WEBVTT - PayPal and Marvell Lower; Gap and Nvidia Climb

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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. It is time for

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<v Speaker 1>John Tucker to shine. with his stock movers here today.

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<v Speaker 1>Is anything moving, John?

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<v Speaker 2>There's actually a lot moving. Remember this one? We were

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<v Speaker 2>talking about this earlier this year. It was potentially one

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<v Speaker 2>of the biggest leverage buyouts ever. Now it looks like

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<v Speaker 2>we're going to have to go it alone. A consortium

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<v Speaker 2>led by Stripe and the private equity firm Advent International

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<v Speaker 2>abandoning plans to acquire PayPal. PayPal really taking it on

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<v Speaker 2>the chin this morning. Earlier this year, you'll remember they

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<v Speaker 2>had teamed up. They came up with an acquisition offer

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<v Speaker 2>of $ 60. 50 a share. That would have valued PayPal at

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<v Speaker 2>more than $ 53 billion. Founded in, what, the late 1990s,

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<v Speaker 2>PayPal was an early mover in the digital payments and

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<v Speaker 2>has since struggled with modernizing the payment technologies. You have

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<v Speaker 2>Apple and Alphabet seizing a lot of the market share

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<v Speaker 2>in that space. They ousted the former chief executive officer,

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<v Speaker 2>Alec Criss, earlier this year. They replaced him with Enrique Loris,

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<v Speaker 2>who took over the role in March. Now, he has

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<v Speaker 2>said he's going to set specific financial goals for PayPal,

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<v Speaker 2>change how the payments company reports earnings, and assign each

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<v Speaker 2>line of business a specific revenue target to try and

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<v Speaker 2>give investors a better sense of the potential for PayPal.

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<v Speaker 2>I think about whenever I buy something online, the first

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<v Speaker 2>option is always Apple Pay. The second option is always

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<v Speaker 2>Google Pay.

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<v Speaker 1>And then PayPal is like the third, even though, as

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<v Speaker 1>you said, it's the pioneer. It was the first mover here.

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<v Speaker 2>And thus, you have just underscored the problems facing this company.

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<v Speaker 1>And if somebody doesn't have the Apple Pay option when

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<v Speaker 1>I'm buying something, it ain't happening.

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<v Speaker 2>It's just not happening. They're not getting paid. I thought

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<v Speaker 2>you used cash for everything.

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<v Speaker 1>I do use cash, and I do have a lot.

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<v Speaker 2>Oh, here it comes, Scarlett.

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<v Speaker 1>I know. I've seen this. A lot of leads in cash.

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<v Speaker 1>But Apple Pay is just the best. And if somebody

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<v Speaker 1>doesn't have it, they're just not getting paid.

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<v Speaker 2>All right. Marvell posting a moderate beat and raising its

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<v Speaker 2>guidance for the shares. Fell. Investors want more. Actually, they're

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<v Speaker 2>remaining focused on Marvel's partnership with Google. And the big

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<v Speaker 2>impact of this deal, they said in their earnings report,

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<v Speaker 2>won't be seen until fiscal year 2029's results and beyond.

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<v Speaker 2>That feels like.

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<v Speaker 1>Forever from now.

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<v Speaker 2>Yeah, that's a lot farther than everybody had hoped for.

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<v Speaker 2>The company did post revenue of $ 2. 5 billion in the

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<v Speaker 2>second quarter. That was in line with expectations. They also

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<v Speaker 2>said they're raising guidance for revenue in 2027 and 2028.

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<v Speaker 2>Shares have soared, actually, since the start of this year,

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<v Speaker 2>more than 180%. Let's do Gap. Jumping those shares, they

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<v Speaker 2>named a retail industry veteran to head Old Navy. Old

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<v Speaker 2>Navy's been kind of struggling. Michael Francis worked 26 years

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<v Speaker 2>at Target and also 10 years at Walmart. He's going

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<v Speaker 2>to take over as the CEO of Old Navy on

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<v Speaker 2>November 2nd. So this appointment follows a 4% sales decline

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<v Speaker 2>last quarter at Old Navy stores. As for the earnings,

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<v Speaker 2>Gap did trim the upper range of its outlook for

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<v Speaker 2>2026 net sales. Also cut the forecast for Old Navy's

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<v Speaker 2>comp sales. The company raised its full-year outlook for earnings

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<v Speaker 2>per share. The new guy, Francis, known as a marketing

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<v Speaker 2>guru for the industry. You'll remember he helped. He was

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<v Speaker 2>a target. He helped helm their what we called cheap

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<v Speaker 2>chic popularity during.

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<v Speaker 1>When it was Target.

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<v Speaker 2>During the 2000s. The big box retailer at Walmart, when

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<v Speaker 2>he was there, they rolled out designer collaborations.

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<v Speaker 1>The Stock Movers Report from Bloomberg Radio. Check back with

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