WEBVTT - Oracle Falls After Hours, Super Micro Plunges, Cracker Barrel Jumps

0:00:02.520 --> 0:00:07.000
<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.

0:00:16.600 --> 0:00:18.880
<v Speaker 3>I'm Tim Stenevec along with Carol Master. Let's take a

0:00:18.880 --> 0:00:21.239
<v Speaker 3>look some stocks on the move today. We are joined

0:00:21.239 --> 0:00:24.680
<v Speaker 3>by Bloomberg News Equities reporter Avalon Purnell. We're not done with

0:00:24.720 --> 0:00:25.360
<v Speaker 3>earning season.

0:00:25.560 --> 0:00:28.080
<v Speaker 4>We are not. I mean, we had Oracle that's ticker

0:00:28.160 --> 0:00:31.920
<v Speaker 4>o RCL currently sliding about six percent in post market

0:00:31.960 --> 0:00:33.479
<v Speaker 4>trading after their earnings.

0:00:33.520 --> 0:00:35.160
<v Speaker 3>All right, there's your tone for tomorrow, Carrol.

0:00:35.280 --> 0:00:37.920
<v Speaker 1>Yeah, I mean it's been bouncing around here in the aftermarket,

0:00:37.960 --> 0:00:40.560
<v Speaker 1>so it's taken another leg down exactly.

0:00:40.600 --> 0:00:43.120
<v Speaker 4>I mean, to be honest, looking at their fourth quarter results,

0:00:43.159 --> 0:00:47.760
<v Speaker 4>nothing really sticks out necessarily, but they only slightly topped expectations.

0:00:47.760 --> 0:00:49.680
<v Speaker 4>And for a lot of these companies that are really

0:00:49.760 --> 0:00:53.360
<v Speaker 4>banking on the AI surge to help them, it really

0:00:53.440 --> 0:00:55.600
<v Speaker 4>has been something that investors have been keeping an eye on.

0:00:55.680 --> 0:00:58.520
<v Speaker 4>Vital Knowledge writing that while this is an okay release,

0:00:58.800 --> 0:01:01.440
<v Speaker 4>the company is still facing a period of heavy cash

0:01:01.480 --> 0:01:05.080
<v Speaker 4>outflows as it builds the necessary infrastructure to fulfill its

0:01:05.080 --> 0:01:07.760
<v Speaker 4>backlog and that's something that they're calling out to as

0:01:07.920 --> 0:01:09.479
<v Speaker 4>maybe a reason for why it's down.

0:01:09.600 --> 0:01:11.640
<v Speaker 1>And it says it doesn't expect to issue more debt

0:01:12.000 --> 0:01:14.360
<v Speaker 1>next year or no in this year excuse me, calendar

0:01:14.400 --> 0:01:18.720
<v Speaker 1>twenty twenty six. So that's yeah, okay, it's the story

0:01:18.760 --> 0:01:20.160
<v Speaker 1>of our lives right now. Right in terms of the

0:01:20.200 --> 0:01:23.760
<v Speaker 1>AI spend, I know, Anna rag Rana telling us like

0:01:23.920 --> 0:01:27.760
<v Speaker 1>just keeping a watch on the call and whether or

0:01:27.760 --> 0:01:29.520
<v Speaker 1>not it's able to is it meet demand? I think

0:01:29.520 --> 0:01:31.640
<v Speaker 1>he was talking about or having access to what they need.

0:01:31.720 --> 0:01:33.640
<v Speaker 1>So some things for us to keep an eye on,

0:01:34.000 --> 0:01:36.560
<v Speaker 1>all right. Super Micro tim talked about this name a

0:01:36.560 --> 0:01:37.440
<v Speaker 1>lot today.

0:01:37.480 --> 0:01:41.160
<v Speaker 4>Yes, as ticker SMCI. Very similar story, to be honest.

0:01:41.200 --> 0:01:44.200
<v Speaker 4>It's sank twenty eight percent and its worst one day

0:01:44.280 --> 0:01:47.360
<v Speaker 4>drop since March, and that's after the computer hardware maker

0:01:47.520 --> 0:01:50.200
<v Speaker 4>said that it's planning seven billion dollars in equity and

0:01:50.200 --> 0:01:54.000
<v Speaker 4>equity linked financing two fun component purchases to meet demand

0:01:54.000 --> 0:01:56.320
<v Speaker 4>for its AI servers. Very similar to the deal that

0:01:56.320 --> 0:02:00.320
<v Speaker 4>we saw from Google last week. However, unlike Google, this

0:02:00.440 --> 0:02:03.920
<v Speaker 4>has a pretty large percentage of super Micro's market cap

0:02:04.080 --> 0:02:05.880
<v Speaker 4>and the street is very split, to say the least

0:02:05.880 --> 0:02:08.359
<v Speaker 4>about this Bernstein writing that this is by far the

0:02:08.440 --> 0:02:12.000
<v Speaker 4>highest equity raise in company history and implies a whopping

0:02:12.040 --> 0:02:15.519
<v Speaker 4>twenty seven percent dilution, whereas Wedbush is saying that they're

0:02:15.600 --> 0:02:17.960
<v Speaker 4>viewing this as more of like the order momentum and

0:02:18.000 --> 0:02:20.080
<v Speaker 4>that this could actually be a good situation.

0:02:19.919 --> 0:02:21.560
<v Speaker 1>Nound twenty eight percent today.

0:02:22.160 --> 0:02:24.480
<v Speaker 3>I'm just looking at the different analysts and on the

0:02:24.760 --> 0:02:27.440
<v Speaker 3>an R function on the Bloomberg terminal.

0:02:28.400 --> 0:02:31.120
<v Speaker 1>Yeah, interesting, Okay, are there how many buys?

0:02:31.520 --> 0:02:32.200
<v Speaker 4>I just lost it?

0:02:32.280 --> 0:02:32.600
<v Speaker 3>Sorry?

0:02:32.919 --> 0:02:35.880
<v Speaker 1>Uh, six bys? So twenty seven percent of the analysts

0:02:35.919 --> 0:02:39.480
<v Speaker 1>who cover it have buys, fifty four percent have holes,

0:02:39.560 --> 0:02:43.080
<v Speaker 1>and then there's four cells on this name eighteen percent

0:02:43.120 --> 0:02:43.959
<v Speaker 1>of the analysts who cover it.

0:02:45.200 --> 0:02:49.400
<v Speaker 3>Let's matter. I'm just looking at the yep, I knew it.

0:02:49.400 --> 0:02:51.440
<v Speaker 3>It's Dan ives at Wedbush who covers it. So of

0:02:51.440 --> 0:02:53.359
<v Speaker 3>course he's going to be bullish on it because he's

0:02:53.480 --> 0:02:56.680
<v Speaker 3>like a permeable. He has an outperform on the stock.

0:02:57.320 --> 0:02:59.600
<v Speaker 4>But what was his comment, Well, he was saying that

0:02:59.600 --> 0:03:02.240
<v Speaker 4>the order momentum is positive and you're going to have

0:03:02.240 --> 0:03:04.320
<v Speaker 4>to wait to see later on about what the margin

0:03:04.360 --> 0:03:05.480
<v Speaker 4>will look like for the business.

0:03:05.560 --> 0:03:09.360
<v Speaker 1>All right, yeah, okay, so let's go to something low

0:03:09.440 --> 0:03:11.360
<v Speaker 1>tech cracker barrel.

0:03:11.600 --> 0:03:14.919
<v Speaker 4>Yes, one bullish signal within the market. That's ticker CBRL

0:03:15.040 --> 0:03:17.440
<v Speaker 4>jumping twenty three percent to not just the best day

0:03:17.440 --> 0:03:20.320
<v Speaker 4>since twenty twenty, and that's after the restaurant chain boosted

0:03:20.320 --> 0:03:22.080
<v Speaker 4>its full year outlook on the back of a better

0:03:22.080 --> 0:03:25.160
<v Speaker 4>than expected third quarter. Benchmark writing that the results really

0:03:25.160 --> 0:03:28.560
<v Speaker 4>showed improvements, especially for the average check as they discounted

0:03:28.680 --> 0:03:31.080
<v Speaker 4>less and customers still we're coming back for plates of

0:03:31.240 --> 0:03:34.440
<v Speaker 4>food and still worth noting though, that the short interest

0:03:34.480 --> 0:03:37.760
<v Speaker 4>on this company is really high, about twenty seven percent

0:03:37.800 --> 0:03:38.280
<v Speaker 4>of float.

0:03:40.040 --> 0:03:44.080
<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

0:03:44.160 --> 0:03:46.720
<v Speaker 2>us throughout the day for the latest roundup of companies

0:03:46.800 --> 0:03:49.920
<v Speaker 2>making news on Wall Street and for the latest market

0:03:49.920 --> 0:03:54.400
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:03:54.480 --> 0:03:58.000
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:03:58.040 --> 0:03:59.560
<v Speaker 2>the Bloomberg Business app.