WEBVTT - Weekly Roundup: Western Digital Rises, Broadcom Soars, Lululemon Drops

0:00:02.520 --> 0:00:07.400
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.480
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.920
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.920 --> 0:00:18.720
<v Speaker 1>Let's take a look at some stocks on the move

0:00:18.800 --> 0:00:21.639
<v Speaker 1>this week. I'm Tim Staneveek along with Carol Masser, and

0:00:21.640 --> 0:00:25.000
<v Speaker 1>we're joined by Bloomberg News Deputy team leader for US

0:00:25.040 --> 0:00:29.880
<v Speaker 1>Equities Jessmanton Jess Lot Moving this week, what did you pick?

0:00:30.120 --> 0:00:32.920
<v Speaker 3>The top performer and the best performer in the S

0:00:32.960 --> 0:00:35.880
<v Speaker 3>and P five hundred was Western Digital. The ticker symbol

0:00:36.040 --> 0:00:39.360
<v Speaker 3>is WDC, so if you use the MLV function you

0:00:39.360 --> 0:00:41.159
<v Speaker 3>could see that on a weekly basis. So this is

0:00:41.200 --> 0:00:45.400
<v Speaker 3>a digital stored solutions compatible with MAX and PCs and

0:00:45.440 --> 0:00:48.440
<v Speaker 3>things like that. So hard disk drives obviously, and this

0:00:48.479 --> 0:00:50.920
<v Speaker 3>is a big time when you're thinking about generative AI

0:00:51.240 --> 0:00:53.120
<v Speaker 3>and how it's going to have a huge impact on

0:00:53.159 --> 0:00:55.760
<v Speaker 3>those large corporations and how they do business. So what

0:00:55.880 --> 0:00:58.040
<v Speaker 3>really kind of catapulted this rally this week on a

0:00:58.040 --> 0:01:01.760
<v Speaker 3>weekly basis up almost fifteen percent this week was basically

0:01:02.240 --> 0:01:05.200
<v Speaker 3>Morgan Stanley ended up naming the stop as its top

0:01:05.400 --> 0:01:08.120
<v Speaker 3>picked and how this what was once thought of as

0:01:08.120 --> 0:01:10.560
<v Speaker 3>a laggard could end up becoming more of an industry

0:01:10.600 --> 0:01:14.640
<v Speaker 3>type winner because usually it gets overshadowed by Seagate, which

0:01:14.680 --> 0:01:17.640
<v Speaker 3>I will mention if you look at that ticker STX

0:01:17.640 --> 0:01:20.039
<v Speaker 3>this week also one of the top performers, up twelve

0:01:20.080 --> 0:01:23.240
<v Speaker 3>percent on a weekly basis. So Eric Woodring is the

0:01:23.280 --> 0:01:25.679
<v Speaker 3>analyst at Morgan Stanley, so he has a firm and

0:01:25.840 --> 0:01:29.319
<v Speaker 3>basically maintained this by rating on the data storage company.

0:01:29.400 --> 0:01:31.560
<v Speaker 3>So it boosted its price target to ninety nine dollars

0:01:31.640 --> 0:01:34.160
<v Speaker 3>and it was previously ninety two dollars. And the big

0:01:34.160 --> 0:01:35.760
<v Speaker 3>thing on this is if you just look from a

0:01:35.840 --> 0:01:39.039
<v Speaker 3>valuation perspective, is what he was arguing. He was believing

0:01:39.040 --> 0:01:42.040
<v Speaker 3>that Western Digital's twenty percent valuation discount over some of

0:01:42.080 --> 0:01:46.520
<v Speaker 3>its larger peers is basically being overlooked compared to what

0:01:46.640 --> 0:01:48.680
<v Speaker 3>is happening on the fundamental side, and they see that

0:01:48.760 --> 0:01:51.200
<v Speaker 3>more probability in the future and some of the issues

0:01:51.240 --> 0:01:53.720
<v Speaker 3>it had from a management perspective is expected to improve.

0:01:53.760 --> 0:01:55.520
<v Speaker 3>So that, of course one of the top performers this

0:01:55.560 --> 0:01:56.520
<v Speaker 3>week along with Seagate.

0:01:56.640 --> 0:01:58.520
<v Speaker 4>Yeah, that was one of the gainers from throughout the

0:01:58.520 --> 0:02:00.280
<v Speaker 4>week for me as well. I mean this dock now

0:02:00.360 --> 0:02:02.160
<v Speaker 4>up about one hundred and four percent year to date,

0:02:02.280 --> 0:02:04.600
<v Speaker 4>so quite a tear. It makes me think we got

0:02:04.640 --> 0:02:06.800
<v Speaker 4>to look at these sectors or get these CEOs on right.

0:02:06.920 --> 0:02:09.560
<v Speaker 1>Yeah, sounds good. Hey, speaking of a stock that did

0:02:09.560 --> 0:02:14.160
<v Speaker 1>pretty well this week, Broadcom chicker AVG pretty well, not

0:02:14.240 --> 0:02:17.120
<v Speaker 1>as well as Western Digital, but still very well.

0:02:17.200 --> 0:02:20.240
<v Speaker 3>Right, So up almost thirteen percent on a weekly basis,

0:02:20.240 --> 0:02:23.120
<v Speaker 3>and as you mentioned, the ticker avgo and of course

0:02:23.240 --> 0:02:25.760
<v Speaker 3>the share storing on its work with open Ai to

0:02:25.840 --> 0:02:28.960
<v Speaker 3>create a new AI chip, and just recently in recent weeks,

0:02:28.960 --> 0:02:31.240
<v Speaker 3>people were talking about when it came to in videos

0:02:31.400 --> 0:02:34.919
<v Speaker 3>revenue forecasts not coming in quite as strong as what

0:02:35.080 --> 0:02:37.360
<v Speaker 3>analysts had be anticipating, as kind of a rare to

0:02:37.360 --> 0:02:39.839
<v Speaker 3>see the poster child of AI do that. But then

0:02:39.919 --> 0:02:43.079
<v Speaker 3>still you can't overlook Broadcom because it's still seen as

0:02:43.120 --> 0:02:46.040
<v Speaker 3>a key AI beneficiary and so the fact that it's

0:02:46.080 --> 0:02:49.560
<v Speaker 3>holding up well and also actually added more than two

0:02:49.639 --> 0:02:52.440
<v Speaker 3>hundred billion dollars to the company's market cap on Friday.

0:02:52.560 --> 0:02:54.480
<v Speaker 3>So if you're looking at the chip designers and how

0:02:54.480 --> 0:02:57.320
<v Speaker 3>it's benefiting from a post chat GBT boom, that actually

0:02:57.360 --> 0:02:59.840
<v Speaker 3>gave investors some more optimism on the AI story. On

0:02:59.840 --> 0:03:03.359
<v Speaker 3>the back of some components with an nvidious report recently

0:03:03.440 --> 0:03:05.760
<v Speaker 3>about that missed some of analysts expectations.

0:03:05.800 --> 0:03:09.399
<v Speaker 4>Broadcom now up about almost forty five percent year to date,

0:03:09.520 --> 0:03:13.119
<v Speaker 4>so definitely some momentum into that. One not having such

0:03:13.120 --> 0:03:14.520
<v Speaker 4>a great week Lululemon.

0:03:15.000 --> 0:03:19.440
<v Speaker 3>Lulu is the ticker symbol, So Lulu down seventeen percent

0:03:19.840 --> 0:03:23.680
<v Speaker 3>this week and that was basically it's worst weekly performance

0:03:23.680 --> 0:03:27.040
<v Speaker 3>since March of twenty twenty. So unfortunately, I mean, when

0:03:27.080 --> 0:03:29.160
<v Speaker 3>you think about some of the ath leisure were and

0:03:30.000 --> 0:03:32.960
<v Speaker 3>maybe more expensive compared to some of its counterparts, and

0:03:32.960 --> 0:03:35.360
<v Speaker 3>what that's a tell on the economy. Unfortunately, it's having

0:03:35.360 --> 0:03:38.920
<v Speaker 3>this elusive recovery that's prompting seven analyst cuts and actually

0:03:38.920 --> 0:03:41.080
<v Speaker 3>more than that now, so the shares hit its lowest

0:03:41.160 --> 0:03:43.560
<v Speaker 3>level since the onset of the pandemic. And unfortunately, what

0:03:43.640 --> 0:03:45.680
<v Speaker 3>happened here and why this happened, It actually cut its

0:03:45.720 --> 0:03:48.360
<v Speaker 3>outlook for both the third quarter and the third year

0:03:48.560 --> 0:03:50.640
<v Speaker 3>and the full year rather so it actually was hurt

0:03:50.720 --> 0:03:53.320
<v Speaker 3>by weak demand. And then also a component of that,

0:03:53.400 --> 0:03:56.040
<v Speaker 3>of course, probably not surprisingly is trade and tariffs under

0:03:56.040 --> 0:03:58.840
<v Speaker 3>the Trump administration. So you're seeing the by rating of

0:03:58.880 --> 0:04:01.680
<v Speaker 3>those shares dropping two. It's lowest since twenty fourteen if

0:04:01.680 --> 0:04:03.480
<v Speaker 3>you're looking at the an R functions, So like TD

0:04:03.600 --> 0:04:08.000
<v Speaker 3>Cowen analyst John kernin, so the company needs to strategically

0:04:08.080 --> 0:04:10.640
<v Speaker 3>pivot as the company's entering this new phase, and so

0:04:10.760 --> 0:04:14.000
<v Speaker 3>just looking at the pain in that company's stock right now.

0:04:14.080 --> 0:04:17.880
<v Speaker 3>Unfortunately that had actually recent years still outperformed many of

0:04:17.920 --> 0:04:19.919
<v Speaker 3>its peers. So whether that's a tell on the economy,

0:04:19.960 --> 0:04:21.400
<v Speaker 3>we'll have to wait and see in the cup next

0:04:21.400 --> 0:04:22.160
<v Speaker 3>few months.

0:04:22.040 --> 0:04:24.800
<v Speaker 4>Whether it's company specific or something more broadly in terms

0:04:24.839 --> 0:04:27.400
<v Speaker 4>of consumer spending. The stock, by the way, shares of

0:04:27.440 --> 0:04:30.000
<v Speaker 4>Lulu down fifty six percent year to date.

0:04:31.480 --> 0:04:35.520
<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

0:04:35.600 --> 0:04:38.160
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:38.240 --> 0:04:41.320
<v Speaker 2>making news on Wall Street and for the latest market

0:04:41.360 --> 0:04:45.839
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:45.920 --> 0:04:49.400
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:49.480 --> 0:04:50.960
<v Speaker 2>the Bloomberg Business app.