A rundown of today’s biggest market movers and why shares swung. Costco’s strong quarter reverses a dip amid membership and valuation chatter. Gap slips after underperforming brands dent sales. Day One Biopharmaceuticals soars on a surprise acquisition and takeover premium.
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insights INSIGHT
Costco Shines As A Value Destination
Costco benefits as a recession trade where shoppers hunt deals, boosting membership-driven sales and margin resilience.
Management is also expanding food services like cake delivery and deli trays to attract younger customers and drive store traffic.
question_answer ANECDOTE
Producer Loves Costco Rotisserie Chicken
Producer Sebastian Escobar's love for Costco's $5 rotisserie chicken was highlighted as a cultural anecdote about member value.
Hosts used the rotisserie example to illustrate Costco's everyday low-price draw and membership appeal.
insights INSIGHT
Gap Misses On Key Brands Old Navy And Athleta
Gap's quarter missed expectations with Old Navy and Athleta underperforming while Gap and Banana Republic beat estimates.
The weakness ties to heightened competition in Athleta's category and the company is pitching a 2026 forecast as a bright spot.
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Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
- Costco (COST) shares are up, erasing an earlier decline, after the club chain reported strong second-quarter results. While bears point out that paid membership growth rates slowed during the quarter, Morgan Stanley attributes the deceleration to fewer new warehouse openings. Costco’s premium valuation is also a point of contention, as it trades at about 47 times forward earnings, which is ahead of Walmart and well above peer BJ’s Wholesale. Shares are up 16% year-to-date while the S&P 500 Index has slid 1.1%.
- Gap (GAP) reported fourth-quarter sales and profit that came in slightly below expectations, as two of its apparel chains underperformed. Old Navy, the company’s biggest brand, and Athleta, its smallest, missed comparable-sales estimates, while Gap and Banana Republic beat. Shares of Gap fell as much as 11% on Friday. That erased the stock’s gain for the year and was the biggest intraday drop since May.
- Day One Biopharmaceuticals (DAWN) saw its shares leap as much as 66%, the most intraday since June 2022, after Servier agreed to acquire the biotech company for $21.50 per share in cash, representing a total equity value of approximately $2.5 billion. Servier agreed to pay $21.50 a share for Day One in a deal that’s expected to close in the second quarter, the companies said on Friday. That’s a 68% premium to Day One’s closing price on Thursday.
Stock Movers