WEBVTT - SAP Lower, Applied Nutrition Gains, Ambu Drops

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<v Speaker 1>Bloomberg Audio Studios. Podcasts. Radio.

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<v Speaker 2>News.

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<v Speaker 1>The Stock Movers Report. Your roundup of companies making moves

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<v Speaker 1>in the stock market. Harnessing the power of Bloomberg data.

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<v Speaker 2>Let's take a look at some of the stocks on

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<v Speaker 2>the move today here in Europe. I'm Caroline Hepkin. I'm

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<v Speaker 2>joined by Bloomberg reporter Chloe Millay. Good morning, Chloe. Let's

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<v Speaker 2>start with the software company SAP. Their shares are lower today.

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<v Speaker 2>for a particular reason.

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<v Speaker 1>Why?

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<v Speaker 3>Yeah. So, it's kind of the entire sector that is

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<v Speaker 3>a little bit weaker this morning. SAP being, of course,

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<v Speaker 3>the main one because that's the big software company in Europe.

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<v Speaker 3>But we are seeing this on some read across from

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<v Speaker 3>the U.S. and some U.S. earnings. So, we had disappointing

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<v Speaker 3>results yesterday from Intuit and Zoom. So, Intuit is a

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<v Speaker 3>tax preparation software company and it fell quite a lot

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<v Speaker 3>in the U.S. yesterday because of a weak outlook that

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<v Speaker 3>according to analysts, really signaled disruption going forward for the company.

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<v Speaker 3>And then Zoom also fell, but a little bit less dramatically, maybe,

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<v Speaker 3>because the forecast for the third quarter was also softer

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<v Speaker 3>than expected, despite an expanded product lineup for the company.

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<v Speaker 3>That's all seen as not very encouraging for European software

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<v Speaker 3>and the European software sector as a whole. So, we

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<v Speaker 3>had companies like Sage Group, down quite a lot this morning.

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<v Speaker 3>And then, of course, the big one being SAP, which

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<v Speaker 3>was weighed down by this read across, but then also

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<v Speaker 3>by a downgrade by UBS. So, not a great day

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<v Speaker 3>overall for software in Europe. And this might revive some

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<v Speaker 3>of those concerns that we had throughout the beginning of

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<v Speaker 3>this year around AI displacement for those companies as well.

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<v Speaker 2>Okay, so that's SAP. Now to Applied Nutrition, the protein

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<v Speaker 2>powder company bulking up its guidance.

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<v Speaker 1>Yes, indeed.

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<v Speaker 3>There's a lot of pun potential for those companies. But yeah,

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<v Speaker 3>Applied Nutrition makes protein shakes, workout supplements, etc., It has

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<v Speaker 3>upgraded its guidance, as you.

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<v Speaker 2>Mentioned, this morning.

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<v Speaker 3>So fiscal 2026, which ended in July, was ahead of expectations.

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<v Speaker 3>It also expects a very strong 2027 and expects that

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<v Speaker 3>to be ahead of estimates as well. And as I've mentioned,

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<v Speaker 3>there was exceptional trading momentum and they expect it to

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<v Speaker 3>continue going into this new financial year because the company

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<v Speaker 3>is expanding in the U.S. market. It's also partnering with

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<v Speaker 3>a bunch of new retailers. So, there's a lot of opportunity.

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<v Speaker 2>There for further growth.

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<v Speaker 3>Obviously, Apparel Nutrition is one of those big beneficiaries of

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<v Speaker 3>this ongoing trend for protein. That has been driven both

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<v Speaker 3>by kind of a general wellness trend with so many

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<v Speaker 3>big food companies integrating more protein into their products and

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<v Speaker 3>then also the rising uptake of GLP-1s kind of across

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<v Speaker 3>the world. Another big beneficiary of that has been Galambia,

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<v Speaker 3>which also is a bigger competitor to Applied Nutrition, also

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<v Speaker 3>makes those protein shakes, workout supplements, etc., And earlier this month,

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<v Speaker 3>they also raised its guidance on the back of this.

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<v Speaker 3>So this is quite a niche sector with only really

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<v Speaker 3>a couple of companies that are important to keep track of.

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<v Speaker 3>But it's a really important sector. It's one that's doing

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<v Speaker 3>very well at the moment. And Applied Nutrition has confirmed

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<v Speaker 3>that today.

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<v Speaker 1>Okay.

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<v Speaker 2>And lastly, Ambu, which is a medical devices company, lower

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<v Speaker 2>after missing estimates. Tell us a bit more.

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<v Speaker 1>Yeah.

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<v Speaker 3>So, quite disappointing results from Ambu this morning. And that

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<v Speaker 3>was followed by Nordea downgrading the company. And so, those

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<v Speaker 3>disappointing results and that downgrade, that has led the shares

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<v Speaker 3>sinking this morning. We're seeing a really, really massive drop.

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<v Speaker 3>The main issue on the results was that there was

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<v Speaker 3>a really big miss on profit, excluding tariff refunds. And so,

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<v Speaker 3>that means that the company will need to really sort

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<v Speaker 3>of step up to meet its guidance. And Nordea, which

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<v Speaker 3>downgraded the stock, said that there were no signs of

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<v Speaker 3>any inflection point when it comes to some of the segments,

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<v Speaker 3>including the urology and the ENT segment for that company. So,

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<v Speaker 3>the earnings outlook does not look too rosy for that company.

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<v Speaker 3>And we can see that reflected in that huge drop

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<v Speaker 3>in the shares this morning.

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