1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,680 --> 00:00:18,720 Speaker 3: Let's take a look at how some of the stocks 5 00:00:19,120 --> 00:00:21,640 Speaker 3: on the move today A Paul Sweny alongside Normal liv 6 00:00:21,680 --> 00:00:23,840 Speaker 3: We're joined by Billy Lipscholes. Billy, what you got first today? 7 00:00:23,880 --> 00:00:26,760 Speaker 1: Yeah, I want to start with Marvel Technology ticker mr 8 00:00:27,040 --> 00:00:29,680 Speaker 1: VL right now at more than seven percent, trading at 9 00:00:29,680 --> 00:00:33,479 Speaker 1: the highest level guys since late February. This comes after 10 00:00:33,920 --> 00:00:37,479 Speaker 1: some pretty strong guidance from the company CEO kind of 11 00:00:37,720 --> 00:00:40,080 Speaker 1: laying down, laying to bed some of the investor concerns 12 00:00:40,320 --> 00:00:43,680 Speaker 1: about AI and AI consumption. They also announced plans to 13 00:00:43,680 --> 00:00:46,640 Speaker 1: acquire startup Celestial AI for about three point twenty five 14 00:00:46,760 --> 00:00:49,720 Speaker 1: billion dollars. Looking through some of the analyst reaction, basically 15 00:00:49,760 --> 00:00:52,440 Speaker 1: saying at the end of the day, the management team 16 00:00:52,560 --> 00:00:55,320 Speaker 1: was very confident not only for next year, but also 17 00:00:55,360 --> 00:00:58,840 Speaker 1: looking beyond twenty twenty eight, looking at that Celestial aideal, 18 00:00:59,160 --> 00:01:02,200 Speaker 1: according to Jeff, saying that that helps provide a CPO story. 19 00:01:02,400 --> 00:01:06,240 Speaker 1: Jury's still out, but basically, if they aren't giving revenue 20 00:01:06,319 --> 00:01:09,360 Speaker 1: ramping from that deal until Q four of twenty twenty 21 00:01:09,400 --> 00:01:12,000 Speaker 1: eight fiscal year has some time to work. 22 00:01:12,640 --> 00:01:15,560 Speaker 4: Seeing shares of Marvel down about ten percent so far 23 00:01:15,640 --> 00:01:17,920 Speaker 4: this year, You're also got your eyes on get Lab. 24 00:01:18,160 --> 00:01:21,840 Speaker 1: Yeah, get Lab ticker GTLB talk about being down right now, 25 00:01:21,959 --> 00:01:25,880 Speaker 1: down more than sixteen percent. Stocks trading at the lowest 26 00:01:25,959 --> 00:01:29,360 Speaker 1: level since June twenty twenty three on a trailing twelve 27 00:01:29,400 --> 00:01:33,560 Speaker 1: month average, down about forty three percent. Today's weakness comes 28 00:01:33,600 --> 00:01:36,840 Speaker 1: after earnings. Really not a bad report all things considered, 29 00:01:36,880 --> 00:01:38,880 Speaker 1: but when you look under the surface and kind of 30 00:01:38,880 --> 00:01:42,200 Speaker 1: calling out some of the reaction from Bloomberg Intelligence's Sunil 31 00:01:42,400 --> 00:01:47,480 Speaker 1: rag Goopaul saying that basically concerns around AI headwins for 32 00:01:47,520 --> 00:01:50,600 Speaker 1: the company four it's seat based revenue models continuing to 33 00:01:50,640 --> 00:01:54,760 Speaker 1: show up overall consumer growth below consensus. Reading through some 34 00:01:54,840 --> 00:01:57,600 Speaker 1: of the trading notes that I get in the morning, 35 00:01:58,040 --> 00:02:00,520 Speaker 1: kind of not much going on in this market. You 36 00:02:00,600 --> 00:02:02,800 Speaker 1: really want to see growth. You want to see kind 37 00:02:02,800 --> 00:02:05,120 Speaker 1: of an ability to show that not only are you 38 00:02:05,160 --> 00:02:07,680 Speaker 1: benefiting from AI at a minimum, that you're not potentially 39 00:02:07,680 --> 00:02:10,079 Speaker 1: at risk of AI. Get Lab not showing up in 40 00:02:10,080 --> 00:02:10,680 Speaker 1: either regard. 41 00:02:11,080 --> 00:02:14,480 Speaker 3: I had no idea what get lab does thankfully Bloomberg 42 00:02:14,520 --> 00:02:18,120 Speaker 3: has the dees function description. You're an application software company, 43 00:02:18,200 --> 00:02:19,880 Speaker 3: so trying to get the AI wave there. 44 00:02:19,960 --> 00:02:22,560 Speaker 4: Yeah, okay, yeah. 45 00:02:22,000 --> 00:02:24,840 Speaker 3: What else we have? We got another one for us, Microchip. 46 00:02:24,880 --> 00:02:28,760 Speaker 1: We'll cap off with Microchip Technology, semiconductor manufacturer. I'll get 47 00:02:28,760 --> 00:02:32,480 Speaker 1: that off the top. Take your MCCHP, a thirty three 48 00:02:32,480 --> 00:02:34,959 Speaker 1: and a half billion dollar company. Right now, it's trading 49 00:02:35,040 --> 00:02:39,440 Speaker 1: up almost ten percent, best days since mid August. This 50 00:02:39,520 --> 00:02:43,480 Speaker 1: came again. We're still in the thick of tech earning season, 51 00:02:43,680 --> 00:02:46,720 Speaker 1: so the company beat expectations on the top and bottom 52 00:02:46,760 --> 00:02:49,240 Speaker 1: line again, maybe getting a bit of a benefit from 53 00:02:49,240 --> 00:02:51,160 Speaker 1: those Marvel numbers. But when you look at the analyst 54 00:02:51,240 --> 00:02:55,560 Speaker 1: reactions basically saying that strong booking, showing up management talking 55 00:02:55,639 --> 00:02:58,200 Speaker 1: up its backlog, it does seem like things are going 56 00:02:58,280 --> 00:03:00,280 Speaker 1: quite well. Keeping in mind that the company he did 57 00:03:00,280 --> 00:03:04,280 Speaker 1: pre announce booking strengths back a little while ago, so 58 00:03:04,360 --> 00:03:06,720 Speaker 1: really looking at some of the management commentary on the call, 59 00:03:06,880 --> 00:03:11,440 Speaker 1: does seem optimistic again. Ticker MCCHP on Microchip up more 60 00:03:11,480 --> 00:03:12,280 Speaker 1: than eight percent. 61 00:03:12,520 --> 00:03:14,760 Speaker 3: I told us about the new issue market. Where are 62 00:03:14,800 --> 00:03:17,160 Speaker 3: we because we had a flurry right after Labor Day 63 00:03:17,840 --> 00:03:20,040 Speaker 3: and we're still seeing stuff or they've kind of shut 64 00:03:20,080 --> 00:03:21,200 Speaker 3: down for the well. 65 00:03:21,200 --> 00:03:24,160 Speaker 1: We reported yesterday that a Medline, which could raise five 66 00:03:24,200 --> 00:03:26,520 Speaker 1: billion dollars, would be the biggest deal of the year, 67 00:03:26,560 --> 00:03:30,520 Speaker 1: expected to start that formal marketing process early next week. 68 00:03:30,600 --> 00:03:34,000 Speaker 1: That's a Carlisle, Blackstone, h and f asset in the 69 00:03:34,000 --> 00:03:37,360 Speaker 1: healthcare space gonna be a big one. So that'll likely 70 00:03:37,440 --> 00:03:41,080 Speaker 1: make some bankers years in an odd deal. You know, 71 00:03:41,200 --> 00:03:42,640 Speaker 1: really don't see these deals at the end of the 72 00:03:42,680 --> 00:03:43,480 Speaker 1: tail end of the year, and. 73 00:03:43,480 --> 00:03:44,880 Speaker 4: A lot of action we've really been seeing in the 74 00:03:44,920 --> 00:03:46,120 Speaker 4: healthcare space more broadly. 75 00:03:46,240 --> 00:03:48,600 Speaker 1: So yeah, it kind of you when you talk to 76 00:03:48,640 --> 00:03:51,200 Speaker 1: investors in bankers, they're hoping that this can kind of 77 00:03:51,200 --> 00:03:53,760 Speaker 1: open up private equity. There still is not the demand 78 00:03:53,800 --> 00:03:55,880 Speaker 1: that we're seeing for biotech in particular, which is such 79 00:03:55,920 --> 00:03:58,680 Speaker 1: a big deal for the new issue market. But Medline 80 00:03:58,680 --> 00:03:59,680 Speaker 1: will be a good test. 81 00:04:00,200 --> 00:04:02,280 Speaker 3: If it's owned by these big private equity companies they've 82 00:04:02,280 --> 00:04:05,000 Speaker 3: had an issue like this is how private acty was 83 00:04:05,040 --> 00:04:07,320 Speaker 3: first explained to me when I was a kid. It's 84 00:04:07,360 --> 00:04:10,320 Speaker 3: easy to raise the money, it's really easy to deploy 85 00:04:10,360 --> 00:04:13,920 Speaker 3: the money. It's really hard to monetize your investments. That's 86 00:04:13,960 --> 00:04:17,000 Speaker 3: where the real skill comes in. Where's that's been a 87 00:04:17,080 --> 00:04:18,080 Speaker 3: challenge for private acuity. 88 00:04:18,120 --> 00:04:20,200 Speaker 1: It's been a challenge for private equity. It's been a challenge, 89 00:04:20,200 --> 00:04:22,760 Speaker 1: particularly in the US. I go back to the middle 90 00:04:22,800 --> 00:04:26,440 Speaker 1: of this year's sale point, a tom Bravo asset pushed 91 00:04:26,480 --> 00:04:29,400 Speaker 1: on price. According to investors, they priced above range. They're 92 00:04:29,400 --> 00:04:33,559 Speaker 1: down seventeen percent. Wow, NQ Global down twenty eight percent. 93 00:04:33,640 --> 00:04:36,040 Speaker 1: So when you look at the pree deals performance, you're 94 00:04:36,040 --> 00:04:39,520 Speaker 1: buying IPOs for alpha generation, you want to outperform on 95 00:04:39,560 --> 00:04:41,960 Speaker 1: an average basis the entire year here in the US 96 00:04:42,040 --> 00:04:43,720 Speaker 1: only up seven percent, so you're trailing the S and 97 00:04:43,720 --> 00:04:46,279 Speaker 1: P five hundred. You've got private equity leverage to sell 98 00:04:46,360 --> 00:04:48,200 Speaker 1: down overhang. So Medline is going to be a good 99 00:04:48,200 --> 00:04:51,000 Speaker 1: test of kind of deal execution, just given that it's 100 00:04:51,000 --> 00:04:52,279 Speaker 1: been in the hopper for some time. 101 00:04:52,320 --> 00:04:54,600 Speaker 4: What are you hearing in terms of expectations for next year? 102 00:04:56,200 --> 00:05:00,880 Speaker 1: Head yet, opium raised, rains eternal. I mean bankers like 103 00:05:01,360 --> 00:05:04,880 Speaker 1: bankers are candid right, expectations we're high for twenty twenty five, 104 00:05:05,080 --> 00:05:07,359 Speaker 1: it was a fine year. Expectations are that we should 105 00:05:07,360 --> 00:05:09,200 Speaker 1: at least match where we're at in twenty twenty six. 106 00:05:09,279 --> 00:05:12,360 Speaker 1: The big question is do private equity sponsors show up, 107 00:05:12,400 --> 00:05:14,360 Speaker 1: are they willing to get these deals out of the door? 108 00:05:14,640 --> 00:05:17,880 Speaker 1: And if that doesn't happen, is there enough tech companies 109 00:05:18,800 --> 00:05:20,680 Speaker 1: that can kind of carry the baton. There's a lot 110 00:05:20,720 --> 00:05:22,800 Speaker 1: of debate around who would go public and how to 111 00:05:22,800 --> 00:05:23,880 Speaker 1: fil some of that volume. 112 00:05:24,120 --> 00:05:26,760 Speaker 3: Yeah, I would think, and I've been proven wrong that 113 00:05:26,839 --> 00:05:28,279 Speaker 3: if I'm private ECUA, I actually want to get these 114 00:05:28,279 --> 00:05:31,039 Speaker 3: things out the door. I need to monetize these things 115 00:05:31,080 --> 00:05:33,320 Speaker 3: because I need to go out return that capital to 116 00:05:33,640 --> 00:05:35,560 Speaker 3: my ALP so I can raise more capital and get 117 00:05:35,640 --> 00:05:39,239 Speaker 3: more management fees. But I know they're just just loath 118 00:05:39,400 --> 00:05:42,400 Speaker 3: to do a down round like this IPO something at 119 00:05:42,440 --> 00:05:43,520 Speaker 3: below where they're carrying. 120 00:05:43,680 --> 00:05:45,560 Speaker 1: Well, that's the tough part, right. So if you are 121 00:05:45,839 --> 00:05:47,320 Speaker 1: in the market or want to be in the market 122 00:05:47,360 --> 00:05:49,240 Speaker 1: for another fund, well, people want to see where your 123 00:05:49,279 --> 00:05:51,760 Speaker 1: IR is. If I take you public at a discount 124 00:05:51,800 --> 00:05:53,560 Speaker 1: to where we bought it, I'm not really delivering on 125 00:05:53,600 --> 00:05:54,200 Speaker 1: those metroles. 126 00:05:55,400 --> 00:05:59,400 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 127 00:05:59,480 --> 00:06:02,799 Speaker 2: us throughout for the latest roundup of companies making news 128 00:06:02,839 --> 00:06:06,120 Speaker 2: on Wall Street and for the latest market moving headlines. 129 00:06:06,360 --> 00:06:10,359 Speaker 2: Listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg 130 00:06:10,400 --> 00:06:13,479 Speaker 2: dot com, and on Applecarplay and Android Auto with the 131 00:06:13,520 --> 00:06:14,880 Speaker 2: Bloomberg Business App.