has been assembling complementary capabilities -- notably the Deribit acquisition earlier this year -- to push deeper into derivatives and options. COIN and Deribit together produced record derivatives volumes in 3Q25 (options and perpetual futures activity contributed to an aggregate derivatives notional of roughly $840 bln).
• Gemini Space Station (GEMI) also signaled entry into U.S. prediction markets after securing a CFTC-designated contract market license, underscoring growing institutional and retail interest in event contracts.
• Robinhood Markets (HOOD) has already said prediction markets are its fastest-growing product, and established players Polymarket and Kalshi lead current market share.
• Prediction markets have moved from niche to mainstream rapidly. Trading volumes and venture capital rounds for Kalshi and Polymarket show accelerating investor interest and user adoption.
• HOOD's public comments that volumes have doubled each quarter reinforce a strong growth trajectory, though the overall market remains small vs. spot crypto and mainstream derivatives today.

Briefing.com Analyst Insight

COIN’s planned rollouts are logical extensions of its one-stop app playbook. Adding prediction markets and tokenized equities leverages existing custody and trading infrastructure to monetize new flows. Short term, these products will likely boost engagement and fee diversity (and could piggyback on COIN’s derivatives scale via the Deribit deal), but they’re unlikely to be a near-term revenue inflection on the scale of spot or derivatives trading. Over the intermediate term, however, success depends on product execution, regulatory clarity (especially for tokenized stocks and U.S. event contracts), and whether COIN can convert casual users into repeat prediction-market traders. Given strong competition from incumbents (Polymarket, Kalshi) and fast movers like HOOD and GEMI, COIN can capture meaningful share, but material earnings upside will require the market itself to keep expanding and for COIN to avoid regulatory friction.

lululemon athletica (LULU) is sharply higher today after reporting its Q3 (Oct) results last night. The company beat expectations on the top and bottom line, with revenue increasing 7.1% to $2.57 bln. The company also guided Q4 EPS to $4.66-4.76, which was below expectations, and revenue to $3.50-3.59 bln, which was in line. Perhaps the biggest news was that CEO Calvin McDonald plans to step down from the role, effective January 31.

• CFO Meghan Frank and CCO André Maestrini will lead as interim co-CEOs following Calvin McDonald's transition; meanwhile, founder Chip Wilson publicly criticized the board's succession planning and said he will continue engaging the company as the CEO search unfolds.
• Comp sales increased +1% (+2% CC), consistent with the prior quarter, while US comps decelerated to -5% and international comps accelerated to +18%, keeping the US as the key pressure point.
• More specifically, Americas revenue declined 2% with the US down 3% and Canada down 1%, while international revenue increased 33%, led by China Mainland where revenue rose 46% (+47% CC) and comps jumped 25%.
• Margin pressure was still evident, with gross margin at 55.6%, down 290 bps, driven mainly by tariffs and higher markdowns, as shoppers leaned into value and LULU cleared end-of-life products.
• The action plan is also tracking, but the meaningful product lift is still expected in Spring 2026 as LULU works to refresh key franchises, increase newness, and shorten product development cycles.
• Looking ahead, the company cited encouraging traffic and performance over Thanksgiving and Black Friday, though demand has softened since; it also announced a $1 bln increase to its share repurchase authorization.

Briefing.com Analyst Insight

While LULU beat expectations on the top and bottom line, it is still grappling with some clear challenges. Its US business, its largest market, remains under pressure, as revenue declined and comps decelerated further. Profitability is also being squeezed by tariffs and elevated markdown activity, which shows up in the Q4 guide with revenue in-line but EPS trailing expectations. That said, after a tough stretch of earnings reactions this year, the better-than-expected Q3 results are providing some relief.

Holiday commentary was also a bit mixed. Thanksgiving and Black Friday performance was encouraging, but management acknowledged trends have softened since, which suggests demand may be increasingly tied to peak shopping moments. On the strategic front, management sounded constructive on the product innovation pipeline and acknowledged that certain franchises have gone stale, but it continues to see the meaningful product inflection as a 2026 story, which keeps a timing overhang. The CEO transition adds another layer, and while a change at the top may be viewed as a step in the right direction given how much the growth narrative has cooled, investors will likely stay focused on the CEO search and governance dynamics, particularly after founder Chip Wilson's public criticism that signals a preference for an external leader and a more product-first reset. For now, the Q3 beat, incremental buyback support, and the prospect of a longer-term turnaround are lifting the stock, but the near-term backdrop still looks challenging.

Broadcom (AVGO -11%) is trading sharply lower today despite posting an impressive finish to FY25. The semiconductor and infrastructure software giant delivered upside Q4 (Oct) results, issued Q1 (Jan) revenue guidance above consensus, and even raised its dividend by 10%. The problem: expectations were sky-high, with the stock up over +180% since April, leaving little room for merely "strong" results.

• Semiconductor Solutions segment (61% of Q4 revenue) posted Q4 revenue of $11.1 bln, up 35% yr/yr, an acceleration from prior quarters. AI semiconductor revenue: $6.5 bln, up 74% yr/yr. Custom accelerator revenue more than doubled yr/yr as customers increasingly adopt XPUs to train LLMs and scale monetization platforms.
• Q1 outlook: Semiconductor segment revenue: $12.3 bln, up 50% yr/yr. AI semiconductor revenue: $8.2 bln, up 100% yr/yr, driven by custom AI accelerators and Ethernet AI switches.
• Infrastructure Software segment (39% of Q4 revenue) posted Q4 revenue of $6.9 bln, up 19% yr/yr. Bookings strength continued: $10.4 bln in total contract value vs $8.2 bln last year.
• FY26 Commentary: No detailed guidance, but directionally: AI revenue expected to accelerate and remain the primary growth driver. Non-AI semiconductor revenue stable. Infrastructure software to grow low-double digits, led by VMware.
• Why Is the Stock Down? Despite a fundamentally strong quarter, AVGO had been priced to perfection, surging over +180% from its April lows. While results and commentary were solid, the FY26 tone wasn't quite as hyper-bullish as the market hoped, particularly given the massive AI backlog and recent enthusiasm around AI accelerators and networking.

Briefing.com Analyst Insight

Broadcom's Q4 and Q1 guide check all the bullish boxes—accelerating AI semiconductor growth, exceptional networking demand, and continued VMware-driven software strength. But this is precisely the problem: the stock had already priced in an almost flawless AI upcycle. Investors wanted upside not only to Q4 and Q1, but also a more aggressive long-term AI growth outlook. While AVGO remains one of the best pure-play AI infrastructure winners, its parabolic run has pushed valuation to levels where even very strong results may not be enough. Until expectations reset, the risk/reward skews less favorably, despite Broadcom's enviable AI positioning and industry-leading backlog.

Costco (COST) delivered solid 1Q26 results, edging past EPS and revenue expectations, powered by strong traffic, a record-setting Black Friday in U.S. e-commerce, and a 14% jump in high-margin membership fee income. The company reiterated broad-based strength across food and non-food categories heading into the holiday season, while digitally enabled sales remained a standout performer.

• Comparable sales (ex-gas, ex-FX) increased 6.4%, consistent with the December 3 preannouncement, as traffic rose 3.1% and average ticket increased 3.2% worldwide.
• Digitally enabled comparable sales surged 20.5%, supported by 24% website traffic growth, 48% app traffic growth, and rapid expansion in same-day delivery via Instacart (CART), Uber (UBER), and DoorDash (DASH) -- each outpacing overall digital sales.
• Non-food standouts included pharmacy, jewelry, tires, small electronics, and apparel, all posting double-digit growth. Fresh foods were also strong, led by double-digit gains in meat, while produce performed well.
• Membership fee income jumped 14% to $1.33 bln, aided by last year’s U.S./Canada fee increase, increased Executive upgrades, and continued base growth. COST ended Q1 with 81.4 mln paid members (+5.2% yr/yr) and a 92.2% renewal rate in the U.S./Canada.
• Black Friday was a high point, generating over $250 mln in non-food e-commerce orders, part of a broader pattern of consumers seeking value in groceries, household essentials, and holiday gifting.

Briefing.com Analyst Insight:

COST’s 1Q26 results highlight impressive consistency, with comps holding near 6-7% despite tariff noise, port disruptions, and uneven monthly trends. Strength in membership income, up 14%, remains central to the COST story, supported by growing Executive penetration and expanding digital engagement. The surge in digitally enabled sales and record-setting Black Friday performance show that recent investments in personalization, app upgrades, and same-day delivery are paying off. Holiday momentum appears strong, backed by healthy inventory levels and solid seasonal demand across food and non-food categories. While renewal rates face mild pressure due to younger, digitally signed-up members, COST's value proposition and traffic engine remain exceptionally resilient heading into the peak holiday period.

Eli Lilly (LLY) is rallying following the release of positive topline results from its Phase 3 TRIUMPH-4 clinical trial evaluating retatrutide, its investigational "triple G" agonist. The trial, which studied the drug in participants with obesity or overweight and knee osteoarthritis (OA), demonstrated unprecedented efficacy. Retatrutide achieved up to 28.7% mean weight loss and met key secondary endpoints for pain relief, potentially positioning it as a functional cure for obesity-related joint degradation and a viable alternative to bariatric surgery.

• Participants on the highest dose of retatrutide achieved a mean weight reduction of 28.7% (approx. 71.2 lbs) at the trial's conclusion, significantly outperforming the 15-20% benchmarks set by current GLP-1/GIP therapies like LLY's own Zepbound.
• The study met its primary and key secondary endpoints for knee osteoarthritis, showing statistically significant improvements in the Western Ontario and McMaster Universities Osteoarthritis Index (WOMAC) pain scores compared to placebo. This data supports a potential label expansion for treating OA symptoms directly via weight management.
• The safety profile was consistent with the incretin class, with gastrointestinal (GI) issues being the most common adverse events. While generally well-tolerated, discontinuation rates were noted to be correlated with baseline BMI, suggesting the potency of the triple-agonist mechanism may require careful titration.
• Retatrutide targets the "Triple G" receptors (GLP-1, GIP, and Glucagon), a mechanism designed to burn fat more aggressively than appetite suppression alone. This positions the drug as a premium option for patients with higher BMI (Class II/III obesity) or specific comorbidities like OA and obstructive sleep apnea.
• With TRIUMPH-4 results securing the safety/efficacy profile, LLY is expected to proceed with global regulatory submissions in 2026, setting the stage for a potential commercial launch late next year or early 2027.

Briefing.com Analyst Insight:

LLY's TRIUMPH-4 data, showing 28.7% mean weight loss with retatrutide, redefines the obesity treatment standard, rivaling bariatric surgery. This validates the triple-agonist strategy and cements LLY’s competitive moat, positioning retatrutide as the "heavy artillery" for severe obesity and crucial comorbidities like osteoarthritis. The specific win in Knee OA is financially significant as it opens pathways for Medicare/insurance reimbursement based on a medical necessity (joint pain) rather than just cosmetic or preventative weight loss. However, the "intolerability" noted in some subsets suggests retatrutide may be reserved for a more specific patient population than Zepbound. Additionally, with LLY shares already trading at a premium valuation (1-year forward P/E of 31x), the market is pricing in near-perfect execution on manufacturing and supply chain ramp-up.