Inuit, AppLovin, and Lululemon Have Crashed More Than 50% in 2026. Are These Stocks Bargains or Busts?

Intuit, AppLovin and Lululemon shares have fallen 56%, 59% and 55%, respectively, in 2026. Intuit still forecasts 9%–10% revenue growth and at least 22% diluted EPS growth for fiscal 2027, while AppLovin posted June-quarter revenue and profit growth of 53% and 55%; the article views both declines as potential buying opportunities, though it advises waiting on AppLovin. Lululemon reported a 4% revenue decline for the quarter ended Aug. 2 and is judged too risky to buy amid consumer-demand challenges and uncertainty over its turnaround.

Analysis

The selloff appears to bundle unlike risks: INTU faces a multiple reset on AI disruption, APP faces both that narrative and a test of whether exceptional growth can persist, while LULU has an operating-demand problem. For INTU, the key second-order question is whether AI becomes a retention and monetization feature inside established workflows—or lowers switching costs and invites cheaper substitutes. The cited valuation is only compelling if analyst earnings estimates survive; verify customer retention, product adoption, and guidance before treating the multiple as a floor. For APP, strong recent growth does not settle whether AI makes ad creation and optimization more competitive or compresses pricing. A few quarters of growth deceleration could invalidate the cheap-on-forward-earnings case quickly. LULU’s risk is more directly tied to product relevance and consumers’ willingness to pay: CEO turnover alone does not repair demand, and discounting to clear product could pressure brand economics. Near term, positioning and sentiment can drive sharp rebounds after large declines. Over 1–3 months, guidance and quarterly operating evidence matter more than the AI narrative; over 6–18 months, INTU’s workflow defensibility, APP’s growth durability, and LULU’s product reset determine outcomes. Contrarian point: a large drawdown is not itself evidence of mispricing, but treating all three declines as the same AI-driven opportunity misses LULU’s distinct execution risk.

Key Decisions for Investors

• INTU: Consider a staged long rather than buying the full position on the valuation claim alone. Add only if guidance and customer/product indicators support the stated earnings trajectory; cut the thesis if management lowers outlook or retention weakens.
• APP: Stay on the watchlist rather than chasing a forward-multiple screen. Reassess after the next one or two reports; sustained growth with stable monetization supports entry, while material deceleration or evidence of pricing pressure falsifies the bull case.
• LULU: Avoid a contrarian long until demand stabilizes; do not assume CEO change is a catalyst by itself. A short is higher-risk after the drawdown, so require further negative guidance or worsening sales evidence before initiating one.
• Track revisions and operating metrics, not just share prices: INTU earnings guidance and retention, APP revenue growth and monetization, and LULU comparable sales, discounting, and inventory. These are the clearest near-term thesis checkpoints.