WEBVTT - Silicon Lab Climbs on Deal; Lilly Sees Surging Sales; Chipotle Falls

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. This Stock Movers report

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg data.

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

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<v Speaker 2>today to a Lexus Christuffers is out front of Google

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<v Speaker 2>this afternoon the stock movers right now, Alexis, what do

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<v Speaker 2>you have.

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<v Speaker 3>I've got Silicon Labs for you. This stock not like

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<v Speaker 3>when we talk about a lot. The ticket symbol is SLAB.

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<v Speaker 3>SLAB up fifty percent, just to give you an idea.

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<v Speaker 3>It's based in Austin. Market cap four and a half billion,

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<v Speaker 3>one year return last year a snoozer, basically flat. The

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<v Speaker 3>big news today, Texas Instruments is going to buy Silicon

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<v Speaker 3>Labs for seven and a half billion dollars. That works

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<v Speaker 3>to about two hundred and thirty one dollars a share.

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<v Speaker 3>Transaction expected to close in the first half of next year.

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<v Speaker 3>And it looks like Silicon Labs investors like this deal.

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<v Speaker 3>If you're not familiar with that, Silicon Labs chips are

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<v Speaker 3>used and everything from smart home devices, industrial automation, battery storage,

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<v Speaker 3>and commercial lighting. And you know Texas Instruments. I checked

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<v Speaker 3>I mean, I guess no surprise stock is down about

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<v Speaker 3>three percent, but last week surprisingly strong sales forecast. I

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<v Speaker 3>think Texas Instruments is sometimes seen as a barometer, you know,

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<v Speaker 3>of sorts from much of the economy because of its

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<v Speaker 3>outsized role in the global supply chain. So there's your

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<v Speaker 3>big deal of the day. And I also got to

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<v Speaker 3>Eli Lilly.

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<v Speaker 4>Just second to guess who advised Silicon Labs from an

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<v Speaker 4>M and a perspective, Frank Quattrone. Oh my work, cattlest

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<v Speaker 4>partners still getting it done on silicon.

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<v Speaker 2>Here's to Frank, he and Mike may all worked together

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<v Speaker 2>a few years ago in Alexis.

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<v Speaker 3>Please all right, Eli Lilly up eight percent, absolutely obliterated.

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<v Speaker 3>Forecast expects sales to grow as much as twenty seven

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<v Speaker 3>percent this year. We know it's got those blockbuster weight

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<v Speaker 3>loss drugs Munjaro zep bound. Sales more than doubled in

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<v Speaker 3>those drugs year over year, and that's helping give it

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<v Speaker 3>an edge over rivals like Novo Nordis, which, by the way,

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<v Speaker 3>I want to mention down five percent said sales are

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<v Speaker 3>going to drop as much as thirteen percent this year.

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<v Speaker 3>If that doesn't underline, you know, price competition in the US. Also,

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<v Speaker 3>some of its generic versions of its blockbuster drugs are

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<v Speaker 3>coming to market, so weighing on Eli Lilly there. You

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<v Speaker 3>know President Trump also made cutting drug costs a key

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<v Speaker 3>priority of this administration, and we know that Eli Lilly

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<v Speaker 3>and Novo have both struck deals to offer lower prices

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<v Speaker 3>as a result. And I want to move over to

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<v Speaker 3>the food space. Oh yes, now we're talking Chipotelet. I

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<v Speaker 3>went there yesterday, a really lovely lunch on Third Avenue. Well,

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<v Speaker 3>there's going to be very pleased that you said that,

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<v Speaker 3>because this talk is down five percent today. I don't

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<v Speaker 3>know about you. I used to go more often. It's

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<v Speaker 3>been a while. I feel like it's lost its mojo.

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<v Speaker 3>You know last year, what was it with the food?

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<v Speaker 3>Prices have gone up and I have noticed that, but

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<v Speaker 3>also just the for a little while they weren't giving

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<v Speaker 3>you as much food.

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<v Speaker 4>Well they fixed that in a big way. Yeah, oh

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<v Speaker 4>my Nay went overboard. Now they overloaded.

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<v Speaker 3>Give me extra chicken. So Chipotle last year's stock down

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<v Speaker 3>thirty nine percent. They're trying to convince younger consumers, especially

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<v Speaker 3>because that's really their bread and butter, that there's value there. Right,

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<v Speaker 3>you got these budget conscious shoppers, where's the value? Also,

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<v Speaker 3>believe it or not, the weight loss drugs are giving

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<v Speaker 3>them a problem because people are consuming fewer calories and

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<v Speaker 3>just higher prices in general. Inflation hitting them as well.

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<v Speaker 3>They had that incident a couple of years ago, the

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<v Speaker 3>rash of food safety concerns that sort of tarnished their image.

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<v Speaker 3>They had a new CEO at the time. They seem

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<v Speaker 3>to have bounced back from that, but they can't. They

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<v Speaker 3>just cannot seem to get the traction they get the

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<v Speaker 3>foot traffic back into the stores.

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<v Speaker 4>At Child had great lunch there yesterday, High five and

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<v Speaker 4>those folks breakfast.

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<v Speaker 3>I don't think.

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<v Speaker 2>I just think some of the Pepsi announcement I believe

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<v Speaker 2>it was yesterday. Yeah, you know, Doritos and Cheetas and

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<v Speaker 2>the rest. They're going to lower the price, I know. Yeah,

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<v Speaker 2>I got to believe a Lexus they're going to lower

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<v Speaker 2>the price but also make the portion smaller.

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<v Speaker 3>Well, that shrink inflation, right, that's why you go and

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<v Speaker 3>get an MBA exactly.

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<v Speaker 1>Is yeah? Figure that out?

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<v Speaker 2>Yeah, I mean, is that where we are in terms

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<v Speaker 2>of affordability and purchasing.

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<v Speaker 3>Car Well, it's a sad state of affairs if it is,

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<v Speaker 3>but I think you're right.

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<v Speaker 1>This stock Movers report from Bloomberg Radio. Check back with

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