WEBVTT - Microsoft Agreement, Adobe Beats, RH Trims

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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 3>Let's take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Haker, joined by Bloomberg's Valerie Titel and Valerie

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<v Speaker 3>I'm thinking Microsoft is going to be a stock to

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<v Speaker 3>watch today, Wondering if investors are breathing a bit of

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<v Speaker 3>a CYHB relief after some of the latest developments around

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<v Speaker 3>the future of open Ai.

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<v Speaker 1>Good morning, Hey, good morning, Nathan, Happy Friday to you. Yes,

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<v Speaker 1>we are seeing Microsoft have a decent rally this morning.

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<v Speaker 1>It's up one point three percent in pre market trade.

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<v Speaker 1>It's on the back of as you mentioned, open Ai

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<v Speaker 1>and Microsoft announced in a joint statement yesterday that they

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<v Speaker 1>have reached preliminary terms on a revised partnership. Comes after

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<v Speaker 1>some painstaking negotiations between the two, but the announcement has

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<v Speaker 1>calmed fears about the turmoil in that Microsoft's relationship with

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<v Speaker 1>open Ai. Remember, open ai is currently a non profit

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<v Speaker 1>and Microsoft is currently their biggest backer. But perhaps a

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<v Speaker 1>restructuring of open ai, which does deal with a nonprofit

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<v Speaker 1>getting one hundred billion dollars of its equity stake. Maybe

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<v Speaker 1>another signal that chatgybt maker is coming closer.

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<v Speaker 4>To converting itself into a for profit company.

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<v Speaker 3>Well, staying in the tech space, we just got some

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<v Speaker 3>earnings from Adobe. Apparently you say AI, you say good

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<v Speaker 3>things about AI, and the stock just jumps.

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<v Speaker 1>Well, Adobe is just shy of four percent in pre

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<v Speaker 1>market trade. They did ease investor concerns that they are

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<v Speaker 1>dealing with tough competition from new AI entrants into the space. Remember,

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<v Speaker 1>Adobe is the maker of software, but more for creative professionals.

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<v Speaker 1>They beat on expectations when it comes to earnings and

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<v Speaker 1>raised their full year guidance. Analysts were also quite positive

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<v Speaker 1>on their upgrade to their annual recurring revenue metric, being

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<v Speaker 1>that software big, a big thing that software companies track.

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<v Speaker 4>It's Adobe up nearly four percent.

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<v Speaker 3>Okay, moving from AI to OURH formerly known as Restoration Hardware.

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<v Speaker 3>Why has that stock got your attention this morning?

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<v Speaker 1>It's down nine point nine All that will do it,

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<v Speaker 1>that's why.

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<v Speaker 4>But there was some.

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<v Speaker 1>Colorful language from the CEO, which is also attracted attention.

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<v Speaker 1>But they announced that they were cutting their sales out

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<v Speaker 1>look for the full year. They cited mounting impacts from

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<v Speaker 1>new US tariffs that have resulted in product delays. But then,

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<v Speaker 1>for the second time this year, the CEO on the

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<v Speaker 1>earnings call gave some quite colorful language as to why

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<v Speaker 1>they need to discount their products, saying that the furniture

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<v Speaker 1>industry will go broke if they don't offer discounts to

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<v Speaker 1>stay afloat amid a weak housing market. He called the

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<v Speaker 1>housing market the third year of the worst housing market

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<v Speaker 1>he's seen in his thirty eight years in this industry.

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<v Speaker 1>So housing having an impact on the luxury furniture space,

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<v Speaker 1>with restoration hardware down nearly ten percent.

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<v Speaker 3>And we're seeing some big impact this morning as well

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<v Speaker 3>for Warner Brothers. Discovery moving higher and maybe having to

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<v Speaker 3>make its name even longer.

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<v Speaker 2>Well.

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<v Speaker 1>It rose yesterday on a speculation that Paramount sky Dance

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<v Speaker 1>was about to make an offer for the company. It

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<v Speaker 1>rose nearly thirty percent and is rising another five and

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<v Speaker 1>a half percent so far in pre market trade. Now,

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<v Speaker 1>this has got a lot of interesting things going on.

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<v Speaker 1>Paramount sky Dance. It was a studio that was taken

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<v Speaker 1>over by independent filmmaker David Ellison, who is the father

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<v Speaker 1>of Larry Ellison, who is the co founder of Oracle,

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<v Speaker 1>who has saw that ginormous jump in net.

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<v Speaker 4>Worth after that Oracle rally.

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<v Speaker 1>Warner Brothers enterprise value stends it around seventy billion, and

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<v Speaker 1>that's basically what Larry Ellison has made in his net

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<v Speaker 1>worth with the Oracle rally this year. But the very

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<v Speaker 1>important part about this is that the paramount bid is

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<v Speaker 1>a bid for the entire company, and Warner Brothers just

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<v Speaker 1>a few months ago was considering splitting into.

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<v Speaker 4>Two different publicly traded companies.

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<v Speaker 1>So that's the reason why the aggressive move higher for

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<v Speaker 1>Warner Brothers today.

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<v Speaker 3>And I know you meant to say that David Elson

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<v Speaker 3>is the son of Larry Ellison, Oracle co founders, so

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<v Speaker 3>just to clarify that.

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<v Speaker 2>The Stockmover's report from Bloomberg Radio. Check back with us

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<v Speaker 2>throughout the day for the latest roundup of companies making

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<v Speaker 2>news on Wall Street and for the latest market moving headlines.

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