WEBVTT - Lululemon Lowers Forecast; DocuSign Reports; Merlin Jumps

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

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<v Speaker 2>This Stock Movers report, your roundup of companies making moves

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<v Speaker 2>in 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 on a

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<v Speaker 1>morning where continuing to see some rotation out of the

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<v Speaker 1>AI names, but that doesn't seem to be paying off

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<v Speaker 1>for Lululemon in a big way. This morning, Dan, Good morning.

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<v Speaker 3>Good morning, Nathan. That's right. Lululemon shares are down nearly

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<v Speaker 3>thirteen percent in the pre market under ticker lu LU.

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<v Speaker 3>The leisure company is lowering its annual forecast due to

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<v Speaker 3>softening performance in North America. This company has had a

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<v Speaker 3>hard time and it's not catching a break. Guidance for

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<v Speaker 3>the first quarter was well below expectations as the company

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<v Speaker 3>saw lower store lower traffic in the America's last quarter

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<v Speaker 3>and an even smaller percentage of than normal of those

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<v Speaker 3>who go into the store left with purchases. So it's

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<v Speaker 3>seeing a lot of push back on buying, on buying,

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<v Speaker 3>you know, Lululemon apparel. It's blaming the lower traffic on

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<v Speaker 3>negative commentary and media and social and traditional media and

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<v Speaker 3>social media. And this is a couple of things that

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<v Speaker 3>have happened recently. The company has been seeing fallout from

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<v Speaker 3>poor product launches such as see through leggings. Is also

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<v Speaker 3>faced as a surprised probe from Texas over alleged use

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<v Speaker 3>of Forever Chemicals, and founder Chip Wilson has been publicly

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<v Speaker 3>criticizing the company. Now that's really weighing on the shares

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<v Speaker 3>this morning. The company is looking to address the weakness

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<v Speaker 3>by introducing new products, streamlining operations, and improving marketing, and

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<v Speaker 3>that means there are going to be a lot of

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<v Speaker 3>challenges for the incoming CEO, Heid O'Neil, who starts the

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<v Speaker 3>job in September. Just to give you context, a year ago,

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<v Speaker 3>those shares were over three hundred dollars each. Right now

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<v Speaker 3>in pre market they're one hundred and nine. So this

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<v Speaker 3>has been on a down trend.

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<v Speaker 1>Sure has and continuing with the downward trend this morning

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<v Speaker 1>is doc you sign after earnings?

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<v Speaker 3>Yeah, that's down four percent in pre market under ticker DOCU.

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<v Speaker 3>First quarter bottom line top estimates, but the marginal revenue

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<v Speaker 3>beat was smaller than its typical results. So the general

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<v Speaker 3>takeaway from the earnings was just not strong enough. The

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<v Speaker 3>bottom line was boosted by the largest quarterly stock repurchase

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<v Speaker 3>in history, so they bought back some shares that boosted

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<v Speaker 3>the EPs results that were a stronger beat. The current

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<v Speaker 3>quarter forecast was about in line with Wall Street's expectation,

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<v Speaker 3>and the company very marginally lifted the bottom end of

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<v Speaker 3>its full year sales guidance. This is just not enough

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<v Speaker 3>to impress by to impress buyers. This morning, off the

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<v Speaker 3>tail of this, the company saw price tarkets raised at

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<v Speaker 3>both Morgan Stanley and City. But as we said, you know,

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<v Speaker 3>shares are under pressure this morning, and they've been under

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<v Speaker 3>pressure all year, down twenty five percent.

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<v Speaker 1>All right, Well, let's talk about a stock that's actually

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<v Speaker 1>doing well this morning, and I mean well, doesn't even

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<v Speaker 1>begin to scratch the surface here. What is going on

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<v Speaker 1>with Merlin's surge this morning.

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<v Speaker 3>So Merlin ticker MRLN is up nearly thirty percent in

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<v Speaker 3>the pre market. And this is the first time I've

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<v Speaker 3>seen this much volume on this name. It really stood

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<v Speaker 3>out this morning. What it is is it's an aerospace

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<v Speaker 3>defense company and it announced the successful completion of the

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<v Speaker 3>critical design review for its C one thirty j autonomous program. Basically,

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<v Speaker 3>that's a project to integrate what they call the Merlin

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<v Speaker 3>prod pilot into a C one thirty, which is a

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<v Speaker 3>full sized four engine airplane called the Hercules. The idea

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<v Speaker 3>is to eventually convert full sized aircrafts into planes that

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<v Speaker 3>can fly atonas autonomously. So taking in kind of a

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<v Speaker 3>normal military aircraft and letting it fly without anyone in

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<v Speaker 3>it is kind of the end line, and this is

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<v Speaker 3>catching a lot of people's attention this morning. The company

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<v Speaker 3>is pre revenue, it hasn't booked any sales yet, but

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<v Speaker 3>we are watching defense names closely. Trump is trying to

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<v Speaker 3>pass the one point five trillion dollars defense budget, so

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<v Speaker 3>a lot of potential spending, and drones have been a

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<v Speaker 3>huge focus on that with the rush of Ukraine War

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<v Speaker 3>showing the large shift into unmanned vehicles. So definitely one

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<v Speaker 3>that's getting the market's attention today.

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<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

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