Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look now at some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg
Speaker 1: Equities reporter Carmen Reinikey. On another pretty busy week for earnings,
Speaker 1: despite the fact almost everybody's reported already, but we hear
Speaker 1: from a big name in retail this week, Target on Tuesday.
Speaker 1: It seems like it's been tough for Target for several
Speaker 1: quarters now, Carmen.
Speaker 2: Yeah, it's true.
Speaker 3: So a key figure for them is comparable sales growth.
Speaker 3: It's been negative in the last three quarters, and it's
Speaker 3: something that analysts are expecting will fall again. So that's
Speaker 3: something I'm definitely going to be watching. Shares have actually
Speaker 3: gotten a little bit of a resurgence so far this year.
Speaker 3: They're up about seventeen percent after four consecutive years of falling,
Speaker 3: so that's going to be really important, you know, earnings
Speaker 3: generally speaking, move stocks. I'm also watching this after Walmart's
Speaker 3: report earlier in the month. It forecasts less earnings growth
Speaker 3: for the year than Wall Street anticipated and had a
Speaker 3: pretty conservative view of the US economy and sort of
Speaker 3: unpredictable times for consumers, which I think raised a little
Speaker 3: bit of a red flag. So Walmart usually does offer
Speaker 3: kind of conservative guidance at the start of the year
Speaker 3: and then raises it in the following quarters. But this
Speaker 3: is still one that people are really watching, as you know,
Speaker 3: a bell weather for the US economy, and Target is
Speaker 3: right in line sort of after that.
Speaker 1: Yeah, absolutely, you know, you mentioned that the stock has
Speaker 1: been on the rise since the start of the year
Speaker 1: despite all the troubles. Does that really kind of raise
Speaker 1: the bar for Target when it comes to meeting those
Speaker 1: earning expectations?
Speaker 3: It certainly could. It's the next catalyst for sure that
Speaker 3: investors will be watching for, you know, deciding if they
Speaker 3: want to continue to buy the stock or sell. I
Speaker 3: think the Target's gotten so beat up in the last
Speaker 3: few years that it's maybe not the biggest indicator that
Speaker 3: the bar is raised, And especially because we know they're
Speaker 3: in the turnaround, I think expectations aren't super high for them,
Speaker 3: so we'll see. I mean, certainly bulls want to see
Speaker 3: this rally continue, and.
Speaker 1: We also hear from another software name CrowdStrike on Tuesday
Speaker 1: as well. You know, every time I think about CrowdStrike,
Speaker 1: I think about the outage from a year or so ago.
Speaker 1: Is that something investors still think about?
Speaker 3: You know, that's such a good question. I think the
Speaker 3: CrowdStrike was able to really move past that quite quickly.
Speaker 3: It's not something that I've necessarily seen is the biggest
Speaker 3: problem for CrowdStrike in the last few months. I mean,
Speaker 3: certainly the bigger thing that I'm kind of looking at
Speaker 3: is that we've seen really broad based weakness in software
Speaker 3: and this was actually one of the stocks that got
Speaker 3: hit recently when Anthropic announced a new security feature and
Speaker 3: it's clawed AI models, so it's a cyber security company,
Speaker 3: and other companies sort of in that space, Cloud Flair,
Speaker 3: z Scaler sale point slumped, so crowdstrikes regained some of
Speaker 3: those losses. It's down still though, nineteen percent almost twenty
Speaker 3: percent on the year. So that's actually something that I'm
Speaker 3: looking for sort of most in these earnings is what
Speaker 3: are they going to say about AI going forward and
Speaker 3: how they're incorporating it. If they're you know, they are
Speaker 3: worried about disruption, or if they sort of have plans
Speaker 3: to maybe integrate it and you know, build their business
Speaker 3: going forward, you.
Speaker 1: Know what that kind of decline and with you know,
Speaker 1: the way that software stocks have been hammered so far
Speaker 1: in this discussion around AI disruption, you have to wonder
Speaker 1: whether after these earnings, maybe some investors might see CrowdStrike
Speaker 1: as a by opportunity. Is that something that you're thinking about?
Speaker 3: Oh totally. I mean we've seen so many valuations kind
Speaker 3: of come in because of these big sell offs. So
Speaker 3: if you are a value investor, if you're even just
Speaker 3: looking for you know, stocks at a discount, there are
Speaker 3: a lot of names in software that maybe makes sense.
Speaker 3: So definitely going to be watching there and see if
Speaker 3: investors you know, hear good things in the report and say, okay,
Speaker 3: this is definitely the time to buy.
Speaker 1: And then on Wednesday, Broadcom reports its results. With all
Speaker 1: this nervousness around the AI spending story, where is the
Speaker 1: bar for the AI infrastructure company Broadcom, you know.
Speaker 3: Especially after Nvidia. I think it's going to be really
Speaker 3: interesting to see how investors react to this report. So
Speaker 3: it's another chip maker, it's also kind of gotten some
Speaker 3: shine as maybe you know, moving in and kind of
Speaker 3: grabbing more market share in the chip making space. But
Speaker 3: that being said, it's also kind of moved sideways. This year.
Speaker 3: We've seen you know, investors really rotating out of these
Speaker 3: sort of big tech companies, these you know, early sort
Speaker 3: of picks and shovels AI companies and into you know,
Speaker 3: just maybe safer parts of the market. So broad comes
Speaker 3: down ten percent so far this year, and I'm I'm
Speaker 3: just really interested to see how investors react to this report.
Speaker 3: Analysts still expect really solid figures out of Broadcom, so
Speaker 3: they're estimating you know, adjusted earnings per share growth and
Speaker 3: revenue growth of more than twenty seven to twenty eight
Speaker 3: percent for this company. So we could see another kind
Speaker 3: of similar reaction where you know, the results are really
Speaker 3: good and investors just still aren't convinced and you know,
Speaker 3: buying shares here.
Speaker 1: Yeah, I mean it used to be you know, it's
Speaker 1: twenty something percent earnings growth was huge, but after in
Speaker 1: Nvidia reporting something like seventy plus percent, the bar is
Speaker 1: kind of in a different place for these companies, isn't
Speaker 1: it totally?
Speaker 3: And it's also just under this umbrella of the like
Speaker 3: wide based anxiety around AI and kind of coming from
Speaker 3: two sides. I mean, we talked about software people worried
Speaker 3: about disruption there. But then on the flip side, you
Speaker 3: know all of the Kapex spending that's you know, boosted
Speaker 3: in VideA and you know Broadcom would also be a
Speaker 3: beneficiary of is worrying to investors. They're worried about cyclicality.
Speaker 3: They're worried that it's going to stop at some point.
Speaker 3: So that's really you know, overshadowed one just stocks in
Speaker 3: the eye trade, but the broader market.
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