WEBVTT - Dell Soars; Gap and American Eagle Miss

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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 1>Let's take a look at some of the stocks on

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<v Speaker 1>the move today. I'm Kar at Moscow. We're joined by Bloomers,

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<v Speaker 1>Dan Curtis and Dan. Good morning. Hey. Let's begin with Dell.

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<v Speaker 1>It turns out this is another AI story. Tell us more.

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<v Speaker 3>Yeah. Shares of Dell are up thirty seven percent in

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<v Speaker 3>the pre market as the company forecasts one hundred and

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<v Speaker 3>sixty seven billion dollars in revenue in the current fiscal year.

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<v Speaker 3>That's nearly a fifty percent jump, and it's driven by

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<v Speaker 3>sixty billion dollars from sale of AI servers. Overall, that

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<v Speaker 3>guidance is an increase of over twenty five billion dollars

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<v Speaker 3>from the last company projection, really lifting the stock in

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<v Speaker 3>the pre market. And these servers are designed to run

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<v Speaker 3>on AI workloads. The company is seeing demand outpacing supply

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<v Speaker 3>across all of its businesses, so it's really an AI

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<v Speaker 3>demand story here. It's lifting other shares of companies that

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<v Speaker 3>do similar things. Hewlett Packard Enterprises up fifteen percent in

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<v Speaker 3>the pre market. Super micro computers up nearly ten percent

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<v Speaker 3>in the pre market, so all those forecasts were strong. Also,

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<v Speaker 3>the company did come in with a beat on the

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<v Speaker 3>top and bottom line for the first quarter, really powering

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<v Speaker 3>the shares hire Today.

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<v Speaker 1>We've been hearing about turnaround plans a GAP, but it

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<v Speaker 1>turns out that those plans may have been struggling just

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<v Speaker 1>a bit in the last quarter. What do they tell us?

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<v Speaker 3>Yeah, so GAP shares are down sixteen percent in the

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<v Speaker 3>pre market as the retailer lowers its outlook. As you mentioned,

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<v Speaker 3>it's looking for a turnaround, but it's not seeing it

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<v Speaker 3>that seeing that yet. Old Navy, which is the company's

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<v Speaker 3>biggest brand, is the primary driver of the revision lower

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<v Speaker 3>and the CEO noted varied performance across the company's different brands. Overall,

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<v Speaker 3>first quarter comparable sales missed estimates, Old Navy, Banana Republic

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<v Speaker 3>start to show signs of movements but still fell shorts

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<v Speaker 3>of estimates, and the company's athletic brand Athleta, saw an

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<v Speaker 3>eleven percent drop in comparable sales. The company said in general,

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<v Speaker 3>it didn't get right fashion and value mix, particularly for dresses.

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<v Speaker 3>As you said, CEO has been looking for a turnaround.

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<v Speaker 3>The company has been using collaborations and celebrities to try

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<v Speaker 3>and get that that not taking traction yet.

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<v Speaker 1>Yeah, and it turns out things really weren't much better

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<v Speaker 1>for American Eagle, were they.

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<v Speaker 3>No, those shares are down eleven percent in the pre

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<v Speaker 3>market under ticker AEO, and it's actually a similar story

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<v Speaker 3>to GAP. Part of the company's women's fashion segment didn't

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<v Speaker 3>align with what customers were looking for, and that was

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<v Speaker 3>the primary driver of American Eagles sales decline. So the

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<v Speaker 3>company saw total sales and comparable sales both declining two

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<v Speaker 3>percent in the first quarter. Even with that drop, the

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<v Speaker 3>company is maintaining its full year outlook and that all

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<v Speaker 3>that weakness is overshadowing strength that the company saw from

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<v Speaker 3>its areas brand.

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<v Speaker 1>No, we also get interneys from Sentinel one. Tell us

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<v Speaker 1>more about that one.

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<v Speaker 3>Yeah, this is a software company and it's giving weaker

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<v Speaker 3>than expected revenue forecast for the current quarter. That has

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<v Speaker 3>shares down nearly seventeen percent underticker s in the pre market.

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<v Speaker 3>Company also announced eight percent reduction in full time employees

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<v Speaker 3>it's been rolling out AI, noting productivity gains across the

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<v Speaker 3>organization and while it didn't say that that was the

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<v Speaker 3>specific reason for the job cuts. It said it has

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<v Speaker 3>seen productivity gains and it's also looking for organizational simplicity.

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<v Speaker 3>The company is trying to focus on Sentinel one, its

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<v Speaker 3>autonomous AI driven security platform, and this is something a

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<v Speaker 3>lot of software is trying to do, is leverage AI.

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<v Speaker 3>The Sentinel one is traditionally known for endpoint security, which

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<v Speaker 3>is protecting computers and other devices. It's trying to use

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<v Speaker 3>Sentinel one to span the broader platform security space, but

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<v Speaker 3>it's not quite convincing investors that. In the pre market today.

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