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 2: it take a look at some stocks on the move today.
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Bailey Lipschultz. On a
Speaker 3: morning of chip weakness in the macro. Bailey's here to
Speaker 3: talk about what's behind it in the micro. Starting off
Speaker 3: with Western Digital. Big drop for Western Digital this morning, Bailey.
Speaker 4: Exactly, Nathan, you're looking into the stock down sixteen percent
Speaker 4: this morning, Tiger WDC. This does come after the revenue
Speaker 4: forecast for the first quarter missanalysts expectations, and on the
Speaker 4: back of competitors Seagate crushing earnings not too long ago.
Speaker 4: That's weighing on some of these bullish investors' mind. So
Speaker 4: we're also seeing Seagate under pressure, down more than five percent.
Speaker 4: Just looking at the Wall Street reaction from analysts, it
Speaker 4: was a very painful evening cross the entire tech media
Speaker 4: telecom landscape. From earnings, yes, fourth quarter revenue for Western
Speaker 4: Digital actually looked quite good, but the guidance for one
Speaker 4: Q and what they're talking about for gross margin going forward,
Speaker 4: weighing on expectations, even just calling out the fact that
Speaker 4: when you look at it, Canter Fitzgerald one of the
Speaker 4: analysts that was kind of beating the drum saying that
Speaker 4: this could be a buying opportunity, basically saying that there's
Speaker 4: no change to their thesis, but calling out the fact
Speaker 4: that the top line growth and gross market out looked
Speaker 4: was disappointing, albeit temporary in their perspective. Also, just a
Speaker 4: bit of numbers for those investors listening, they see first
Speaker 4: quarter revenue between four and four point.
Speaker 1: Two billion dollars.
Speaker 4: Estimates were for four point two billion dollars, and then
Speaker 4: just a GPS had.
Speaker 1: Kind of come in above what Wall Street was looking for.
Speaker 4: But again, what the Cell side has in their models
Speaker 4: and what the investors who had bid up these shares
Speaker 4: over the last few days and weeks not really in line.
Speaker 4: So it looks like she's heading back to where they
Speaker 4: were at the tail end of July.
Speaker 3: Now it looks like we're seeing a sell off in
Speaker 3: sand Disk shares as well after their earnings. Is this
Speaker 3: kind of a similar story when it comes to them.
Speaker 4: Similar story, Nathan, You got to remember that these were
Speaker 4: one company, not too long ago. So actually the creation
Speaker 4: of sand Disc was formed out of Western Digital. So
Speaker 4: SanDisk ticker SNDK down ten percent, and that's a big
Speaker 4: move for a stock that has been on quite the
Speaker 4: tiar it is, you know, before the today's move is
Speaker 4: calculated two hundred billion dollars market cap, but on the
Speaker 4: last twelve months, this is the stock that's up more
Speaker 4: than three thousand percent. But this did come after disappointing
Speaker 4: guidance as they talk about their nand flash chips. When
Speaker 4: you look at what Wall Street analysts were really talking
Speaker 4: about again, similarly, near term sentiment much weaker than expected.
Speaker 4: We did see a bit of a bid for some
Speaker 4: of these semiconductor names again last week when Cgate beat expectations.
Speaker 4: So now when you're talking about sand Disk, similar to
Speaker 4: Western Digital, it becomes a question of where's the durable growth.
Speaker 4: What does twenty twenty eight and beyond actually look like
Speaker 4: ordanly in the quarters to come, How do we actually
Speaker 4: get there?
Speaker 3: Yeah, it's kind of wild to be talking about chip
Speaker 3: weakness this morning and talking about distillery strength after the
Speaker 3: results we got this morning from Diagio. I mean, it
Speaker 3: seems like the beverage industry has been hit pretty hard.
Speaker 3: But I guess that's not what we're seeing the earnings
Speaker 3: this morning.
Speaker 1: No, not what we're seeing the earnings this morning.
Speaker 4: Diagio trades overseas but does have eighty hors listened to
Speaker 4: here take your DEEO, the owner and maker of Johnny
Speaker 4: Walker srom You're and off Captain Morgan solid net sales forecast,
Speaker 4: So they did. Company did layout plans to cut costs
Speaker 4: by quite a bit, so total restructuring costs one point
Speaker 4: two billion dollars.
Speaker 1: They're actually seeing full fistfully year twenty seven.
Speaker 4: Organic net sales growth broadly flat, so hanging in there.
Speaker 4: But overseas those shares at one point did jump eleven percent,
Speaker 4: now settling in up about six and a half percent.
Speaker 4: Still good to trade at the highest level since early February.
Speaker 4: Eighty hours here up about six and a half percent
Speaker 4: as well.
Speaker 2: This stock mover report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app