WEBVTT - Broadcom Sinks After Disappointing Outlook; CrowdStrike Results Fail to Wow; Petco Shares Drop

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market. Harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Isabelle Lee. Starting off

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<v Speaker 3>with the stock getting top billing for all the wrong reasons.

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<v Speaker 3>Broadcom is sinking pre market some earnings disappointment that might

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<v Speaker 3>not sum it up, Isabelle, good morning.

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<v Speaker 1>Good morning.

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<v Speaker 4>It's sinking definitely if I'm looking at my screen correctly,

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<v Speaker 4>it's down by nearly fifteen percent. And again it's always

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<v Speaker 4>because of the outlook. They gave an underwhelming outlook given

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<v Speaker 4>the chip industries AI related demand is probably waning, so

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<v Speaker 4>this is a signal that efforts to gain around the

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<v Speaker 4>burgeoning industry is really going more slowly than anticipated. So

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<v Speaker 4>they expected revenue for aasmicconductor to be sixteen billion in

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<v Speaker 4>the fiscal third quarter. Analysts predicted seventeen keen point two

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<v Speaker 4>billion on average. The forecast also fell short of estimates.

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<v Speaker 4>They had fifty seven point six billion, which again is

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<v Speaker 4>below what analysts projected. So I mean it's really an

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<v Speaker 4>interesting story. And don't forget that Broadcom is also trying

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<v Speaker 4>to pivot to AI and it's against really outsized investor expectations.

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<v Speaker 4>It makes you think that do they even stand a chance?

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<v Speaker 4>But I guess you know you have to try.

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<v Speaker 3>Yeah, really Well, right behind it is crowd Strike following

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<v Speaker 3>their results. That's a pretty big drop as.

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<v Speaker 4>Well, big drop as well, down nearly eleven percent in

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<v Speaker 4>pre market trade. This is a security software company. They

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<v Speaker 4>reported first quarter results and they gave an outlook. So

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<v Speaker 4>the results beat expectations. The fullier forecast raised on key metrics,

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<v Speaker 4>but the report wasn't strong enough to extend the recent strength,

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<v Speaker 4>which is why you see this huge pummeling downwards. But interestingly,

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<v Speaker 4>we have Susquehanna raising their price target from four hundred

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<v Speaker 4>and seventy five to eight hundred, so that's almost double.

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<v Speaker 4>Scotia Bank also raised their price target from four hundred

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<v Speaker 4>and seventy five to eight hundred five, so that to

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<v Speaker 4>me was a little interesting. Why we're seeing that, but

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<v Speaker 4>I guess they just believe that the stock has more

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<v Speaker 4>to run from here on out.

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<v Speaker 3>Okay, Well, moving from the tech names to some other

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<v Speaker 3>companies that reported earnings The downward trend continues for Pedco,

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<v Speaker 3>living up to its ticker symbol.

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<v Speaker 4>This morning, I love the ticker well, I know they

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<v Speaker 4>really won big on that one. So stock is down

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<v Speaker 4>also a negative twelve percent. I've been giving you double

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<v Speaker 4>digit losses this morning, but we're still optimistic. So this

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<v Speaker 4>is a path health and wellness company. The second quarter

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<v Speaker 4>adjusted EBITDA forecast came in below estimates, so you see

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<v Speaker 4>shares obviously following the company's second quarter forecasts fellow below estimates,

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<v Speaker 4>outwing a better than expected first quarter. So this is

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<v Speaker 4>a San Diego based company. I don't know why that

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<v Speaker 4>fact is relevant, but I just ran out there, okay,

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<v Speaker 4>and adjusted EBIT quarter reach ninety seven zero point three

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<v Speaker 4>million dollars, which is at least slightly above analy's estimates

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<v Speaker 4>of ninety million dollars.

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<v Speaker 3>You've got a trend going here is about double digit losses.

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<v Speaker 3>That includes five below after their earnings.

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<v Speaker 4>I know I brought I wanted to bring down stock,

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<v Speaker 4>so I'm kidding. Actually are the biggest movers.

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<v Speaker 2>Yeah.

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<v Speaker 1>Five below ticker is hold on, I have it here.

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<v Speaker 4>Five another under ticker if Ive down by nearly eleven percent.

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<v Speaker 1>This is a discount retailer.

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<v Speaker 4>If that isn't obvious, I guess everything there is below

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<v Speaker 4>five dollars.

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<v Speaker 1>They're reporting first quarter results that.

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<v Speaker 4>Meat expectations, and they boosted a full year guidance, but

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<v Speaker 4>still it's the guidance. They signaled caution over consumers in

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<v Speaker 4>the months ahead. We hear this all the time. The

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<v Speaker 4>K shape economy, the top K. There was an interesting

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<v Speaker 4>note yesterday that it's splintering, so that's also one thing

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<v Speaker 4>we should unpack.

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<v Speaker 1>But the lower K. We know that the lower K

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<v Speaker 1>has been struggling, so you see that with five below.

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