Happy Tuesday, Zingernation! Despite persistent inflation, you can still snag some great deals out there. That couch for $20 on Facebook Marketplace? Who cares what those stains are from. Found a Scotty Cameron putter at a Goodwill? You should buy some lottery tickets. But, sometimes, a good deal is just too good to be true.

–Aaron Bry & Nic Chahine

Today’s Price Action:

$SPY: +.11%
$QQQ: +.27
$DIA: +0.33%

Plus, take a look at the company that's using out-of-the-box strategies to take the AI world by storm.

TODAY’S MOST VOLATILE STOCKS

TODAY’S TOP STORY

'Buying Call Options Is Not Illegal': Professional Trader Calls Potential Roaring Kitty Ban 'Absurd'

Briefly: E-Trade reportedly considered, or is considering, a ban on the trading account of Keith Gill, aka Roaring Kitty, according to a Monday Wall Street Journal report.

Basically: E-Trade is reportedly looking into potential stock manipulation after Gill disclosed a position in GameStop worth more than $100 million, according to screenshots he posted to Reddit.

So: Dennis Dick, a professional trader and co-host of Benzinga's “PreMarket Prep” show, criticized a potential ban on Roaring Kitty, arguing Tuesday that it makes no sense.

Quoted: "I have no idea why they are even looking into his account, let alone talking about blocking his trades," Dick said. "Buying calls is not illegal."

The Context: Gill returned to social media in May after being dormant for more than two years. He began to post cryptic memes and video clips to his followers on X, breeding speculation regarding his next move.

And: Then, Sunday night, Gill posted on Reddit for the first time in years, showing screenshots of his position in GameStop.

Click here to read more.

PRESENTED BY iLEARNINGS ENGINES

Taking The AI Industry By Storm: The Story Behind iLearningEngines’ Rise To A $420 Million Enterprise

iLearningEngines' (iLE) platform stands out due to its strong out-of-the-box platform AI capabilities. Unlike many competitors, who struggle to build bespoke AI solutions on existing platforms, iLearningEngines provides a solution with proprietary models and data tailored for each of the verticals which iLE operates in. Notably, the company closed out 2023 with over $420 million in revenue.

FIVE MOVERS

Crowdstrike shares popped higher after the bell, after the cyber security play reported stronger-than-expected earnings.

Intel’s stock moved higher Tuesday afternoon after the company announced a new joint-venture plan with Apollo Global Management.

Stitch Fix shares skyrocketed in extended-hours trading after the company beat both EPS and revenue estimates.

Oil prices continued to slide on Tuesday following OPEC+’s decision to slow down planned production cuts.

Hewlett Packard joined Crowdstrike and Stitch Fix, and traded higher following the company’s Q2 earnings report.

ONE TRADE IDEA FOR TOMORROW

Lululemon Athletica Recovering From Merchandising Missteps, Says Analyst

Briefly: Oppenheimer analyst Brian Nagel reiterated an Outperform rating on the shares of Lululemon Athletica Inc with a price target of $445.00.

So: The analyst’s EPS forecast of $2.35 remains unchanged and suggests a gain of 3% from $2.28 the prior year, compared with a Street figure of $2.40.

Basically: For FY24, the analyst continues to expect EPS of $14.01 versus a current consensus forecast of $14.13 and guidance for $14.00-14.20.

The Price Action: Since the day LULU reported fourth-quarter results, shares are down more than 35% and underperforming meaningfully a decline of just 1% in the S&P 500, noted the analyst.

The Valuation: At current levels, LULU trades at a forward four quarter PE multiple of just 21x, marking the lowest level since May 2017, said the analyst.

Click here to read the full analyst breakdown. 

PRESENTED BY iLEARNINGS ENGINES

Taking The AI Industry By Storm: The Story Behind iLearningEngines’ Rise To A $420 Million Enterprise

iLearningEngines' (iLE) platform stands out due to its strong out-of-the-box platform AI capabilities. Unlike many competitors, who struggle to build bespoke AI solutions on existing platforms, iLearningEngines provides a solution with proprietary models and data tailored for each of the verticals which iLE operates in. Notably, the company closed out 2023 with over $420 million in revenue.