Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This Stock Movers report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Nathan Hager, joined by Bloomberg's Dan Curtis on a
Speaker 1: morning where continuing to see some rotation out of the
Speaker 1: AI names, but that doesn't seem to be paying off
Speaker 1: for Lululemon in a big way. This morning, Dan, Good morning.
Speaker 3: Good morning, Nathan. That's right. Lululemon shares are down nearly
Speaker 3: thirteen percent in the pre market under ticker lu LU.
Speaker 3: The leisure company is lowering its annual forecast due to
Speaker 3: softening performance in North America. This company has had a
Speaker 3: hard time and it's not catching a break. Guidance for
Speaker 3: the first quarter was well below expectations as the company
Speaker 3: saw lower store lower traffic in the America's last quarter
Speaker 3: and an even smaller percentage of than normal of those
Speaker 3: who go into the store left with purchases. So it's
Speaker 3: seeing a lot of push back on buying, on buying,
Speaker 3: you know, Lululemon apparel. It's blaming the lower traffic on
Speaker 3: negative commentary and media and social and traditional media and
Speaker 3: social media. And this is a couple of things that
Speaker 3: have happened recently. The company has been seeing fallout from
Speaker 3: poor product launches such as see through leggings. Is also
Speaker 3: faced as a surprised probe from Texas over alleged use
Speaker 3: of Forever Chemicals, and founder Chip Wilson has been publicly
Speaker 3: criticizing the company. Now that's really weighing on the shares
Speaker 3: this morning. The company is looking to address the weakness
Speaker 3: by introducing new products, streamlining operations, and improving marketing, and
Speaker 3: that means there are going to be a lot of
Speaker 3: challenges for the incoming CEO, Heid O'Neil, who starts the
Speaker 3: job in September. Just to give you context, a year ago,
Speaker 3: those shares were over three hundred dollars each. Right now
Speaker 3: in pre market they're one hundred and nine. So this
Speaker 3: has been on a down trend.
Speaker 1: Sure has and continuing with the downward trend this morning
Speaker 1: is doc you sign after earnings?
Speaker 3: Yeah, that's down four percent in pre market under ticker DOCU.
Speaker 3: First quarter bottom line top estimates, but the marginal revenue
Speaker 3: beat was smaller than its typical results. So the general
Speaker 3: takeaway from the earnings was just not strong enough. The
Speaker 3: bottom line was boosted by the largest quarterly stock repurchase
Speaker 3: in history, so they bought back some shares that boosted
Speaker 3: the EPs results that were a stronger beat. The current
Speaker 3: quarter forecast was about in line with Wall Street's expectation,
Speaker 3: and the company very marginally lifted the bottom end of
Speaker 3: its full year sales guidance. This is just not enough
Speaker 3: to impress by to impress buyers. This morning, off the
Speaker 3: tail of this, the company saw price tarkets raised at
Speaker 3: both Morgan Stanley and City. But as we said, you know,
Speaker 3: shares are under pressure this morning, and they've been under
Speaker 3: pressure all year, down twenty five percent.
Speaker 1: All right, Well, let's talk about a stock that's actually
Speaker 1: doing well this morning, and I mean well, doesn't even
Speaker 1: begin to scratch the surface here. What is going on
Speaker 1: with Merlin's surge this morning.
Speaker 3: So Merlin ticker MRLN is up nearly thirty percent in
Speaker 3: the pre market. And this is the first time I've
Speaker 3: seen this much volume on this name. It really stood
Speaker 3: out this morning. What it is is it's an aerospace
Speaker 3: defense company and it announced the successful completion of the
Speaker 3: critical design review for its C one thirty j autonomous program. Basically,
Speaker 3: that's a project to integrate what they call the Merlin
Speaker 3: prod pilot into a C one thirty, which is a
Speaker 3: full sized four engine airplane called the Hercules. The idea
Speaker 3: is to eventually convert full sized aircrafts into planes that
Speaker 3: can fly atonas autonomously. So taking in kind of a
Speaker 3: normal military aircraft and letting it fly without anyone in
Speaker 3: it is kind of the end line, and this is
Speaker 3: catching a lot of people's attention this morning. The company
Speaker 3: is pre revenue, it hasn't booked any sales yet, but
Speaker 3: we are watching defense names closely. Trump is trying to
Speaker 3: pass the one point five trillion dollars defense budget, so
Speaker 3: a lot of potential spending, and drones have been a
Speaker 3: huge focus on that with the rush of Ukraine War
Speaker 3: showing the large shift into unmanned vehicles. So definitely one
Speaker 3: that's getting the market's attention today.
Speaker 2: This stock mover's report from Bloomberg Radio. Check back with
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