WEBVTT - Week Ahead: Oracle, Adobe, and Macy’s 

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<v Speaker 1>Bloomberg Audio Studios.

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<v Speaker 2>Podcasts. Radio. News. The Stock Movers Report. Your roundup of

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<v Speaker 2>companies making moves in the stock market. Harnessing the power

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<v Speaker 2>of Bloomberg data.

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<v Speaker 1>Let's take a look now at 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>reporter Carmen Reinecke. I say week ahead, Carmen, but it

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<v Speaker 1>seems like everything's stacked on Thursday because we're going to

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<v Speaker 1>hear from a bunch of names just that day alone.

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<v Speaker 1>Maybe the biggest earnings story that day is going to

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<v Speaker 1>be Oracle. What are we expecting from this company that's

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<v Speaker 1>kind of become an AI bellwether, right?

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<v Speaker 3>You know, I was going to say exactly the same thing.

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<v Speaker 3>Thursday is the day to be watching for next week.

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<v Speaker 3>And you're right, Oracle is one of the premier names.

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<v Speaker 3>So this is ticker O-R-C-L. It's going to report results

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<v Speaker 3>on Thursday. So this stock has been on a little

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<v Speaker 3>bit of a downslide. So shares are down about 40%

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<v Speaker 3>from the start of June. And down more than 20%

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<v Speaker 3>so far this year, which is on track for its

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<v Speaker 3>worst annual performance since 2001. So I think this earnings

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<v Speaker 3>report is going to be really important to maybe potentially

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<v Speaker 3>reverse some of this downward selling that we're seeing. So

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<v Speaker 3>analysts are overwhelmingly bullish here, and they expect adjusted earnings

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<v Speaker 3>per share to grow 18% in the quarter and revenue

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<v Speaker 3>to grow 28% to 19 billion. Bloomberg Intelligence is looking

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<v Speaker 3>for strong results here and saying that You know, strong

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<v Speaker 3>results from hyperscale cloud providers and the Neo clouds point

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<v Speaker 3>to better end markets for AI infrastructure. And it suggests

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<v Speaker 3>that Oracle cloud infrastructure could have a solid fiscal 2027

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<v Speaker 3>growth guidance that could exceed the consensus. So that's really important.

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<v Speaker 3>And it's what investors will be watching for.

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<v Speaker 1>So is part of the story here that just the

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<v Speaker 1>fact that Oracle's been on such a downslide that any

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<v Speaker 1>positivity is just going to move the stock higher? Is

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<v Speaker 1>that kind of what analysts are thinking right now?

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<v Speaker 3>You know, I think it's a little bit more complicated

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<v Speaker 3>than that, just because we've seen such a high barred

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<v Speaker 3>sort of environment for earnings lately that, you know, good

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<v Speaker 3>news isn't always rewarded. So I think that, yes, good

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<v Speaker 3>news could really help the stock here. It's been really

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<v Speaker 3>beaten down, but it's going to have to, you know,

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<v Speaker 3>sort of assuage a lot of concerns that are in

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<v Speaker 3>the market right now.

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<v Speaker 1>So obviously we're going to hear from Oracle, but we're

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<v Speaker 1>also going to hear this week on Thursday from Adobe,

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<v Speaker 1>a company that there'd been some saspocalypse fears around, I think,

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<v Speaker 1>a while back. Is that still overshadowing Adobe, Carmen?

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<v Speaker 2>Yeah.

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<v Speaker 3>You know, that is such a good question here from Adobe.

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<v Speaker 3>So this is ticker ADBE. This stock has really been

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<v Speaker 3>on a tear lately, actually. Shares are up 45% from

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<v Speaker 3>the end of June. And a lot of it is

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<v Speaker 3>because of this rebound in software stocks as some of

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<v Speaker 3>these SaaSpocalypse fears kind of go away. So earnings are

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<v Speaker 3>going to be really important here to kind of keep

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<v Speaker 3>this rally potentially going. The stock is still really beaten

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<v Speaker 3>down if you look back, you know, over the last

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<v Speaker 3>few years. So Earnings could be a great catalyst. Analysts

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<v Speaker 3>are expecting adjusted EPS of about $ 6 a share, 14%

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<v Speaker 3>jump from the same period a year ago. Revenue about

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<v Speaker 3>the same jump to $ 6. 7 billion.

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<v Speaker 2>So What's big.

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<v Speaker 3>Here is just is AI disrupting these companies as much

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<v Speaker 3>as sort of investors had initially feared, which is what

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<v Speaker 3>really brought down a lot of the software stocks. And,

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<v Speaker 3>you know, after Salesforce earnings last week, I think there's

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<v Speaker 3>more positivity in the market and people are really looking

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<v Speaker 3>for sort of proof that these companies can integrate AI

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<v Speaker 3>and it can help them instead of sort of disrupt

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<v Speaker 3>their business.

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<v Speaker 1>Aside from tech, we're also going to hear on Thursday

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<v Speaker 1>from Macy's, way apart from big tech. We go to

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<v Speaker 1>big department stores. What are we expecting along 34th Street

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<v Speaker 1>this quarter?

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<v Speaker 3>A very different part of the market, indeed. So, this

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<v Speaker 3>will be really interesting. Analysts are expecting pretty flat revenue growth.

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<v Speaker 3>So almost like no revenue growth from the same quarter

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<v Speaker 3>last year, $ 4. 8 billion revenue in the quarter and adjusted

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<v Speaker 3>earnings of $ 0. 36 per share, which is actually a little

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<v Speaker 3>bit down from the same quarter last year. I think

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<v Speaker 3>what's most important is looking for the impacts of things

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<v Speaker 3>like tariff refunds against sales expectations. So we've seen some

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<v Speaker 3>weakness in retailer results last week. Kohl's reported and those

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<v Speaker 3>results were mixed. So looking for the health of retailers

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<v Speaker 3>and the health of consumers is going to be really important.

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<v Speaker 3>And this stock has also been a little bit weak lately.

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<v Speaker 3>So shares are down about 15% from an early August peak.

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<v Speaker 3>So earnings are always an important catalyst. But again, here,

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<v Speaker 3>solid results could maybe reverse some of this decline while

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<v Speaker 3>if there is sort of a negative reaction, we could

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<v Speaker 3>see more selling ahead.

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<v Speaker 1>Well, it has to be said, I mean, Macy's over

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<v Speaker 1>the last several quarters have managed to beat expectations in

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<v Speaker 1>most of its last few reports. Are analysts feeling kind

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<v Speaker 1>of positive again this time around when it comes to

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<v Speaker 1>what we get, you know, heading into the holidays as

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<v Speaker 1>well and thinking about the Thanksgiving parade? It's not too

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<v Speaker 1>soon to think about that, I guess. You know, I

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<v Speaker 1>think that's a great question.

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<v Speaker 3>And there are a lot of overhangs, I will say, though,

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<v Speaker 3>going into the end of the year and sort of

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<v Speaker 3>this holiday season. So I think The bar has been

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<v Speaker 3>sort of raised for Macy's having some really solid earnings

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<v Speaker 3>reports in the last few quarters. And so what they

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<v Speaker 3>say about that forward guidance is going to be really important.

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

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