WEBVTT - Broadcom Drops, CrowdStrike Falls, Five Below Tumbles After Beat as Retailer Frets Over Consumer

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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 1>Let's tick look some of the stocks on the move today.

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<v Speaker 1>We can do that with Isabell Lee, Cross Asset Reporter Foreberviews. Isabelle,

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<v Speaker 1>what are you looking at? I brought stocks that are

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<v Speaker 1>all read across the screen. I don't know if that's

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<v Speaker 1>symbolic of something. Not my mood for sure, But let's

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<v Speaker 1>start with Broadcom takeris Avgo shares are down back by

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<v Speaker 1>nearly fifteen percent. Again, it's really the outlook that underwhelmed investors.

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<v Speaker 1>It just honestly means that the effort that it's put

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<v Speaker 1>to gain ground is going slower than anticipated. The AI

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<v Speaker 1>semiconductor revenue will be sixteen billion in the fiscal third quarter.

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<v Speaker 1>Analysts projected seventeen point two billion on average, and we

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<v Speaker 1>have the CEO saying he will sell fifty six billion

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<v Speaker 1>in AI chips in the year that ends in October. Again,

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<v Speaker 1>that fell shot of estimate. So we also must remember

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<v Speaker 1>that they're trying to pivot to AI, but they're against

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<v Speaker 1>outsized investor competition, which sometimes makes you think should I

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<v Speaker 1>even try? But I guess you can't. You should always

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<v Speaker 1>try it, Yes, exactly, And they're also taking a bigger

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<v Speaker 1>role in helping finance purchase of chips. But yes, they're

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<v Speaker 1>down by nearly fifteen percent. That's the biggest job since

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<v Speaker 1>January twenty twenty five. All right, let's stick with the

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<v Speaker 1>tech theme because you have another decliner that's down quite large,

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<v Speaker 1>quite large. We're talking about Crowdstrack ticker CRWD down by

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<v Speaker 1>eight percent, and if you just put the ticker in

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<v Speaker 1>your terminal, you see a slew of upgrades, which is

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<v Speaker 1>honestly a little I mean, one would think that it's confusing,

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<v Speaker 1>but I guess they're just seeing it as a more

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<v Speaker 1>runway from here. So Crowdtrack is a security software company.

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<v Speaker 1>They reported first quarter result and gave outlook that kind

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<v Speaker 1>of met estimates, and you see a slew of Skotia banks.

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<v Speaker 1>So is Kihana's defense Stevie Cowan raising their price targets

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<v Speaker 1>from a range of seven hundred to a hundred, and

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<v Speaker 1>that's coming from some are around four hundred to five hundred.

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<v Speaker 1>So those are big increases. But even still investors again

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<v Speaker 1>are disappointed. I guess it's really all about the outlook

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<v Speaker 1>for here. And stock is down and we're seeing the

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<v Speaker 1>biggest job since at least February five below five below

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<v Speaker 1>ticker is five five, so I think they want their

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<v Speaker 1>chairs are down fourteen percent. We also see this one.

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<v Speaker 1>Now we're seeing some downgrades from them, at least when

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<v Speaker 1>it comes to price target. So the stock is down

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<v Speaker 1>that this is a discount retailer. They reported first quarter

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<v Speaker 1>results that beat expectations, and they boosted their full guidance

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<v Speaker 1>for the year. But again it's the profit guidance for

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<v Speaker 1>the full year that really spooked investors because they signaled

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<v Speaker 1>caution because they said that, you know, consumers might not

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<v Speaker 1>be as strong. We always talk about the K shape economy,

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<v Speaker 1>and I think this is the lower end of the K.

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<v Speaker 1>An interesting tangential note I read from Vincent Delaward of

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<v Speaker 1>Stone Neck saying that the upper K actually is splintering

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<v Speaker 1>to really yeah, which was I thought, Oh, but you know,

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<v Speaker 1>I mean even for people who are quote doing well,

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<v Speaker 1>they feel the pinch, like when you go to the

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<v Speaker 1>grocery or when you do things, everything just feels much

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<v Speaker 1>more expensive. But yes, we're talking about the lower K.

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<v Speaker 1>On this one because I think everything here is billow

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<v Speaker 1>five dollars.

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<v Speaker 2>Yeah, especially when your pay is not keeping pace with inflation. Yes,

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

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