Why Under Armour Inc. (UAA) Skyrocketed On Tuesday?

Insider Monkey
04-16

We recently published a list of 10 Firms End Stronger on Tuesday. In this article, we are going to take a look at where Under Armour Inc. $(UAA)$ stands against other firms that end stronger on Tuesday.

A muted trading persisted on the stock market on Tuesday, with major indices ending in the red, recording minimal losses while digesting President Donald Trump’s tariff policies.

The Dow Jones declined by 0.38 percent, the S&P 500 dipped by 0.17 percent, while the tech-heavy Nasdaq dipped by 0.05 percent.

Ten companies bucked a broader market pessimism, booking modest gains during the session. In this article, we have identified the reasons behind their gains.

To come up with the list, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

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Under Armour Inc. (NYSE:UAA)

Under Armour jumped by 5.51 percent on Tuesday to finish at $5.74 apiece following news that infamous basketball player Stephen Curry will receive a $75 million stock grant from the company.

The contract, part of the long-term deal, is reportedly expected to cover the remainder of Curry’s basketball career and can become a lifetime deal, assuming certain conditions are met.

The stock award, around 8.8 million restricted stock units, reportedly will be made in two installments—in 2029 and 2034 as long as Curry remains with Under Armour.

The stock grant was on top of his direct payments from UAA, which reportedly amounts to eight figures annually, as well as the $215-million contract he currently holds with the Golden State Warriors.

In its latest earnings presentation, UAA’s net income for the quarter ending December 2024 fell by 99 percent to $1.2 million from the $110.75 million registered in the same period a year ago, as net revenues dropped 6 percent to $1.4 billion versus $1.49 billion year-on-year.

In the first nine months alone, UAA swung to a net loss of $133.8 million versus a $225-million net profit in the same period year-on-year as net revenues declined by 8.9 percent to $3.98 billion from $4.37 billion.

Overall, UAA ranks 5th on our list of firms that end stronger on Tuesday. While we acknowledge the potential of UAA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UAA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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