WEBVTT - Closing Bell: Akami Misses Expectations, Deere Soars, Klarna Tumbles

0:00:02.480 --> 0:00:09.840
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:10.039 --> 0:00:13.520
<v Speaker 2>This is the closing bell on this stock mover's report.

0:00:13.760 --> 0:00:16.680
<v Speaker 2>The company's making moves at the close of US trading

0:00:16.880 --> 0:00:21.360
<v Speaker 2>with Karl Masser, Tim Steneback, Romain Bostik, and Katie Greifel.

0:00:22.360 --> 0:00:24.560
<v Speaker 1>While we are getting some earnings, not necessarily the biggest

0:00:24.600 --> 0:00:26.640
<v Speaker 1>earnings in the world, but we sort of walked through

0:00:26.680 --> 0:00:28.480
<v Speaker 1>them to give a broader read here on what's going

0:00:28.520 --> 0:00:31.479
<v Speaker 1>on in the broader economy and more importantly specifically in

0:00:31.520 --> 0:00:33.680
<v Speaker 1>the tech space. Akamaia, which I guess makes a lot

0:00:33.680 --> 0:00:36.280
<v Speaker 1>of the pipelines, if you will, of the Internet, reporting

0:00:36.320 --> 0:00:38.400
<v Speaker 1>a just a DPS that did beat a dollar eighty

0:00:38.440 --> 0:00:42.239
<v Speaker 1>four versus street estimates of a dollar seventy six revenue

0:00:42.280 --> 0:00:44.720
<v Speaker 1>inline at about one point one billion dollars. But for

0:00:45.680 --> 0:00:48.200
<v Speaker 1>the full year twenty twenty six, the company says expect

0:00:48.200 --> 0:00:50.040
<v Speaker 1>revenue in a range of four point four to four

0:00:50.080 --> 0:00:52.760
<v Speaker 1>point five to five billion dollars, a low into that

0:00:52.840 --> 0:00:55.600
<v Speaker 1>range is in line with the average of analysts estimates,

0:00:55.640 --> 0:00:58.400
<v Speaker 1>and for the current quarter, the fiscal first quarter, the

0:00:58.400 --> 0:01:00.120
<v Speaker 1>company sees a just a dps in a range of

0:01:00.200 --> 0:01:02.560
<v Speaker 1>a dollar fifty to a dollar sixty seven. That might

0:01:02.600 --> 0:01:04.600
<v Speaker 1>be why the shares are down. The street was looking

0:01:04.640 --> 0:01:06.360
<v Speaker 1>for a dollar seventy five, so the top end of

0:01:06.360 --> 0:01:10.000
<v Speaker 1>that range a below significantly below the average of analyst estimate.

0:01:10.160 --> 0:01:12.160
<v Speaker 3>Yeah, come ies up about twenty five percent here in

0:01:12.160 --> 0:01:14.600
<v Speaker 3>twenty twenty six, but definitely a haircut if you look

0:01:14.640 --> 0:01:18.240
<v Speaker 3>at that after market trade. So continuing to track that one, Hey,

0:01:18.319 --> 0:01:20.479
<v Speaker 3>let's go to some of the individual gainers. If we

0:01:20.520 --> 0:01:24.360
<v Speaker 3>may Omnicom. We were breaking down the advertising and marketing

0:01:24.400 --> 0:01:26.400
<v Speaker 3>company about twenty four hours ago. It came out after

0:01:26.440 --> 0:01:28.520
<v Speaker 3>the close, and this is your number one gainer in

0:01:28.560 --> 0:01:30.920
<v Speaker 3>the S and P five hundred again of about fifteen

0:01:30.959 --> 0:01:35.000
<v Speaker 3>percent here, biggest intra day move that we've seen since

0:01:35.000 --> 0:01:37.240
<v Speaker 3>about February twenty twenty seconds. So this is a pretty

0:01:37.240 --> 0:01:40.360
<v Speaker 3>substantial move in this name. The company did report fourth

0:01:40.440 --> 0:01:43.679
<v Speaker 3>quote a revenue that beat consensus estimates. Companies board also

0:01:43.680 --> 0:01:46.760
<v Speaker 3>authorized a five billion dollar share buy back, and so

0:01:46.800 --> 0:01:49.840
<v Speaker 3>we definitely have seen investors moving into this one. Let's

0:01:49.880 --> 0:01:52.240
<v Speaker 3>move on over to the number two gainer in the

0:01:52.320 --> 0:01:54.880
<v Speaker 3>s and P five hundred. We're talking about Deer again

0:01:54.960 --> 0:01:57.880
<v Speaker 3>of just shy of twelve percent. It's the world's largest

0:01:57.920 --> 0:02:01.200
<v Speaker 3>farm machinery maker. And it did boost it's annual profit outlook,

0:02:01.240 --> 0:02:05.600
<v Speaker 3>anticipating a long awaited upturn in the agriculture economy, so

0:02:05.640 --> 0:02:08.480
<v Speaker 3>the company increased its outlook for small agriculture and turf,

0:02:08.800 --> 0:02:12.200
<v Speaker 3>as well as construction and forestry, but its largest segment

0:02:12.280 --> 0:02:15.800
<v Speaker 3>of production and precision agriculture, they did point out remains

0:02:15.880 --> 0:02:18.400
<v Speaker 3>under pressure, and then just got to mention Etsy, we

0:02:18.400 --> 0:02:20.600
<v Speaker 3>were talking about this one two twenty four hours ago

0:02:21.320 --> 0:02:24.480
<v Speaker 3>at CS high is almost thirteen percent intra day, but

0:02:24.639 --> 0:02:27.560
<v Speaker 3>finishing with a gain of about nine percent. The online

0:02:27.560 --> 0:02:30.440
<v Speaker 3>marketplace reported its fourth quarter results, but also a very

0:02:30.440 --> 0:02:32.760
<v Speaker 3>big impact of the company's deal to sell its deep

0:02:32.800 --> 0:02:36.320
<v Speaker 3>hop business to eBay for about one point two billion dollars.

0:02:36.360 --> 0:02:37.760
<v Speaker 4>Yes, Romain, I.

0:02:37.720 --> 0:02:39.880
<v Speaker 1>Thought you were going to do the third biggest gainer

0:02:39.960 --> 0:02:41.560
<v Speaker 1>in the S and P. You did the first, the

0:02:41.600 --> 0:02:42.760
<v Speaker 1>second just skipped over there.

0:02:42.840 --> 0:02:44.520
<v Speaker 4>You no, quite, Frankly, I'm not a one to two

0:02:44.560 --> 0:02:46.880
<v Speaker 4>three kind of gal. You should know that. What was it?

0:02:47.160 --> 0:02:47.440
<v Speaker 3>What is it?

0:02:47.520 --> 0:02:48.240
<v Speaker 4>Roman? What if you do?

0:02:48.280 --> 0:02:51.000
<v Speaker 1>It's Texas specific land. It was about ten percent here

0:02:51.040 --> 0:02:53.200
<v Speaker 1>on the day in Katie Greifeld, speaking of Texas, I

0:02:53.240 --> 0:02:54.839
<v Speaker 1>think there's some earnings out Also.

0:02:55.440 --> 0:02:59.880
<v Speaker 5>Speaking of Texas, this is coming from Texas Roadhouse. That's right.

0:02:59.880 --> 0:03:03.120
<v Speaker 4>We do have them compodies known for their role in Texas.

0:03:03.120 --> 0:03:04.240
<v Speaker 4>They were hoping for that text.

0:03:05.240 --> 0:03:07.440
<v Speaker 5>There's literally Texas in the name. Let's talk about some

0:03:07.520 --> 0:03:10.320
<v Speaker 5>of these numbers here. Fourth quarter revenue coming in a

0:03:10.360 --> 0:03:13.120
<v Speaker 5>bit light one point four eight billion dollars. The estimate

0:03:13.240 --> 0:03:17.840
<v Speaker 5>was for one point five billion dollars. EPs also coming

0:03:17.880 --> 0:03:20.480
<v Speaker 5>in a little bit below the year over year figure

0:03:20.560 --> 0:03:24.760
<v Speaker 5>one dollar twenty eight cents versus one dollar and seventy

0:03:24.760 --> 0:03:28.000
<v Speaker 5>three cents a year ago, so missing when it comes

0:03:28.040 --> 0:03:32.359
<v Speaker 5>to it's EPs there. It's interesting they are raising their

0:03:32.400 --> 0:03:35.600
<v Speaker 5>dividend here they do see twenty twenty six commodity cost

0:03:35.680 --> 0:03:38.880
<v Speaker 5>inflation about seven percent. We know that is a big

0:03:38.920 --> 0:03:42.360
<v Speaker 5>deal specifically for a lot of these names in the

0:03:42.400 --> 0:03:45.040
<v Speaker 5>restaurant industry. And you can see shares down about eight

0:03:45.120 --> 0:03:47.320
<v Speaker 5>tenths of a percent. You know, as we start to

0:03:47.320 --> 0:03:49.119
<v Speaker 5>parse through some of these numbers here.

0:03:49.280 --> 0:03:51.360
<v Speaker 4>Well, let's look at some of the worst performers in

0:03:51.400 --> 0:03:54.040
<v Speaker 4>the S and P five hundred today, weighing down the

0:03:54.080 --> 0:03:58.119
<v Speaker 4>index booking holdings among the biggest drags today, shares fell

0:03:58.200 --> 0:04:01.320
<v Speaker 4>to their lowest level at least going back to September

0:04:01.400 --> 0:04:04.040
<v Speaker 4>of twenty twenty four. Shares ended up closing down by

0:04:04.040 --> 0:04:07.240
<v Speaker 4>more than six point one percent. The company reported fourth

0:04:07.280 --> 0:04:10.680
<v Speaker 4>quarter adjusted EPs below expectations. Rest of the results though

0:04:10.760 --> 0:04:14.520
<v Speaker 4>largely above consensus. This is a stock that's four thousand dollars.

0:04:14.800 --> 0:04:17.400
<v Speaker 4>The company gave a growth forecast approved to twenty five

0:04:17.520 --> 0:04:21.880
<v Speaker 4>to one stock split. DA Davidson, Kanter Key Bank all

0:04:21.920 --> 0:04:24.960
<v Speaker 4>among the firms that cut their price targets after earnings.

0:04:25.720 --> 0:04:27.920
<v Speaker 4>Also keep an eye on what happened today with Blue

0:04:27.920 --> 0:04:31.120
<v Speaker 4>Oul Capital. Shares taken a hit after the company decided

0:04:31.120 --> 0:04:34.440
<v Speaker 4>to restrict withdrawals from one of its private credit funds.

0:04:34.440 --> 0:04:38.039
<v Speaker 4>It raises concerns about the entire private credit industry. At

0:04:38.080 --> 0:04:40.280
<v Speaker 4>one point eight trillion dollar market shares down today by

0:04:40.480 --> 0:04:44.000
<v Speaker 4>six percent. The firm set investors in Blue Oul Capital Corp.

0:04:44.080 --> 0:04:46.000
<v Speaker 4>Two will no longer be able to redeem shares on

0:04:46.000 --> 0:04:49.160
<v Speaker 4>a quarterly basis, and the funnel return capital through periodic

0:04:49.200 --> 0:04:54.159
<v Speaker 4>distributions funded by loan repayments, asset sales or other transactions.

0:04:54.760 --> 0:04:57.280
<v Speaker 4>And finally, watching what's going on today with shares of

0:04:57.360 --> 0:05:00.359
<v Speaker 4>Klarna Group. They fell by more than twenty six percent.

0:05:00.440 --> 0:05:03.039
<v Speaker 4>Let's just round that down. Round it up twenty seven

0:05:03.080 --> 0:05:05.800
<v Speaker 4>percent come on this after the company reported two consecutive

0:05:05.839 --> 0:05:08.880
<v Speaker 4>quarters of losses. It's struggling to convince investors to hold

0:05:08.880 --> 0:05:11.880
<v Speaker 4>on for future profit pretext loss of two hundred and

0:05:11.920 --> 0:05:14.839
<v Speaker 4>forty one million dollars for the last year. Despite pulling

0:05:14.839 --> 0:05:18.120
<v Speaker 4>in record revenue, it set aside more money for potentially

0:05:18.200 --> 0:05:20.760
<v Speaker 4>souring loans. So I don't know if that's a commentary

0:05:20.800 --> 0:05:23.799
<v Speaker 4>about the customers of Klarna that it serves around the world.

0:05:23.960 --> 0:05:26.080
<v Speaker 1>Yeah, I'm actually intrigued by that story because wasn't that

0:05:26.120 --> 0:05:28.279
<v Speaker 1>whole idea is that given the short term nature of

0:05:28.279 --> 0:05:30.360
<v Speaker 1>these loans, they weren't carrying as much credit risk as

0:05:30.360 --> 0:05:33.400
<v Speaker 1>maybe the exactational banks were. But definitely something to look into.

0:05:33.520 --> 0:05:35.800
<v Speaker 4>That's a big haircut today, twenty seven percent.

0:05:35.960 --> 0:05:40.200
<v Speaker 1>Yeah, it is, it's huge. Just real quickly, let's going ball, tim,

0:05:40.600 --> 0:05:41.560
<v Speaker 1>what's going on over there?

0:05:41.960 --> 0:05:45.239
<v Speaker 4>That's that a that's going fall. That's a big drop,

0:05:45.320 --> 0:05:47.760
<v Speaker 4>that's a full shape. Yeah, thank you, Katie.

0:05:48.920 --> 0:05:52.920
<v Speaker 2>This stock Mover's report from Bloomberg Radio. Check back with

0:05:53.000 --> 0:05:55.599
<v Speaker 2>us throughout the day for the latest roundup of companies

0:05:55.640 --> 0:05:58.760
<v Speaker 2>making news on Wall Street and for the latest market

0:05:58.800 --> 0:06:03.240
<v Speaker 2>moving headlines. Send to Bloomberg Radio Live Catch us on YouTube,

0:06:03.360 --> 0:06:06.839
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:06:06.920 --> 0:06:08.400
<v Speaker 2>the Bloomberg Business app.