Lululemon Athletica (NASDAQ:LULU) stock jump nearly 9% higher on Monday, boosted by its inclusion in the S&P 500 – taking the place of Activision Blizzard which, finally, has been bought by Microsoft.
In New York, Lululemon advanced $34.30 per share or 9.06% in Monday morning trade to change hands at $411.90.
Microsoft on Friday ended its 20-month battle with regulators in the United States and the United Kingdom to close its $69 billion Activision acquisition.
It followed a revision involving Ubisoft, which now gains the cloud streaming rights to the existing Activision games inventory.
Lululemon, meanwhile, is enjoying a positive phase in the market buoyed recently by a tie-up with Peloton which sees the pair of fitness brands collaborate on digital platforms and for apparel opportunities.
In September, Lululemon reported strong second-quarter numbers well ahead of expectations and triggered a guidance upgrade for the full year.
Sales rose 18% to $2.2 billion, beating both in-house guidance and Wall Street forecasts. At the same time, earnings per share of $2.68 also handily beat analyst expectations of $2.53.
While Lululemon’s North American sales were up 11% year over year, international sales surged 52% from last year's levels.