WEBVTT - AMD Falls; Super Micro Tumbles; Humana Dips

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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 at some stocks on the move

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<v Speaker 1>today on Nathan Hager joined by Bloomberg's Dan Curtis on

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<v Speaker 1>another morning where chip stocks are in focus, Dan, and

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<v Speaker 1>Advanced micro Devices is top of mind.

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<v Speaker 3>Good morning, Good morning, Yeah, Advanced micro Devices, as you mentioned,

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<v Speaker 3>it is a chip stock that stock right now is

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<v Speaker 3>down nearly six percent in pre market. It came out

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<v Speaker 3>with earnings after hours, and really the timing of these

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<v Speaker 3>earnings is a bit tough for the company itself. We've

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<v Speaker 3>had that chip sell off which you've been talking about,

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<v Speaker 3>weighing on the space. These high flyers, these earning have

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<v Speaker 3>put these earnings reports under more scrutiny. So I think

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<v Speaker 3>some other earnings that might have been shrugged off and

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<v Speaker 3>some other warnings that might have been shrugged off earlier

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<v Speaker 3>are getting a lot of attention this morning. That's really

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<v Speaker 3>really playing out in the pre market right now. So

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<v Speaker 3>looking specifically at AMD, it reported third quarter ear revenue

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<v Speaker 3>of nine point twenty five billion dollars last night, that's

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<v Speaker 3>thirty six percent growth versus the prior year. It beat

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<v Speaker 3>estimates at top to the company's high end of its guidance,

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<v Speaker 3>and even earnings itself came in above Wall Street estimates,

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<v Speaker 3>but again a lot of scrutiny on these names. The

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<v Speaker 3>guidance is causing some concern on Wall Street. The ceoc's

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<v Speaker 3>revenue for the current quarter up twenty five percent, which

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<v Speaker 3>does sound strong, but it's lower than the sixty percent

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<v Speaker 3>growth that AI Darling in Nvidia is expected to post

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<v Speaker 3>in a similar period. AMD has signed agreements with open

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<v Speaker 3>Ai and Oracle to build out AI computing, but again

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<v Speaker 3>fine tooths comb over these the forward guidance could be

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<v Speaker 3>a signal that the payoff from the deals may not

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<v Speaker 3>come as soon as expected.

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<v Speaker 1>Yeah, it looks like the scrutiny is spreading beyond chips

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<v Speaker 1>into the broader tech space given the results that we

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<v Speaker 1>saw from super micro Computer as well Dan.

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<v Speaker 3>Exactly another AI related company, and this one makes servers

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<v Speaker 3>ticker SMCI. That stock is down nearly nine percent in

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<v Speaker 3>the pre market. The company reported first quarter revenue of

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<v Speaker 3>five billion dollars that was well below the six to

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<v Speaker 3>seven billion the company had expected to make. A third

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<v Speaker 3>of the revenue came from GPU related AI servers, but

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<v Speaker 3>sales fell fifteen percent from the year prior as some

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<v Speaker 3>shipments were delayed. The company did raise revenue guidance for

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<v Speaker 3>its current fiscal year by nearly ten percents. That might

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<v Speaker 3>come with smaller margins as it provides more services for

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<v Speaker 3>some of its AI megadeals. The outlook for earnings and

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<v Speaker 3>margins is still murky, and the CEO noted on the

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<v Speaker 3>call that competition the space remains intense.

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<v Speaker 2>Now.

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<v Speaker 1>This morning, we got earnings from Humana, and it's not

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<v Speaker 1>looking like that's giving much help to sentiment either.

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<v Speaker 3>Dan It's not. The company reported ad just a third

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<v Speaker 3>quarter earnings of three dollars and twenty four cents that's

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<v Speaker 3>above the Wall Street estimates. The beat was aided by

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<v Speaker 3>stronger than expected revenue from Medicare members. Medicaid trailed estimates.

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<v Speaker 3>Rising healthcare costs are weighing on the company's profit. Ninety

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<v Speaker 3>one percent of the revenue from premiums went back into

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<v Speaker 3>medical care, a higher proportion than the previous report, While

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<v Speaker 3>the twelve percent gains this year are nowhere near those

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<v Speaker 3>of the AI names we discussed earlier. It's a relatively

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<v Speaker 3>high flyer in the health insurance space. Two of its

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<v Speaker 3>biggest peers, Human and Elements, are down thirty three to

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<v Speaker 3>twelve percent, respectively so far this year. Humana has been

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<v Speaker 3>shielded from expiring health plans from so called Obamacare, and

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<v Speaker 3>the company expects fewer members to drop Medicare advantage plans

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<v Speaker 3>than previously forecasted. But as a relative high flyer, again,

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<v Speaker 3>it's just the scrutiny that the market is bringing out

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<v Speaker 3>amid this somewhat bearish pullback.

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<v Speaker 1>I'm sensing a trend in your report this morning, and

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<v Speaker 1>I mean looking at the results as well from Pinterest

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<v Speaker 1>this morning. That stock is getting crushed.

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<v Speaker 3>Yeah, it's the social media company. It's expecting revenue to

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<v Speaker 3>come in around one point three billion dollars. This is

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<v Speaker 3>a bit of a tariff play, though the CEO sounded

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<v Speaker 3>the alarm that tariffs are impacting home furnishing. That's created

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<v Speaker 3>broad fullback and retailer spending across the United States and Canada,

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<v Speaker 3>where Pinterest gets most of its revenue from. Pinterest has

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<v Speaker 3>strong exposure to retail as its platform is used for

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<v Speaker 3>home decor, and that stock is down nearly twenty percent

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<v Speaker 3>in pre.

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

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