WEBVTT - Oracle Projects Strong Growth, Lockheed Drops, Starbucks Potential China Stake

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<v Speaker 1>Bloomberg Audio Studios podcasts, radio news.

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<v Speaker 2>The Stock Movers podcast, 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 some stocks on the move today.

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<v Speaker 3>Tridy Styles Pristina Kino, she's the managing editor of Bloomberg

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<v Speaker 3>Markets Live blog and what do you look? What were

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<v Speaker 3>you looking at today? What were the movers that go well?

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<v Speaker 1>Well, David, we had some big moves post market for

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<v Speaker 1>Oracle because we did just get them reporting after the

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<v Speaker 1>malso Oracle ticker o RCL. Biginins in the post market,

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<v Speaker 1>up seven percent, run seven percent, and a big beat

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<v Speaker 1>on that. Four quarter adjusted revenue that came in at

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<v Speaker 1>fifteen point nine billion in the estimate was fifteen point

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<v Speaker 1>six billion, but that's actually an eleven percent increase from

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<v Speaker 1>a year earlier. Cloud services and license support revenue also

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<v Speaker 1>a standout, gained their eleven point seven billion, which is

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<v Speaker 1>a fourteen percent increase from year and year, and the

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<v Speaker 1>forward heightens from the company also looking very optimistic. They're

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<v Speaker 1>seeing fiscal year twenty twenty six for total cloud growth

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<v Speaker 1>over forty percent. In terms of that growth rate, so

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<v Speaker 1>oracill CEO Saffracats, saying that twenty twenty six will be

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<v Speaker 1>an even better year for them.

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<v Speaker 3>Struck by the optimism of this report. I mean, there's

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<v Speaker 3>been so much uncertainty and negativism here to see a

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<v Speaker 3>report where despite all of the uncertainty surrounding trade and

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<v Speaker 3>the like, this is a company that's optimistic.

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<v Speaker 4>We're seeing a pop year. We're really seeing a pop here.

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<v Speaker 4>We can't shares her up about five point eight percent

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<v Speaker 4>year to date, and it's just really as we're looking

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<v Speaker 4>at the broader tech sector and the performance there, it's

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<v Speaker 4>really interesting to see this forward guide that is positive

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<v Speaker 4>and optimistic for street estimates. But there is a name

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<v Speaker 4>in the red that you're looking at, and that's the

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<v Speaker 4>FEDS sector. I know, you know we have to talk

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<v Speaker 4>about the names in the red two and the decliners.

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<v Speaker 3>Yes, exactly.

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<v Speaker 1>So that's lockeed Martin take her LMT and in the

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<v Speaker 1>regular training session, that's one of the biggest decliners on

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<v Speaker 1>the index. Today, shares down more than four percent, and

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<v Speaker 1>that is because of the developments regarding the Air Force

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<v Speaker 1>and its orders for the signature F thirty fives that

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<v Speaker 1>Lockheed is known for. The Air Force cutting its ordered

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<v Speaker 1>down by half. It's now just ordering twenty four planes

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<v Speaker 1>instead of the forty eight that was forecast last year.

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<v Speaker 1>The Air Force Corse is the biggest customer for Lockheed.

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<v Speaker 1>And you know, those cuts really reflecting the efforts by

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<v Speaker 1>Defense Secretary Pete Hegseth to reduce projected military spending by

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<v Speaker 1>eight percent over the next five years.

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<v Speaker 3>Yeah, he was up on Capitol Hill today talking a

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<v Speaker 3>lot about the cuts that he's identified that doughe is

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<v Speaker 3>identified in the Pentagon budget. We're still talking about a

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<v Speaker 3>fraction of this massive, almost trillion dollar budget. But what

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<v Speaker 3>we're seeing with Lockheed today certainly highlighting the fact that

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<v Speaker 3>this is an administration and a Pentagon that is willing

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<v Speaker 3>to take a second look at some programs that have

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<v Speaker 3>been the beneficiary of a lot of government investment and

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<v Speaker 3>spending for for a long time. Let's go back to

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<v Speaker 3>the green, another company that did well.

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<v Speaker 2>Exactly, We'll get out of the red into the green exactly.

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<v Speaker 1>Yeah, I figured i'd give you the sandwich method today.

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<v Speaker 1>So let's finish off with a stock in the green

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<v Speaker 1>and regular trading. That is Starbus Sticker SPUX. So that

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<v Speaker 1>was up more than four percent in regular trading, and

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<v Speaker 1>that was after The Financial Times published an interview with

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<v Speaker 1>CEO Brian Nicol, who was saying that a Starbucks is

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<v Speaker 1>looking at a possible sale of a steak in its

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<v Speaker 1>China business and that has drawn quote a lot of interest.

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<v Speaker 1>So apparently Starbucks is searching for a partner and interested

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<v Speaker 1>in expanding to chain in China. So they currently have

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<v Speaker 1>around eight thousand stores. They're looking at an expansion to

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<v Speaker 1>twenty thousand stores, so more than double. But he did

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<v Speaker 1>also say that they're in a rush for a deal

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<v Speaker 1>and they want to maintain a quote meaningful steak in

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<v Speaker 1>the operation.

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<v Speaker 4>And while stock is on about four and a half

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<v Speaker 4>percent so far this year, CEO Brian Nichol has really

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<v Speaker 4>been trying to do a turnaround story here for Starbucks

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<v Speaker 4>to trying to increase foot traffic. And I was browsing

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<v Speaker 4>today and I saw that apparently they're launching a protein drink.

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<v Speaker 1>That's right, Yeah, so Stig's protein drink catering to the

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<v Speaker 1>gym bunnies out there, right, yeah, yeah, because you need

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<v Speaker 1>your protein and your caffeine. Get it all the starbus.

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<v Speaker 4>Would you guys try it?

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<v Speaker 3>I would maybe try it once. I'd be sold on more.

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<v Speaker 3>I would be like seeking it out. But this is

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<v Speaker 3>a company that, like Howard Schultz, continues to loom large.

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<v Speaker 3>Brian Nichols, again, you've said trying to do this turnaround.

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<v Speaker 3>How difficult does that likely to be for this company?

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<v Speaker 1>I mean, it really is very much dependent on consumer

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<v Speaker 1>attitudes and sentiment, right, I mean, especially in the US

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<v Speaker 1>that's a little bit more unpredictable. But you can see

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<v Speaker 1>that the company is really trying to leverage and its

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<v Speaker 1>presence outside of the US. China has been a real

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<v Speaker 1>focal point for them. They're also, you know, doing a

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<v Speaker 1>lot of other things like increasing their tea based offerings.

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<v Speaker 1>We heard about that and you know over the past week.

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<v Speaker 1>So that's something that they're really trying to do to

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<v Speaker 1>be able to compete more internationally, perhaps as a response

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<v Speaker 1>to maybe a little bit more uncertain a picture Back

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<v Speaker 1>here at home.

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<v Speaker 2>The Stock Movers podcast from Bloomberg Radio. Check back with

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