WEBVTT - CrowdStrike Drops, Dollar Tree Falls, Snowflake Rises After UBS Upgrade

0:00:02.520 --> 0:00:09.040
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

0:00:08.880 --> 0:00:13.160
<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

0:00:13.200 --> 0:00:17.840
<v Speaker 2>the stock market, harnessing the power of Bloomberg data. Let's

0:00:18.079 --> 0:00:20.040
<v Speaker 2>get a look at some stocks on the move today

0:00:20.079 --> 0:00:21.520
<v Speaker 2>with Bloomberg's Isabelle Lee.

0:00:21.560 --> 0:00:24.160
<v Speaker 3>Hey, guys, we're looking at Crowdstrek first, So ticker there

0:00:24.280 --> 0:00:29.160
<v Speaker 3>is CRWD. We see shares falling by around seven percent,

0:00:29.400 --> 0:00:33.120
<v Speaker 3>So that's after the cybersecurity company posted disappointing first quarter

0:00:33.479 --> 0:00:37.160
<v Speaker 3>subscription revenue, so it's second quarter sales forecast also underwhelmed,

0:00:37.360 --> 0:00:39.479
<v Speaker 3>while an unchanged view on the full year revenue was

0:00:39.520 --> 0:00:42.400
<v Speaker 3>seen as negative by some analysts. We have Evercore can

0:00:42.400 --> 0:00:46.880
<v Speaker 3>Accord downgrading the stock. So Crowdstrek declined despite really beating

0:00:46.960 --> 0:00:49.839
<v Speaker 3>earnings expectations. And again we see that investors are more

0:00:49.880 --> 0:00:52.600
<v Speaker 3>focused on the forward outlook. So the company also reported

0:00:52.600 --> 0:00:55.240
<v Speaker 3>annual recurring revenue for the quarter that was just in

0:00:55.280 --> 0:00:57.640
<v Speaker 3>line with estimates. And of course, in May, recall that

0:00:57.720 --> 0:01:00.640
<v Speaker 3>Crowdstrek announced that it would cut about five hundred employees

0:01:00.880 --> 0:01:03.840
<v Speaker 3>and at that time shares dropped because Wall Street questioned

0:01:03.840 --> 0:01:07.200
<v Speaker 3>whether companies move came from a place of weakness or

0:01:07.240 --> 0:01:09.320
<v Speaker 3>strength so sometimes you feel like you just really can't

0:01:09.319 --> 0:01:10.360
<v Speaker 3>please these investors.

0:01:10.480 --> 0:01:13.960
<v Speaker 1>Well, ain't that the truth? Interesting too, because cybersecurity feels

0:01:14.040 --> 0:01:15.640
<v Speaker 1>like a.

0:01:15.000 --> 0:01:18.760
<v Speaker 3>Resilient place within the economy, but you know, maybe there's

0:01:18.760 --> 0:01:20.040
<v Speaker 3>some individual issues there.

0:01:20.080 --> 0:01:23.280
<v Speaker 1>Okay, let's also go to where my Dollar Tree. This

0:01:23.360 --> 0:01:26.240
<v Speaker 1>is so interesting because the dollar stores really diverge on

0:01:26.280 --> 0:01:27.200
<v Speaker 1>this exactly.

0:01:27.240 --> 0:01:30.600
<v Speaker 3>So Dollar Tree DLTR, not to be confused with Dollar General,

0:01:30.640 --> 0:01:31.160
<v Speaker 3>which is DG.

0:01:31.280 --> 0:01:31.839
<v Speaker 1>We're talking about.

0:01:31.840 --> 0:01:34.840
<v Speaker 3>Dollar Tree shares are falling almost ten percent because we

0:01:34.880 --> 0:01:38.400
<v Speaker 3>have in the company warning investors that second quarter profit

0:01:38.680 --> 0:01:41.280
<v Speaker 3>could be down as much as fifty percent from Marieogo

0:01:41.280 --> 0:01:43.720
<v Speaker 3>and that's of course related to tire related costs. So

0:01:44.080 --> 0:01:46.800
<v Speaker 3>we have Dollar Tree saying that the timing of expenses

0:01:47.040 --> 0:01:49.880
<v Speaker 3>will weigh on adjusted EPs, and that includes a one

0:01:49.960 --> 0:01:52.640
<v Speaker 3>hundred and forty five percent payout on levees because they

0:01:52.680 --> 0:01:54.960
<v Speaker 3>have a lot of products coming from China. So Dollar

0:01:55.000 --> 0:01:58.000
<v Speaker 3>Tree said they expect profits to quote re accelerate in

0:01:58.040 --> 0:02:00.440
<v Speaker 3>the remainder of the year. But still the outlook, to

0:02:00.480 --> 0:02:03.880
<v Speaker 3>Alex's point, really pales in comparison to its rival Dollar General,

0:02:04.120 --> 0:02:06.560
<v Speaker 3>because on Tuesday, the stocks search to the most on

0:02:06.640 --> 0:02:09.840
<v Speaker 3>record after raising its sales profit and guidance. So both

0:02:09.880 --> 0:02:13.240
<v Speaker 3>are dollar chains, but they're different because Dollar General generates

0:02:13.280 --> 0:02:16.320
<v Speaker 3>around eighty percent of sales from food and consumable goods.

0:02:16.040 --> 0:02:18.600
<v Speaker 1>So this means that they're less reliant on importans.

0:02:19.000 --> 0:02:22.960
<v Speaker 3>Dollar Tree gets just half of its revenue from these categories,

0:02:23.120 --> 0:02:26.040
<v Speaker 3>making them more reliable on inputs. And add to that,

0:02:26.320 --> 0:02:30.240
<v Speaker 3>most of their majority of their directly imported products are

0:02:30.320 --> 0:02:31.519
<v Speaker 3>imported from China.

0:02:31.560 --> 0:02:33.200
<v Speaker 1>And we know what's happening there in the tit for

0:02:33.320 --> 0:02:35.600
<v Speaker 1>tat trade war. All right, what else we got, Snowflake?

0:02:35.600 --> 0:02:36.120
<v Speaker 2>What do you get there?

0:02:36.600 --> 0:02:39.320
<v Speaker 3>Snowflake is a different story because we're seeing some green there,

0:02:39.320 --> 0:02:41.519
<v Speaker 3>but really just five tens of one percent. The ticker

0:02:41.600 --> 0:02:45.320
<v Speaker 3>is snow Snow. So the stock is rising after UBS

0:02:45.400 --> 0:02:48.000
<v Speaker 3>raised the stock to buy. They say that the company

0:02:48.040 --> 0:02:50.760
<v Speaker 3>is early in the multi year data investment cycle, so

0:02:50.840 --> 0:02:53.560
<v Speaker 3>the price target is now two hundred and sixty five dollars.

0:02:53.600 --> 0:02:56.160
<v Speaker 3>That's up from two hundred and ten dollars. They also

0:02:56.200 --> 0:02:58.920
<v Speaker 3>had a big summit and from that event, UBS said

0:02:58.919 --> 0:03:01.840
<v Speaker 3>that they're becoming increase recently confident in the prospect that

0:03:01.919 --> 0:03:04.520
<v Speaker 3>were just a few quarters away for this whole multi

0:03:04.600 --> 0:03:08.080
<v Speaker 3>year enterprise. Evercore also said that there were no major

0:03:08.080 --> 0:03:11.720
<v Speaker 3>financial updates. There were no major financial updates at the event, Yes,

0:03:11.800 --> 0:03:14.080
<v Speaker 3>but it's clear that AI has hit a tipping point.

0:03:14.160 --> 0:03:16.280
<v Speaker 3>And td coown also had good words. They said that

0:03:16.600 --> 0:03:19.440
<v Speaker 3>Snowflake is bleaning into an accelerated product roadmap.

0:03:19.480 --> 0:03:21.079
<v Speaker 1>So lots of good words there in the.

0:03:21.000 --> 0:03:23.320
<v Speaker 3>Summit, which is I guess the best news you can

0:03:23.360 --> 0:03:24.839
<v Speaker 3>ask for when you hold one.

0:03:25.680 --> 0:03:29.800
<v Speaker 2>The Stock Movers podcast from Bloomberg Radio. Check back with

0:03:29.880 --> 0:03:32.639
<v Speaker 2>us throughout the day for the latest roundup of companies

0:03:32.680 --> 0:03:35.720
<v Speaker 2>making news on Wall Street and for the latest market

0:03:35.760 --> 0:03:40.160
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:03:40.160 --> 0:03:43.440
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:03:43.480 --> 0:03:44.960
<v Speaker 2>the Bloomberg Business app.