Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at how some of the stocks
Speaker 3: on the move today A Paul Sweny alongside Normal liv
Speaker 3: We're joined by Billy Lipscholes. Billy, what you got first today?
Speaker 1: Yeah, I want to start with Marvel Technology ticker mr
Speaker 1: VL right now at more than seven percent, trading at
Speaker 1: the highest level guys since late February. This comes after
Speaker 1: some pretty strong guidance from the company CEO kind of
Speaker 1: laying down, laying to bed some of the investor concerns
Speaker 1: about AI and AI consumption. They also announced plans to
Speaker 1: acquire startup Celestial AI for about three point twenty five
Speaker 1: billion dollars. Looking through some of the analyst reaction, basically
Speaker 1: saying at the end of the day, the management team
Speaker 1: was very confident not only for next year, but also
Speaker 1: looking beyond twenty twenty eight, looking at that Celestial aideal,
Speaker 1: according to Jeff, saying that that helps provide a CPO story.
Speaker 1: Jury's still out, but basically, if they aren't giving revenue
Speaker 1: ramping from that deal until Q four of twenty twenty
Speaker 1: eight fiscal year has some time to work.
Speaker 4: Seeing shares of Marvel down about ten percent so far
Speaker 4: this year, You're also got your eyes on get Lab.
Speaker 1: Yeah, get Lab ticker GTLB talk about being down right now,
Speaker 1: down more than sixteen percent. Stocks trading at the lowest
Speaker 1: level since June twenty twenty three on a trailing twelve
Speaker 1: month average, down about forty three percent. Today's weakness comes
Speaker 1: after earnings. Really not a bad report all things considered,
Speaker 1: but when you look under the surface and kind of
Speaker 1: calling out some of the reaction from Bloomberg Intelligence's Sunil
Speaker 1: rag Goopaul saying that basically concerns around AI headwins for
Speaker 1: the company four it's seat based revenue models continuing to
Speaker 1: show up overall consumer growth below consensus. Reading through some
Speaker 1: of the trading notes that I get in the morning,
Speaker 1: kind of not much going on in this market. You
Speaker 1: really want to see growth. You want to see kind
Speaker 1: of an ability to show that not only are you
Speaker 1: benefiting from AI at a minimum, that you're not potentially
Speaker 1: at risk of AI. Get Lab not showing up in
Speaker 1: either regard.
Speaker 3: I had no idea what get lab does thankfully Bloomberg
Speaker 3: has the dees function description. You're an application software company,
Speaker 3: so trying to get the AI wave there.
Speaker 4: Yeah, okay, yeah.
Speaker 3: What else we have? We got another one for us, Microchip.
Speaker 1: We'll cap off with Microchip Technology, semiconductor manufacturer. I'll get
Speaker 1: that off the top. Take your MCCHP, a thirty three
Speaker 1: and a half billion dollar company. Right now, it's trading
Speaker 1: up almost ten percent, best days since mid August. This
Speaker 1: came again. We're still in the thick of tech earning season,
Speaker 1: so the company beat expectations on the top and bottom
Speaker 1: line again, maybe getting a bit of a benefit from
Speaker 1: those Marvel numbers. But when you look at the analyst
Speaker 1: reactions basically saying that strong booking, showing up management talking
Speaker 1: up its backlog, it does seem like things are going
Speaker 1: quite well. Keeping in mind that the company he did
Speaker 1: pre announce booking strengths back a little while ago, so
Speaker 1: really looking at some of the management commentary on the call,
Speaker 1: does seem optimistic again. Ticker MCCHP on Microchip up more
Speaker 1: than eight percent.
Speaker 3: I told us about the new issue market. Where are
Speaker 3: we because we had a flurry right after Labor Day
Speaker 3: and we're still seeing stuff or they've kind of shut
Speaker 3: down for the well.
Speaker 1: We reported yesterday that a Medline, which could raise five
Speaker 1: billion dollars, would be the biggest deal of the year,
Speaker 1: expected to start that formal marketing process early next week.
Speaker 1: That's a Carlisle, Blackstone, h and f asset in the
Speaker 1: healthcare space gonna be a big one. So that'll likely
Speaker 1: make some bankers years in an odd deal. You know,
Speaker 1: really don't see these deals at the end of the
Speaker 1: tail end of the year, and.
Speaker 4: A lot of action we've really been seeing in the
Speaker 4: healthcare space more broadly.
Speaker 1: So yeah, it kind of you when you talk to
Speaker 1: investors in bankers, they're hoping that this can kind of
Speaker 1: open up private equity. There still is not the demand
Speaker 1: that we're seeing for biotech in particular, which is such
Speaker 1: a big deal for the new issue market. But Medline
Speaker 1: will be a good test.
Speaker 3: If it's owned by these big private equity companies they've
Speaker 3: had an issue like this is how private acty was
Speaker 3: first explained to me when I was a kid. It's
Speaker 3: easy to raise the money, it's really easy to deploy
Speaker 3: the money. It's really hard to monetize your investments. That's
Speaker 3: where the real skill comes in. Where's that's been a
Speaker 3: challenge for private acuity.
Speaker 1: It's been a challenge for private equity. It's been a challenge,
Speaker 1: particularly in the US. I go back to the middle
Speaker 1: of this year's sale point, a tom Bravo asset pushed
Speaker 1: on price. According to investors, they priced above range. They're
Speaker 1: down seventeen percent. Wow, NQ Global down twenty eight percent.
Speaker 1: So when you look at the pree deals performance, you're
Speaker 1: buying IPOs for alpha generation, you want to outperform on
Speaker 1: an average basis the entire year here in the US
Speaker 1: only up seven percent, so you're trailing the S and
Speaker 1: P five hundred. You've got private equity leverage to sell
Speaker 1: down overhang. So Medline is going to be a good
Speaker 1: test of kind of deal execution, just given that it's
Speaker 1: been in the hopper for some time.
Speaker 4: What are you hearing in terms of expectations for next year?
Speaker 1: Head yet, opium raised, rains eternal. I mean bankers like
Speaker 1: bankers are candid right, expectations we're high for twenty twenty five,
Speaker 1: it was a fine year. Expectations are that we should
Speaker 1: at least match where we're at in twenty twenty six.
Speaker 1: The big question is do private equity sponsors show up,
Speaker 1: are they willing to get these deals out of the door?
Speaker 1: And if that doesn't happen, is there enough tech companies
Speaker 1: that can kind of carry the baton. There's a lot
Speaker 1: of debate around who would go public and how to
Speaker 1: fil some of that volume.
Speaker 3: Yeah, I would think, and I've been proven wrong that
Speaker 3: if I'm private ECUA, I actually want to get these
Speaker 3: things out the door. I need to monetize these things
Speaker 3: because I need to go out return that capital to
Speaker 3: my ALP so I can raise more capital and get
Speaker 3: more management fees. But I know they're just just loath
Speaker 3: to do a down round like this IPO something at
Speaker 3: below where they're carrying.
Speaker 1: Well, that's the tough part, right. So if you are
Speaker 1: in the market or want to be in the market
Speaker 1: for another fund, well, people want to see where your
Speaker 1: IR is. If I take you public at a discount
Speaker 1: to where we bought it, I'm not really delivering on
Speaker 1: those metroles.
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