WEBVTT - Dollar General Reports; HPE Soars; Huang Bullish on Marvell

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

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

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move today.

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<v Speaker 1>I'm Nathan Hager, joined by Bloomberg's Dan Curtis, leading with

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<v Speaker 1>the new because we just got earnings from Dollar General

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<v Speaker 1>crossing the Bloomberg terminal. Dan, how'd we do, morning, Nathan.

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<v Speaker 3>Dollar General is up about three percent in the pre

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<v Speaker 3>market off the back of that underticker DG. Overall is

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<v Speaker 3>a bit of a mix. First quarter earnings out with

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<v Speaker 3>comparable sales at two percent that was slightly shive estimates

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<v Speaker 3>for which were about two point one percent growth Net

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<v Speaker 3>sales also just shive estimates. However, bottom line came in

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<v Speaker 3>ahead of what Wall Street was expecting. The full year

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<v Speaker 3>earnings per share guidance is being lifted by ten pennies

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<v Speaker 3>per share, and that the new midpoint is higher than estimates,

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<v Speaker 3>so that's a positive on the outlook front. The company

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<v Speaker 3>is holding its full year comp vera bole sales growth

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<v Speaker 3>outlook though, so they're expecting a little bit more bottom

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<v Speaker 3>line push through. And then also the company did note

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<v Speaker 3>positive customer traffic and balance category growth. Markets are digesting this.

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<v Speaker 3>Shares have been bouncing around, but we are three percent

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<v Speaker 3>up off the back of that.

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<v Speaker 2>Okay.

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<v Speaker 1>So moving from the earning story to the big stock

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<v Speaker 1>spending story from Google parent Alphabet planning to sell a

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<v Speaker 1>bunch of shares. What's that doing for investors who currently

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<v Speaker 1>have Alphabet stock, Dan, Well.

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<v Speaker 3>It's weighing on their shares now that stock is down

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<v Speaker 3>about two percent underticker Googl in the pre market. You're right,

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<v Speaker 3>absolutely massive rays of cash. The company is looking to

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<v Speaker 3>get eighty billion dollars through equity offerings to fund its

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<v Speaker 3>AI spending spree. Forty billion dollars will be selled by

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<v Speaker 3>selling shares into the second market that's expected next quarter,

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<v Speaker 3>thirty billion in underwritten offerings and ten billion dollars in

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<v Speaker 3>an investment deal with Berkshire Hathaway. Lots of cash raise

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<v Speaker 3>here weighing on the share as you know, they look

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<v Speaker 3>at potential dilution off the back of this, and in

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<v Speaker 3>what could be one of the largest equity deals of

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<v Speaker 3>all times. Alphabet is on an unprecedented spendings free to

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<v Speaker 3>build AI infrastructure and capitalizing on growing appetite for its

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<v Speaker 3>tensor processing units he used at AI and by far

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<v Speaker 3>and away, it's the best performing mag seven stock over

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<v Speaker 3>the past year, so looking to capitalize on that by

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<v Speaker 3>selling some more shares back into the market.

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<v Speaker 1>Well, the best performing stock in this morning's pre market

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<v Speaker 1>is hp Enterprise after their earnings blowout Dan.

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<v Speaker 3>Absolutely, and they've already been doing well into this earnings report.

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<v Speaker 3>HPE is up twenty six percent in the pre market,

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<v Speaker 3>more signs of server demand from AI players, and this

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<v Speaker 3>is after HPE rallied from Dell's earnings last week, so

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<v Speaker 3>just absolute tear. The company is guiding a thirty one

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<v Speaker 3>percent increase in revenue this fiscal year and a ten

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<v Speaker 3>percent increase in the following year. Both outlooks were far

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<v Speaker 3>ahead of analyst estimates, and in particular, giving guidance so

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<v Speaker 3>far out into next fiscal year shows the company has

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<v Speaker 3>visibility on future orders and there's long term demand there.

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<v Speaker 3>Market is greeting that strongly, and as we said, this

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<v Speaker 3>follows Dell, so server demand really propping these stocks up

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<v Speaker 3>in the market.

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<v Speaker 1>And finally, HPE's been going back and forth in the

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<v Speaker 1>pre market with Marvel Technology as the biggest gainer yeah.

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<v Speaker 3>So Jensen Wong is calling Marvel the next trillion dollar company,

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<v Speaker 3>and that has those shares popping twenty four percent. So

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<v Speaker 3>Marvel just a tiny bit behind by went mind owning

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<v Speaker 3>either stock this morning, to be honest. Those comments came

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<v Speaker 3>as he appeared on stage with Marvel CEO at Computeech's

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<v Speaker 3>in Taipei, and Wang noted demand for products from Nvidia

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<v Speaker 3>and Marvel is going through the roof as quote useful

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<v Speaker 3>AI has arrived. Marvel specializes in compute chips and optical

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<v Speaker 3>interconnects and network switches, so basically how all these AI

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<v Speaker 3>data centers handle data being sent across them. Huang noted

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<v Speaker 3>the demand for optical links in general, and other optical

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<v Speaker 3>companies are off the back of that. Names like Momentum

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<v Speaker 3>up six percent, Coherent up over four percent to a

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<v Speaker 3>broad AI rally this morning.

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<v Speaker 2>This stock Movers report from Bloomberg Radio. Check back with

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