WEBVTT - Week Ahead: Broadcom, Crowdstrike, and Macy's

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

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look. Now, it's some stocks making news

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<v Speaker 1>in the week ahead. I'm Nathan Hager with Bloomberg Equities.

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<v Speaker 1>Reported in Italia Kanijevich, and it looks like this Wednesday

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<v Speaker 1>is going to be the day we see a lot

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<v Speaker 1>of news with a bunch of companies reporting, including Broadcom.

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<v Speaker 1>More of the software story to be told, eh, Natalia.

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<v Speaker 3>That's right, So yes, Broadcom reports earnings on dun third

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<v Speaker 3>the tickets avgo. You know, lots of expectations, of course

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<v Speaker 3>for this earnings report, because we've heard from CEO who

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<v Speaker 3>said that the company expects to see sales above one

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<v Speaker 3>hundred billion dollars next year. They also said that AI

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<v Speaker 3>Chip revenue will be at around ten point seven billion dollars.

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<v Speaker 3>And then if we look back at the latest earnings report,

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<v Speaker 3>we saw that the company posted better than expected quarterly outlook.

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<v Speaker 3>They also announced a pretty solid stock buyback program of

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<v Speaker 3>as much as ten billion dollars. We know that companies

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<v Speaker 3>have been buying back their own stocks pretty aggressively this year.

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<v Speaker 3>Analysts are of course, really excited by the company's AI

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<v Speaker 3>related revenue. We know that Broadcom expanded agreements with companies

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<v Speaker 3>like Google and Anthropic, and it's also you know, a

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<v Speaker 3>good addition to multi year visibility and contracts. And we

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<v Speaker 3>also saw you know, some optimism across Wall Street analysts

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<v Speaker 3>because on Thursday, Susquehanna analysts also erased the price target

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<v Speaker 3>on Broadcom to four hundred and ninety from four hundred

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<v Speaker 3>and fifty dollars. And the stock has doing really well

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<v Speaker 3>this year. On the year today basis as of Thursday,

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<v Speaker 3>the stock was up by twenty three percent, so it's

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<v Speaker 3>a pretty solid run.

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<v Speaker 1>Yeah, a nice little run there for that stock. So

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<v Speaker 1>we'll be definitely keeping an eye on that one, along

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<v Speaker 1>with another pretty big tech name that's had an even

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<v Speaker 1>better run. This is CrowdStrike, also reporting Wednesday.

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<v Speaker 3>That's right, Yes, CrowdStrike valuation of course have searched this year,

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<v Speaker 3>helped by deals to make custom chips for companies like

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<v Speaker 3>open Ai and Anthropic. And again I'm going to cite

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<v Speaker 3>the latest Earnix report because CrowdStrike shares kind of fluctuated

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<v Speaker 3>a little bit, but the software company reported results that

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<v Speaker 3>were in line with expectations. And we know that this stock,

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<v Speaker 3>among other software peers, were really volatile this year because

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<v Speaker 3>investors were debating potential disruptions coming from AI. Cybersecurity stocks

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<v Speaker 3>in particular, really volatile because Anthropic announced features in its

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<v Speaker 3>cloud AI model that can scan different codes for vulnerabilities.

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<v Speaker 3>So lots of debates about the sustainability of the software

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<v Speaker 3>sector here in the United States. Nevertheless, we also see

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<v Speaker 3>some optimism on Wall Street. On May twenty seventh, web

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<v Speaker 3>Bush analyst Dan Ives raised the price target to crowd

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<v Speaker 3>Strike Hollings to seven one hundred dollars from five hundred

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<v Speaker 3>and fifty. He maintained outperform rating, and as of Thursday,

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<v Speaker 3>as you mentioned, the stock has been doing really well

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<v Speaker 3>this year. The stock was up by about forty three percent,

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<v Speaker 3>so definitely outperforming broader markets.

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<v Speaker 1>Yeah, well, we know how bullish Dan Ives of Webbush

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<v Speaker 1>is across the AI story, so his perspective definitely one

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<v Speaker 1>to pay attention to. Now, before these tech and software

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<v Speaker 1>companies report, we're going to hear from a big name

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<v Speaker 1>in retail before the bell on Wednesday in Macy's how

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<v Speaker 1>are things at Harold Square these days to Talia.

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<v Speaker 3>Yes, so you know, I actually also go to mass

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<v Speaker 3>pretty regularly. When you go to the department store, it's

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<v Speaker 3>very crowded, no signs of you know, any consumer concerns

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<v Speaker 3>or recession, but the stock is flat year to date.

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<v Speaker 3>We of course keep an eye on Maces because it's

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<v Speaker 3>also a bell weather because it's such a huge presence

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<v Speaker 3>across the United States. So Bloomberg Intelligence analysts expect that

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<v Speaker 3>sales may meet consensus based on transaction data, comparable sales

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<v Speaker 3>could be somewhere at around one point three percent EPs

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<v Speaker 3>could top expectations. Now Bloomingdale Sales, which is around the

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<v Speaker 3>corner from Bloomberg office, yes, yes, so they expected that

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<v Speaker 3>sales have risen to low to smid single digits on

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<v Speaker 3>the earning skull. Of course, people will be watching whatever

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<v Speaker 3>macy says about the progress because they including two hundred

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<v Speaker 3>revitalized stores, all things on consumer trends, luxury spending, teriff

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<v Speaker 3>free funds, and of course the outlook. You know, it's

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<v Speaker 3>interesting because Macy's management also introduced a new letter for

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<v Speaker 3>the shape of US economic growth. They expect e shaped

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<v Speaker 3>economic recovery where you know, wealthy consumers are doing well,

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<v Speaker 3>middle income consumers hanging in and lower income consumers are struggling.

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<v Speaker 3>So anyway, Late Stars report. By the way, it was

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<v Speaker 3>really good. The company reported better than expected results, but

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<v Speaker 3>it did not help the stock price. Maybe there are

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<v Speaker 3>lots of concerns about consumer trends going forward, maybe something

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<v Speaker 3>that we have not seen yet.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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