WEBVTT - Desk and NetApp Gain; Gap Dips

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market harnessing the power of Bloomberg data.

0:00:17.520 --> 0:00:19.680
<v Speaker 3>Let's take a look at some stocks on the move today.

0:00:19.920 --> 0:00:24.120
<v Speaker 3>I'm Tom Keen with Bos Sweeny and Bloomberg's Alexis kristaf Well.

0:00:24.120 --> 0:00:27.000
<v Speaker 4>How lovely because my first stock is Dell, and the

0:00:27.080 --> 0:00:29.760
<v Speaker 4>stock is soaring here in the pre market. It's up

0:00:29.880 --> 0:00:32.000
<v Speaker 4>thirty four percent. But guess what it was doing better

0:00:32.040 --> 0:00:35.440
<v Speaker 4>even earlier when it was up forty percent. So after

0:00:35.560 --> 0:00:39.520
<v Speaker 4>yesterday's closing, Bell Dell came out with earnings and sales

0:00:39.520 --> 0:00:42.319
<v Speaker 4>that were much better than expected. In fact, sales were

0:00:42.400 --> 0:00:45.319
<v Speaker 4>up eighty eight percent year over year growth. I think

0:00:45.360 --> 0:00:47.960
<v Speaker 4>that's the best sales year since the company went public

0:00:47.960 --> 0:00:51.680
<v Speaker 4>again remember that back in twenty eighteen. Now, Dell also

0:00:51.840 --> 0:00:56.840
<v Speaker 4>out with an annual sales outlook that far surpassed analyst estimates.

0:00:56.840 --> 0:00:58.800
<v Speaker 4>And you know what's fueling it because when I think Dell,

0:00:58.920 --> 0:01:01.880
<v Speaker 4>I don't know about you, but I think PCs right, Nope,

0:01:02.080 --> 0:01:05.840
<v Speaker 4>servers that are firing up AI. So even Dell is

0:01:05.920 --> 0:01:08.119
<v Speaker 4>now an artificial intelligence play.

0:01:08.319 --> 0:01:11.919
<v Speaker 3>My brother is a big shot in this and he said,

0:01:12.319 --> 0:01:17.199
<v Speaker 3>the single biggest thing is you must by computing power.

0:01:17.920 --> 0:01:19.120
<v Speaker 4>Oh yeah, to be in the game.

0:01:19.160 --> 0:01:22.319
<v Speaker 3>Every house at the SaaS our house. They're buying three

0:01:22.360 --> 0:01:24.280
<v Speaker 3>Apple products this month.

0:01:24.319 --> 0:01:27.000
<v Speaker 1>I'm a stranger to compute Tom. I me and we

0:01:27.040 --> 0:01:29.880
<v Speaker 1>have a lot of different devices around and I think

0:01:29.920 --> 0:01:32.840
<v Speaker 1>I'm paying for like half of I don't know whatever.

0:01:33.360 --> 0:01:34.960
<v Speaker 4>Between that and the streaming services.

0:01:34.959 --> 0:01:36.119
<v Speaker 3>I don't know exact.

0:01:36.959 --> 0:01:40.600
<v Speaker 4>Okay, let's go to Gap, shall we? Because not a

0:01:40.600 --> 0:01:42.920
<v Speaker 4>great day for Gap shareholders. The stock is down about

0:01:43.000 --> 0:01:45.720
<v Speaker 4>sixteen percent. I remember, it's much more than just Gap.

0:01:46.080 --> 0:01:48.040
<v Speaker 4>And by the way, it's not the Gap. And people go,

0:01:48.080 --> 0:01:50.760
<v Speaker 4>I'm going to go to the Gap. It's Gap fall

0:01:50.840 --> 0:01:52.600
<v Speaker 4>into the Gap. Remember that campaign.

0:01:52.640 --> 0:01:53.880
<v Speaker 3>We call it the Gap?

0:01:54.000 --> 0:01:56.920
<v Speaker 4>All right? You know I like to be correct. So

0:01:57.040 --> 0:02:01.400
<v Speaker 4>our Gap owns Banana Republic, Old Navy an Athleta. And

0:02:01.440 --> 0:02:05.880
<v Speaker 4>the problem here has been Old Navy revenue outlook one

0:02:05.920 --> 0:02:08.600
<v Speaker 4>to two percent growth after sales and the Old Navy

0:02:08.639 --> 0:02:11.720
<v Speaker 4>brand slowed down. They said people are just not connecting

0:02:11.720 --> 0:02:13.600
<v Speaker 4>with a lot of the merchandise. They thought there would

0:02:13.639 --> 0:02:17.279
<v Speaker 4>be better sales of some of its spring and addresses

0:02:17.400 --> 0:02:20.160
<v Speaker 4>that is not happening, and also Athleta, that's that ath

0:02:20.280 --> 0:02:26.640
<v Speaker 4>leisure retailer. Sales there down eleven percent last quarter. Gap

0:02:26.720 --> 0:02:30.120
<v Speaker 4>itself actually saw sales jump ten percent and been out

0:02:30.160 --> 0:02:32.760
<v Speaker 4>a republic doing okay for the company, But overall Old

0:02:32.840 --> 0:02:36.000
<v Speaker 4>Navy continues to be a drag on a GAP and

0:02:36.000 --> 0:02:37.959
<v Speaker 4>we're seeing that in the stock price today. Stock is

0:02:38.000 --> 0:02:39.720
<v Speaker 4>also down about two percent year to date.

0:02:39.919 --> 0:02:42.240
<v Speaker 1>I see right now. Yeah, shares of competitor, American Ego

0:02:42.320 --> 0:02:44.799
<v Speaker 1>Outfitters has also just had a double dig drop, so

0:02:44.840 --> 0:02:46.320
<v Speaker 1>I guess it's kind of spreading out into the wise.

0:02:46.400 --> 0:02:49.440
<v Speaker 4>Yeah, the earnings were just not spectacular from these companies.

0:02:49.560 --> 0:02:52.000
<v Speaker 4>All right, Let's move over back to tech net app

0:02:52.400 --> 0:02:56.040
<v Speaker 4>rallying twenty percent. This is the data storage provider reported

0:02:56.080 --> 0:02:59.840
<v Speaker 4>its latest earnings with a strong print showing strong growth.

0:03:00.320 --> 0:03:03.760
<v Speaker 4>The stock jumped after the enterprise data storage company reported

0:03:04.040 --> 0:03:06.320
<v Speaker 4>results that were better not only on the top and

0:03:06.320 --> 0:03:09.000
<v Speaker 4>bottom lines, but also it's outlook and that's really right.

0:03:09.040 --> 0:03:11.480
<v Speaker 4>What we're what we're always focusing on is what are

0:03:11.520 --> 0:03:12.880
<v Speaker 4>you going to do for me in the future? And

0:03:13.040 --> 0:03:13.880
<v Speaker 4>that's also strong.

0:03:14.000 --> 0:03:16.480
<v Speaker 3>It's up forty percent. Is the red Sox one three

0:03:16.480 --> 0:03:20.560
<v Speaker 3>in a row. I mean, I can't I just can't

0:03:20.639 --> 0:03:25.160
<v Speaker 3>keep up. Good morning, San Jose, eleven thousand, seven hundred, Like,

0:03:25.200 --> 0:03:27.880
<v Speaker 3>what's their starting salary? Like three hundred thousand a year.

0:03:28.760 --> 0:03:30.280
<v Speaker 1>It's got to be something crazy.

0:03:30.400 --> 0:03:34.160
<v Speaker 3>It's like it's got George Curry and rob Shift net App.

0:03:34.840 --> 0:03:37.280
<v Speaker 3>I love that you do this, Alexis, I mean the

0:03:37.520 --> 0:03:39.960
<v Speaker 3>net App. I mean the bottom line is this is

0:03:39.960 --> 0:03:42.640
<v Speaker 3>what our guests are talking about. What do you do

0:03:42.720 --> 0:03:45.320
<v Speaker 3>after you own the top seven stocks?

0:03:45.600 --> 0:03:45.880
<v Speaker 1>I mean?

0:03:46.240 --> 0:03:46.440
<v Speaker 3>Right?

0:03:46.480 --> 0:03:47.920
<v Speaker 4>And a lot of people are saying this thing, this

0:03:48.040 --> 0:03:50.040
<v Speaker 4>rally needs to broaden out. But just really quick on

0:03:50.120 --> 0:03:52.840
<v Speaker 4>net app. Earnings up twenty six percent year over year,

0:03:52.960 --> 0:03:56.560
<v Speaker 4>sales up twelve percent, and it expects sales of one

0:03:56.600 --> 0:04:00.000
<v Speaker 4>point eight billion in the current quarter. So enviable position

0:04:00.160 --> 0:04:03.760
<v Speaker 4>there for net app. Do you want one more suck? Autodesk?

0:04:04.200 --> 0:04:04.520
<v Speaker 1>All right?

0:04:04.600 --> 0:04:09.400
<v Speaker 4>Autodesk down seven percent. It's an engineering software maker. It

0:04:09.480 --> 0:04:13.000
<v Speaker 4>agreed to buy maintain X. This is a cash deal

0:04:13.040 --> 0:04:16.640
<v Speaker 4>worth three point six billion dollars. They're going to use

0:04:16.640 --> 0:04:18.640
<v Speaker 4>about one point six billion in cash and then borrow

0:04:18.720 --> 0:04:21.560
<v Speaker 4>the rest. But Wall Street says, look, it's an expensive deal,

0:04:21.800 --> 0:04:24.719
<v Speaker 4>but this is a strong strategic move for Autodesk.

0:04:25.600 --> 0:04:29.640
<v Speaker 2>This stock movers report from Bloomberg Radio. Check back with

0:04:29.720 --> 0:04:32.280
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:32.360 --> 0:04:35.440
<v Speaker 2>making news on Wall Street and for the latest market

0:04:35.480 --> 0:04:39.919
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:40.040 --> 0:04:43.520
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:43.600 --> 0:04:45.080
<v Speaker 2>the Bloomberg Business app.