Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market. Harnessing the power of Bloomberg data.
Speaker 3: Let's take a look at some stocks on the move today.
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Titel on another
Speaker 3: morning of retail earnings. We're getting results from Dollar General
Speaker 3: this morning, and it looks like low end retail is
Speaker 3: continuing to outperform. Valerie, good morning.
Speaker 4: Yeah, it seems like a theme.
Speaker 1: I know everyone was worried about this K shaped economy,
Speaker 1: but it does seem like these discount retailers are doing
Speaker 1: quite well. Dollar General shares are up just shy of
Speaker 1: three percent in the pre market. They beat on their
Speaker 1: third quarter EPs. It came in at one dollar and
Speaker 1: twenty eight cents. The estimate was for ninety four cents.
Speaker 1: They also raised their full year twenty twenty five EPs
Speaker 1: forecast and boosted their sales at guidance as well.
Speaker 4: So really interesting to see if.
Speaker 1: This chimes with what we've heard from other discount retailers
Speaker 1: of late, who seem to say that even though foot
Speaker 1: traffic is down in their stores, people are spending more
Speaker 1: once they get in the doors. That was the theme
Speaker 1: of other discount retailers this week, and Dollar General seems
Speaker 1: to be capturing that positivity as well, with shares of
Speaker 1: just shy of three percent after this earnings release.
Speaker 3: But it has been a kind of a mixed picture
Speaker 3: when it comes to broader retail because we're getting sort
Speaker 3: of a disappointed reaction to Costco's results.
Speaker 1: Yeah, well, these are the sales figures for the month
Speaker 1: of November for Costco, so kind of a sneak peek.
Speaker 1: We get their full earnings later in December, but Costco
Speaker 1: shares are down one percent. The November comparable sales came
Speaker 1: in below expectations. It really was the North of America
Speaker 1: sales that were pretty soft versus Costco's more international business
Speaker 1: which held up pretty well. And again, you know, we're
Speaker 1: really focused on the consumer headed into the holiday season
Speaker 1: and how is the consumer feeling, how are they going
Speaker 1: to spend in the last.
Speaker 4: Few weeks of the year.
Speaker 1: Costco painting quite a week picture for the month of November,
Speaker 1: and we've.
Speaker 3: Got big tech earnings as well. Salesforce looks like it
Speaker 3: came in pretty positive.
Speaker 1: Yeah, Salesforce at least, the stock is reacting positively. It's
Speaker 1: up over two percent in the pre market. This is
Speaker 1: all back on some positivity around adoption of their new
Speaker 1: AI tools looking better than expected. Now Salesforce is the
Speaker 1: largest maker of CRM software. They've had a lot to
Speaker 1: convince investors that they can compete with these new AI,
Speaker 1: new AI incumbents that are coming into the market and
Speaker 1: then being in a cumbent, you know, they really need
Speaker 1: to show investors that they can use these AI tools
Speaker 1: to keep their customers.
Speaker 4: They gave a strong revenue outlook.
Speaker 1: For the current quarter and they said AI product is
Speaker 1: gaining traction. Their key product is called agent Force. It
Speaker 1: is still seeing red hot growth. In the previous quarter,
Speaker 1: it saw a growth rate of over three hundred percent
Speaker 1: year and year. So incumbent software makers are still doing
Speaker 1: okay in this AI race.
Speaker 3: It is a much different story though this morning for Snowflake.
Speaker 3: That stock is getting pounded this morning.
Speaker 1: Yeah, down over eight percent for Snowflake. This is the
Speaker 1: cloud based data platform. They gave it disappointing outlook for
Speaker 1: operating margins. A bit of a different picture here where
Speaker 1: it's raising concerns about the profitability when it comes to
Speaker 1: Ai based tools in.
Speaker 4: The cloud sphere.
Speaker 1: Snowflake makes software that helps corporates organize and analyze data
Speaker 1: in the cloud. The one positivity though, even though they
Speaker 1: were disappointed on this operating margin outlook, is that they
Speaker 1: did announce a partnership with Anthropic alongside a two hundred
Speaker 1: million dollar investments, so they want to put claud Ai
Speaker 1: models available on their Snowflake platform in their software services.
Speaker 1: So a bit of positivity there, but Snowflake stocks really
Speaker 1: reacting negatively to.
Speaker 4: The disappointing outlook for.
Speaker 2: Operating marginmover's report from Bloomberg Radio. Check back with us
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