Michael Burry Says LULU Stock Is ‘Screaming Cheap’ While Apple Shares Are ‘Permacostly’ Like Costco

• Burry's comments come after Lululemon reported another quarter of pressure in its U.S. business and cut its full-year outlook.
• Lululemon’s U.S. business remains under pressure, with Americas comparable sales falling 5% in the first quarter.
• The company cut its full-year 2026 revenue and earnings outlook, while international sales continued to grow.

Michael Burry stuck to his bullish view on Lululemon Athletica (LULU), calling the stock “screaming cheap” in Substack comments over the weekend and comparing Apple (AAPL) shares to Costco (COST) stock.

A reader noted that Burry appeared to have nearly doubled his LULU position, which now accounts for 17.4% of his holdings versus 9% for Molina Healthcare (MOH), after adding to both positions. “I believe LULU is screaming cheap here,” Burry justified in his response.

Burry was less interested in betting against Apple when asked when he might short the stock. “It is like Costco. Once in a blue moon I take my chances. It's just permacostly,” he wrote.

LULU stock edged 0.16% lower in pre-market trade amid broader market weakness. On Stocktwits, retail sentiment around the company fell to ‘bullish’ from ‘extremely bullish’ over the past day, accompanied by chatter at ‘high’ levels.  

Meanwhile, AAPL stock gained around 0.40% in pre-market trade, with sentiment trending in the ‘bearish’ zone and chatter at ‘low’ levels.

Lululemon's U.S. Problem Remains The Key Test

Burry's comments come after Lululemon reported another quarter of pressure in its U.S. business and cut its full-year outlook.

In the first quarter (Q1) of 2026, revenue rose 4% to $2.5 billion, but Americas revenue fell 3%, while comparable sales in the region declined 5%. International revenue increased 22%, helping offset some of the weakness in North America.

Lululemon also lowered its full-year 2026 outlook. The company now expects revenue of $11 billion to $11.15 billion, compared with its previous forecast of $11.35 billion to $11.5 billion. EPS guidance was cut to $10.95 to $11.15 from $12.10 to $12.30.

Its second-quarter (Q2) earnings are scheduled for next week on Friday, with Wall Street expecting earnings of $1.80 per share on revenue of $2.46 billion.

LULU’s stock has fallen over 40% this year. According to Koyfin data, 29 of the 34 analysts covering the stock rate it a ‘Hold,’ with one analyst recommending ‘Buy.’ The average price target stood at $127.92, implying an upside of around 5.6%. 

Burry Keeps Betting On Lululemon

In the past, Burry has said that investors have become too pessimistic about the athletic apparel company, pointing to Lululemon's tangible book value per share, which he said doubled from roughly $20 to $40 over three years. 

He also compared the market's treatment of LULU with GameStop (GME) in 2019 and said LULU's “relative value” is more compelling than that of some large technology stocks, including Microsoft (MSFT).

Burry Doesn't See Apple The Same Way

Burry compared the company to Costco, suggesting both are businesses where valuation can be a reason to avoid owning the stock but not necessarily a reason to bet against it.

The distinction is notable given Burry's recent bearish positioning toward parts of the technology and AI trade. He has publicly discussed short positions involving Nvidia(NVDA), Micron Technology (MU), Oracle (ORCL), Nebius (NBIS),  iShares Semiconductor ETF (SOXX), and Invesco QQQ Trust Series 1 (QQQ).

His larger long positions now include Zoetis (ZTS), MercadoLibre (MELI), JD.com (JD) and Adobe (ADBE), according to recent tracking of his Substack disclosures. He has moved his Alibaba (BABA) position entirely into JD.com. Burry said Alibaba would need to fall by half before he would reconsider buying it.

Read also: Michael Burry Points To 'Shenanigans' In Off‑Balance‑Sheet Deals, Says Rate‑Insensitive AI Spending Surge Hides Trouble

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