WEBVTT - Oracle Falls on Disappointing Cloud Sales; Eli Lilly Jumps; Gemini Rallies

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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 take a look at some stocks on the move today.

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<v Speaker 1>I'm Nathan Hager, joined by Bloomberg's Valerie Titel. Starting off

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<v Speaker 1>with the stock that is putting a weight on the

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<v Speaker 1>broader market this morning. A lot of investors wondering whether

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<v Speaker 1>Oracle is going to be living up to its name

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<v Speaker 1>when it comes to AI concerns. Valerie, good morning.

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<v Speaker 3>Yeah, Oracle really sinking at the moment, down eleven and

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<v Speaker 3>a half percent after earnings showed a decent jump in

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<v Speaker 3>AI spending, a forty percent rise in capex guidance to

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<v Speaker 3>now fifty billion for next year. Alongside that, they gave

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<v Speaker 3>a cash burn in the previous quarter that was ten

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<v Speaker 3>billion dollars. The revenue growth was strong, but it's not accelerating,

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<v Speaker 3>and it's making the market nervous over just a possible

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<v Speaker 3>mismatch over the timing and scale of the return on

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<v Speaker 3>this massive investment in cloud that Oracle has made to

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<v Speaker 3>fulfill the large contracts is signed with Open AI. Is

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<v Speaker 3>that return on investment going to come in time to

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<v Speaker 3>service the near one hundred billion dollars of debt that

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<v Speaker 3>is now in the company's name. So Oracle down eleven

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<v Speaker 3>point six percent and dragging down the wider Nasdaq with it.

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<v Speaker 1>Yeah, So what's the broader read through for some of

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<v Speaker 1>the other big tech stocks.

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<v Speaker 3>Well, if you look at Nvidia, who's kind of the

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<v Speaker 3>darling of the AI trade, the main AI chip maker,

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<v Speaker 3>world's most valuable company, it's down one point seven percent.

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<v Speaker 3>And then on the back of that, if you look

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<v Speaker 3>at other neo clouds, so other competitors to Oracle in

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<v Speaker 3>this space, Core Weave is down three point eight percent,

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<v Speaker 3>and a bs is another stock that is in the

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<v Speaker 3>neocloud space, it's also in the red. And then if

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<v Speaker 3>we look wider at global markets, we had soft Bank,

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<v Speaker 3>the prominent Japanese tech investor who's heavily invested in open Ai.

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<v Speaker 3>Those shares were down near eight percent in Tokyo trade.

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<v Speaker 3>And here in Europe, SAP, one of the biggest tech

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<v Speaker 3>companies in Europe, was down two point four percent. So

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<v Speaker 3>a lot of big tech names causing some drags, and

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<v Speaker 3>some of the major indices across the globe.

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<v Speaker 1>Got to move from the AI trade to the obesity

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<v Speaker 1>trade because it looks like a big name there has

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<v Speaker 1>made some significant news.

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<v Speaker 2>Eli Lilly Eli Lilly.

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<v Speaker 3>Out with results of phase three trials of their GLP

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<v Speaker 3>one obesity shot and man it is positive. Lily shares

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<v Speaker 3>up two point seven percent, the body weight being reduced

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<v Speaker 3>by a whopping twenty three percent over sixty eight weeks

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<v Speaker 3>in the study using their new obesity shot, and results

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<v Speaker 3>exceeded expectations so by so much that some patients in

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<v Speaker 3>the study lost so much weight they decided to drop

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<v Speaker 3>out of the trial, according to Eli Lillly. So Eli

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<v Speaker 3>Lilly shares are gaining off the back of this positive

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<v Speaker 3>of results from their phase three trials of their obesity shot,

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<v Speaker 3>and very interesting, Nova Nordis one of their main competitors.

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<v Speaker 3>Those shares are all headed higher still this morning, so

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<v Speaker 3>it's not necessarily denting their shares their main competitor, Nova Nordis,

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<v Speaker 3>but I have to note Nova Nordisk has been on

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<v Speaker 3>a assive backfoot last eighteen months.

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<v Speaker 1>Got to talk about PDD because investors are focusing on

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<v Speaker 1>this one for a rather unusual reason, aren't they.

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<v Speaker 3>Yeah, So PDD this is the owner of Temu, who

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<v Speaker 3>is the aggressive online Chinese retailer. The shares are down

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<v Speaker 3>nearly two and a half percent after some quite comical

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<v Speaker 3>reporting that Chinese regulators got into multiple fistfights between employees

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<v Speaker 3>at their Shanghai premises. This week, Poleast made several arrests.

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<v Speaker 3>The Chinese regulators were investing fraudulent deliveries, and it's triggering

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<v Speaker 3>some investor concern about increased regulatory scrutiny. Obviously, we all

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<v Speaker 3>know or we all remember the high profile antitrust probe

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<v Speaker 3>it led against Ali Baba back in twenty twenty, so

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<v Speaker 3>again some speculation that there could be a regulatory crackdown

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<v Speaker 3>on PDD, the owner of Temu.

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