Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some of the stocks on
Speaker 1: the move today. I'm Kar at Moscow. We're joined by Bloomers,
Speaker 1: Dan Curtis and Dan. Good morning. Hey. Let's begin with Dell.
Speaker 1: It turns out this is another AI story. Tell us more.
Speaker 3: Yeah. Shares of Dell are up thirty seven percent in
Speaker 3: the pre market as the company forecasts one hundred and
Speaker 3: sixty seven billion dollars in revenue in the current fiscal year.
Speaker 3: That's nearly a fifty percent jump, and it's driven by
Speaker 3: sixty billion dollars from sale of AI servers. Overall, that
Speaker 3: guidance is an increase of over twenty five billion dollars
Speaker 3: from the last company projection, really lifting the stock in
Speaker 3: the pre market. And these servers are designed to run
Speaker 3: on AI workloads. The company is seeing demand outpacing supply
Speaker 3: across all of its businesses, so it's really an AI
Speaker 3: demand story here. It's lifting other shares of companies that
Speaker 3: do similar things. Hewlett Packard Enterprises up fifteen percent in
Speaker 3: the pre market. Super micro computers up nearly ten percent
Speaker 3: in the pre market, so all those forecasts were strong. Also,
Speaker 3: the company did come in with a beat on the
Speaker 3: top and bottom line for the first quarter, really powering
Speaker 3: the shares hire Today.
Speaker 1: We've been hearing about turnaround plans a GAP, but it
Speaker 1: turns out that those plans may have been struggling just
Speaker 1: a bit in the last quarter. What do they tell us?
Speaker 3: Yeah, so GAP shares are down sixteen percent in the
Speaker 3: pre market as the retailer lowers its outlook. As you mentioned,
Speaker 3: it's looking for a turnaround, but it's not seeing it
Speaker 3: that seeing that yet. Old Navy, which is the company's
Speaker 3: biggest brand, is the primary driver of the revision lower
Speaker 3: and the CEO noted varied performance across the company's different brands. Overall,
Speaker 3: first quarter comparable sales missed estimates, Old Navy, Banana Republic
Speaker 3: start to show signs of movements but still fell shorts
Speaker 3: of estimates, and the company's athletic brand Athleta, saw an
Speaker 3: eleven percent drop in comparable sales. The company said in general,
Speaker 3: it didn't get right fashion and value mix, particularly for dresses.
Speaker 3: As you said, CEO has been looking for a turnaround.
Speaker 3: The company has been using collaborations and celebrities to try
Speaker 3: and get that that not taking traction yet.
Speaker 1: Yeah, and it turns out things really weren't much better
Speaker 1: for American Eagle, were they.
Speaker 3: No, those shares are down eleven percent in the pre
Speaker 3: market under ticker AEO, and it's actually a similar story
Speaker 3: to GAP. Part of the company's women's fashion segment didn't
Speaker 3: align with what customers were looking for, and that was
Speaker 3: the primary driver of American Eagles sales decline. So the
Speaker 3: company saw total sales and comparable sales both declining two
Speaker 3: percent in the first quarter. Even with that drop, the
Speaker 3: company is maintaining its full year outlook and that all
Speaker 3: that weakness is overshadowing strength that the company saw from
Speaker 3: its areas brand.
Speaker 1: No, we also get interneys from Sentinel one. Tell us
Speaker 1: more about that one.
Speaker 3: Yeah, this is a software company and it's giving weaker
Speaker 3: than expected revenue forecast for the current quarter. That has
Speaker 3: shares down nearly seventeen percent underticker s in the pre market.
Speaker 3: Company also announced eight percent reduction in full time employees
Speaker 3: it's been rolling out AI, noting productivity gains across the
Speaker 3: organization and while it didn't say that that was the
Speaker 3: specific reason for the job cuts. It said it has
Speaker 3: seen productivity gains and it's also looking for organizational simplicity.
Speaker 3: The company is trying to focus on Sentinel one, its
Speaker 3: autonomous AI driven security platform, and this is something a
Speaker 3: lot of software is trying to do, is leverage AI.
Speaker 3: The Sentinel one is traditionally known for endpoint security, which
Speaker 3: is protecting computers and other devices. It's trying to use
Speaker 3: Sentinel one to span the broader platform security space, but
Speaker 3: it's not quite convincing investors that. In the pre market today.
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