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 1: Let's take a look now at some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg
Speaker 1: News reporter Judy LaGrue, and the earning story continues well
Speaker 1: right away on Monday when we hear from Hims and
Speaker 1: Hers after the closing bell. I mean, it feels like
Speaker 1: healthcare earnings have been going pretty good so far this season.
Speaker 1: Does that include telehealth, Judy, do you know tell health.
Speaker 3: Is having a really interesting sort of season with this
Speaker 3: earning season. But Hym's and Hers, I think is certainly
Speaker 3: a space to watch for a lot of investors. The
Speaker 3: company has beat EPs estimate six of the last ten quarters.
Speaker 3: It's you know, really seen a lot of growth recently. However,
Speaker 3: that growth is kind of slowing down right now. So
Speaker 3: reported subscriber growth was about thirty five percent sent for
Speaker 3: sixteen straight cores, but for the last two quarters growth
Speaker 3: has been nine percent and about thirteen percent perspectively, So
Speaker 3: I think what a lot of investors are really looking
Speaker 3: at is how Hymns ticker HIMS is responding to that
Speaker 3: slowing growth, So stock movement is also an interesting space
Speaker 3: to watch. The stock is down about nine percent this
Speaker 3: quarter alone, so definitely for investors looking to see Hymns
Speaker 3: and Hers earnings results and then how that stock will
Speaker 3: respond to the growth and report.
Speaker 1: You know, it's interesting, Judy. Ahead of this earnings we
Speaker 1: heard Hymns announce a new app with a doctor led
Speaker 1: AI native care experience. I think anytime anybody hears the
Speaker 1: letter's AI, their ears start to burg out.
Speaker 3: That's right, that's right, Nathan, And I think for Hymns
Speaker 3: and Hers, certainly trying to really push the envelope with
Speaker 3: respect to getting their consumers to stick with them, I
Speaker 3: think is certainly paramount for the company. One item as
Speaker 3: of note is that there was an FTC or is
Speaker 3: an FTC rather lawsuit against his and Hers. The plaintiffs
Speaker 3: are FTC, Utah and Los Angeles County, and the lawsuit
Speaker 3: is alleging that Hymns and Hers has misled customers into
Speaker 3: locking themselves into recurring subscriptions and that the company has
Speaker 3: shared private information with Meta and Snap despite saying that
Speaker 3: they were protective of customer privacy, So definitely, you know,
Speaker 3: I think investors will want to know what the company
Speaker 3: has to say about this. Certainly, the company has come
Speaker 3: out to say that the FTC lawsuit disregards substantial evidence,
Speaker 3: So look for analyst questions on that. Look for stock
Speaker 3: moves based on what management says about this. I really
Speaker 3: think it's a space to watch.
Speaker 1: Yeah, nobody likes illegal overhang over any company. The earning
Speaker 1: story continues on Tuesday and other tech name reporting in
Speaker 1: core Weave after Tuesday's close, putting a focus back on
Speaker 1: AI infrastructure after all the concerns about hyper scale spending.
Speaker 3: That's correct, Earnings from core Weave TICK or cr WV
Speaker 3: will show whether enormous EI demand can outweigh the heavy
Speaker 3: cost of data centers and debt. Right, so, the company
Speaker 3: is expected to report its highest revenue since their IPO
Speaker 3: in twenty twenty five. It's sort of Wall Street is
Speaker 3: expecting two point five billion in revenue this quarter, so
Speaker 3: you know, really looking at really how core Weave is
Speaker 3: managing that. And I think that Bloomberg Intelligence analysts really
Speaker 3: hit the nail on the head that say, when they
Speaker 3: wrote that core Weave's second quarter earnings will signal to
Speaker 3: investors whether AI demand remains stronger than their share price implies,
Speaker 3: and they cited that they feel like the share price
Speaker 3: is underperforming, so they'll be looking at revenue specifically for
Speaker 3: their earnings, and Blomberg Intelligence really believes that the revenue
Speaker 3: for Kroweve for the quarter could exceed guidance.
Speaker 1: Now that would be a pretty big turnaround at a
Speaker 1: time when, as you know, Corwave's kind of missed more
Speaker 1: often than not when it comes to earnings. Is the
Speaker 1: bar pretty high then for core Weave to outperform this
Speaker 1: time around?
Speaker 3: I mean you're right about that, Nathan. The company has
Speaker 3: missed EPs estimates four times out of the last five quarters.
Speaker 3: So yes, definitely looking at that, looking at revenue, looking
Speaker 3: at EPs, and really understanding from management. And again the
Speaker 3: earnings call and comments are really going to be big
Speaker 3: here where they see the company going. Analysts, on the
Speaker 3: other hand, are quite bullish. Twenty nine buys, eleven holes,
Speaker 3: three cells. So again we'll be listening to that earning
Speaker 3: call quite closely.
Speaker 1: Yes, absolutely, We're also going to be listening, I think
Speaker 1: to earnings from Kava they report on Tuesday as well.
Speaker 1: Is this one affected do you think by the produce
Speaker 1: scare that we've seen in fast food as opposed to casual.
Speaker 3: I mean, certainly anybody who touches lettuce is having a
Speaker 3: rough summer, I will say that. So, yes, we focusing
Speaker 3: on ticker Cava. That's right, And so for analysts, the
Speaker 3: earnings for Kava Group really need to show that customer traffic,
Speaker 3: restaurant profits, and new sore growth is remaining strong despite
Speaker 3: these headwinds we're seeing, right with the cyclospara, the parasite,
Speaker 3: and really understanding exactly what kind of slow down the
Speaker 3: company is seeing as a result of all of the
Speaker 3: headlines about food safety in general. The stock is up
Speaker 3: around thirteen percent this year, but down about eleven percent
Speaker 3: this month. And when we put that in comparison to
Speaker 3: names like Shakeshack, which is up about thirty percent this month, Dominoes,
Speaker 3: which is up about seventeen percent this month. Really, Kava
Speaker 3: I think it could represent in many respects close to
Speaker 3: the center of this issue with cyclospora, as it pertains
Speaker 3: to let us and produce as it gets served in
Speaker 3: fast casual settings.
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