WEBVTT - Broadcom Slides on Disappointing AI Outlook, CrowdStrike Falls, Petco Drops

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg Data.

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<v Speaker 2>I'm Alexis Christophers. Let's take a look now at some

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<v Speaker 2>stocks on the move. Joining me for that is Carmen

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<v Speaker 2>Reinikey Markets reporter at Bloomberg. So, Carmen, you brought three

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<v Speaker 2>stocks along with you today. Let's start with a chip

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<v Speaker 2>giant involved in the AI boom. That would be Broadcom.

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<v Speaker 3>Yeah, so huge earning story here today. This is ticker

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<v Speaker 3>AVGO for Broadcom shares our down about six percent right

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<v Speaker 3>now and after hours trading. Basically, what happened here is

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<v Speaker 3>that the outlook failed to hit the high standard that

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<v Speaker 3>investors had for this company, especially after the stock has

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<v Speaker 3>had such an amazing rally over the last three months.

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<v Speaker 3>It closed near a record high today when stay and

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<v Speaker 3>was up more than I think more than sixty percent

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<v Speaker 3>from sort of a March thirtieth trough. So selling off

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<v Speaker 3>a little bit in after hours. The call is starting

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<v Speaker 3>here in a few minutes, so we'll we'll be watching

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<v Speaker 3>for that. It's actually now down almost ten percent on

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<v Speaker 3>these earnings.

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<v Speaker 2>Now I mean Broadcom though, has really been on a tear.

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<v Speaker 2>As you said, it added about two hundred and seventy

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<v Speaker 2>billion dollars in market value over the last few trading

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<v Speaker 2>sessions ahead of the earnings report. So so this drop

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<v Speaker 2>that we're seeing in the after hours, while it might

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<v Speaker 2>see my popping at first, really is a kind of

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<v Speaker 2>a you know, a drop in the bucket compared to

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<v Speaker 2>how high Broadcom has has rallied recently. I want to

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<v Speaker 2>move on to Oh, crowd Strike also out after the

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<v Speaker 2>closing bell with an earnings report that I guess didn't

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<v Speaker 2>really sit too well with investors.

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<v Speaker 3>Yeah. So similarly, crowd Strike and some of its other

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<v Speaker 3>cybersecurity piers have had a really extended rally up into

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<v Speaker 3>these earnings reports. So this is ticker see r WD.

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<v Speaker 3>It's down ten percent in after hours trading right now,

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<v Speaker 3>and its projection for second quarter revenue is also sort

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<v Speaker 3>of failing to impress investors here. They said that the

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<v Speaker 3>revenue will be between one hundred and forty three billion

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<v Speaker 3>and one hundred and forty four billion in the second quarter,

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<v Speaker 3>which is roughly in line with what analysts were expecting,

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<v Speaker 3>but the expectations are so high for these companies that

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<v Speaker 3>have had these rallies that we know that it's you

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<v Speaker 3>can't just meet the expectations. You can't even just beat.

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<v Speaker 3>You have to really beat usually to get investors excited

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<v Speaker 3>at this point.

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<v Speaker 2>Yeah, you have to really beat. And speaking of beating

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<v Speaker 2>or not, your next stock has one of my favorite

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<v Speaker 2>ticker symbols of all time. Woof right is for Petco.

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<v Speaker 2>What did they have to say after the close?

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<v Speaker 3>Yeah, so Petco is down about twelve percent. It also

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<v Speaker 3>had earnings today fell a little bit short of investor expectations,

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<v Speaker 3>especially on its second quarter profit forecast. So interesting thing also,

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<v Speaker 3>I think to point out about Petco, the stock had

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<v Speaker 3>been up about eight percent this year through today's close,

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<v Speaker 3>and if it stays trading at the current level, it's

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<v Speaker 3>set to pretty much wipe out that entire year to

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<v Speaker 3>date gain a lot of it. We've seen some choppiness

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<v Speaker 3>in a lot of these consumer stocks, especially ones that

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<v Speaker 3>are more discretionary, and so wouldn't be surprising, I guess,

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<v Speaker 3>to see more volatility ahead here.

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