WEBVTT - Western Digital and Sandisk Drop; Diageo Forecast

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market. Harnessing the power of Bloomberg Data,

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<v Speaker 2>it take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Bailey Lipschultz. On a

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<v Speaker 3>morning of chip weakness in the macro. Bailey's here to

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<v Speaker 3>talk about what's behind it in the micro. Starting off

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<v Speaker 3>with Western Digital. Big drop for Western Digital this morning, Bailey.

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<v Speaker 4>Exactly, Nathan, you're looking into the stock down sixteen percent

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<v Speaker 4>this morning, Tiger WDC. This does come after the revenue

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<v Speaker 4>forecast for the first quarter missanalysts expectations, and on the

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<v Speaker 4>back of competitors Seagate crushing earnings not too long ago.

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<v Speaker 4>That's weighing on some of these bullish investors' mind. So

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<v Speaker 4>we're also seeing Seagate under pressure, down more than five percent.

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<v Speaker 4>Just looking at the Wall Street reaction from analysts, it

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<v Speaker 4>was a very painful evening cross the entire tech media

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<v Speaker 4>telecom landscape. From earnings, yes, fourth quarter revenue for Western

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<v Speaker 4>Digital actually looked quite good, but the guidance for one

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<v Speaker 4>Q and what they're talking about for gross margin going forward,

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<v Speaker 4>weighing on expectations, even just calling out the fact that

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<v Speaker 4>when you look at it, Canter Fitzgerald one of the

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<v Speaker 4>analysts that was kind of beating the drum saying that

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<v Speaker 4>this could be a buying opportunity, basically saying that there's

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<v Speaker 4>no change to their thesis, but calling out the fact

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<v Speaker 4>that the top line growth and gross market out looked

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<v Speaker 4>was disappointing, albeit temporary in their perspective. Also, just a

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<v Speaker 4>bit of numbers for those investors listening, they see first

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<v Speaker 4>quarter revenue between four and four point.

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<v Speaker 1>Two billion dollars.

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<v Speaker 4>Estimates were for four point two billion dollars, and then

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<v Speaker 4>just a GPS had.

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<v Speaker 1>Kind of come in above what Wall Street was looking for.

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<v Speaker 4>But again, what the Cell side has in their models

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<v Speaker 4>and what the investors who had bid up these shares

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<v Speaker 4>over the last few days and weeks not really in line.

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<v Speaker 4>So it looks like she's heading back to where they

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<v Speaker 4>were at the tail end of July.

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<v Speaker 3>Now it looks like we're seeing a sell off in

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<v Speaker 3>sand Disk shares as well after their earnings. Is this

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<v Speaker 3>kind of a similar story when it comes to them.

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<v Speaker 4>Similar story, Nathan, You got to remember that these were

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<v Speaker 4>one company, not too long ago. So actually the creation

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<v Speaker 4>of sand Disc was formed out of Western Digital. So

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<v Speaker 4>SanDisk ticker SNDK down ten percent, and that's a big

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<v Speaker 4>move for a stock that has been on quite the

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<v Speaker 4>tiar it is, you know, before the today's move is

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<v Speaker 4>calculated two hundred billion dollars market cap, but on the

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<v Speaker 4>last twelve months, this is the stock that's up more

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<v Speaker 4>than three thousand percent. But this did come after disappointing

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<v Speaker 4>guidance as they talk about their nand flash chips. When

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<v Speaker 4>you look at what Wall Street analysts were really talking

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<v Speaker 4>about again, similarly, near term sentiment much weaker than expected.

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<v Speaker 4>We did see a bit of a bid for some

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<v Speaker 4>of these semiconductor names again last week when Cgate beat expectations.

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<v Speaker 4>So now when you're talking about sand Disk, similar to

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<v Speaker 4>Western Digital, it becomes a question of where's the durable growth.

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<v Speaker 4>What does twenty twenty eight and beyond actually look like

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<v Speaker 4>ordanly in the quarters to come, How do we actually

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<v Speaker 4>get there?

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<v Speaker 3>Yeah, it's kind of wild to be talking about chip

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<v Speaker 3>weakness this morning and talking about distillery strength after the

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<v Speaker 3>results we got this morning from Diagio. I mean, it

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<v Speaker 3>seems like the beverage industry has been hit pretty hard.

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<v Speaker 3>But I guess that's not what we're seeing the earnings

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<v Speaker 3>this morning.

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<v Speaker 1>No, not what we're seeing the earnings this morning.

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<v Speaker 4>Diagio trades overseas but does have eighty hors listened to

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<v Speaker 4>here take your DEEO, the owner and maker of Johnny

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<v Speaker 4>Walker srom You're and off Captain Morgan solid net sales forecast,

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<v Speaker 4>So they did. Company did layout plans to cut costs

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<v Speaker 4>by quite a bit, so total restructuring costs one point

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<v Speaker 4>two billion dollars.

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<v Speaker 1>They're actually seeing full fistfully year twenty seven.

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<v Speaker 4>Organic net sales growth broadly flat, so hanging in there.

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<v Speaker 4>But overseas those shares at one point did jump eleven percent,

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<v Speaker 4>now settling in up about six and a half percent.

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<v Speaker 4>Still good to trade at the highest level since early February.

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<v Speaker 4>Eighty hours here up about six and a half percent

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<v Speaker 4>as well.

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