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STOCKS TO WATCH: LULU, KING, TSLA

STOCKS TO WATCH: LULU, KING, TSLA

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STOCKS TO WATCH: LULU, KING, TSLA

STOCKS TO WATCH: LULU, KING, TSLA
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Lululemon (LULU) beat earnings and revenue estimates in the fourth quarter, but issued a weaker-than-expected outlook for the full year. The company said per-share profit for the year ended January 2015 would be $1.80 to $1.90. Analysts were expecting $2.14 a share. The athletic apparel retailer has struggled with product issues that led to a management shake-up last year. New CEO Laurent Potdevin said this will be an investment year with an emphasis on strengthening the company's foundation.

Shares of King Digital Entertainment (KING) took a beating in the stock's opening day of trading. The maker of the popular mobile game, Candy Crush, saw its shares down 16% after the company's initial public offering on the New York Stock Exchange. Shares priced at $22.50 and were lower from the start of trading. It was the worst opening day for any IPO so far this year. There have been concerns surrounding King that it may be a one hit wonder with Candy Crush.

Tesla (TSLA) reached a deal with the Ohio Automobile Dealers Association that will allow Tesla to sell its cars directly to customers in the state. The compromise will allow Tesla to keep existing stores in Columbus and Cincinnati and open a third location in Cleveland, but prohibits the company from opening any other locations. Several states are considering whether to allow the electric-car maker to sell directly to customers, rather than through licensed auto dealerships. New Jersey has already blocked Tesla from selling directly to customers.

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