The stock will probably be around $50 by the end of the year. We’re clearly in an AI bubble, and the AI-driven stocks are telling a very different story from reality. Our team isn’t ready to handle what’s coming.
We’re stuck in an economic trap. If we raise prices to protect margins from tariffs, we risk losing customers. If we don’t, margins get crushed. Discretionary spending is tightening, so fewer people will be buying high-end gear this holiday season. Retail looks soft, companies are hiring less and most aren’t looking to add traditional holiday staff at prior year levels.
Not everything is leadership’s fault. Some of this is just macroeconomic turbulence. But the bigger issue is that our current leadership is a throwback. They’re just not equipped to deal with today’s high-volatility environment. And unfortunately, many of the same people who created these problems are still running the show, some of them even promoted.
We might see slightly better earnings in December, but I expect it to come with a warning about a tough year ahead. That message won’t help the stock.
Buckle up.