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 at some stocks on the move today.
Speaker 1: I'm Nathan Hager, joined by Bloomberg's Valerie Titel. Starting off
Speaker 1: with the stock that is putting a weight on the
Speaker 1: broader market this morning. A lot of investors wondering whether
Speaker 1: Oracle is going to be living up to its name
Speaker 1: when it comes to AI concerns. Valerie, good morning.
Speaker 3: Yeah, Oracle really sinking at the moment, down eleven and
Speaker 3: a half percent after earnings showed a decent jump in
Speaker 3: AI spending, a forty percent rise in capex guidance to
Speaker 3: now fifty billion for next year. Alongside that, they gave
Speaker 3: a cash burn in the previous quarter that was ten
Speaker 3: billion dollars. The revenue growth was strong, but it's not accelerating,
Speaker 3: and it's making the market nervous over just a possible
Speaker 3: mismatch over the timing and scale of the return on
Speaker 3: this massive investment in cloud that Oracle has made to
Speaker 3: fulfill the large contracts is signed with Open AI. Is
Speaker 3: that return on investment going to come in time to
Speaker 3: service the near one hundred billion dollars of debt that
Speaker 3: is now in the company's name. So Oracle down eleven
Speaker 3: point six percent and dragging down the wider Nasdaq with it.
Speaker 1: Yeah, So what's the broader read through for some of
Speaker 1: the other big tech stocks.
Speaker 3: Well, if you look at Nvidia, who's kind of the
Speaker 3: darling of the AI trade, the main AI chip maker,
Speaker 3: world's most valuable company, it's down one point seven percent.
Speaker 3: And then on the back of that, if you look
Speaker 3: at other neo clouds, so other competitors to Oracle in
Speaker 3: this space, Core Weave is down three point eight percent,
Speaker 3: and a bs is another stock that is in the
Speaker 3: neocloud space, it's also in the red. And then if
Speaker 3: we look wider at global markets, we had soft Bank,
Speaker 3: the prominent Japanese tech investor who's heavily invested in open Ai.
Speaker 3: Those shares were down near eight percent in Tokyo trade.
Speaker 3: And here in Europe, SAP, one of the biggest tech
Speaker 3: companies in Europe, was down two point four percent. So
Speaker 3: a lot of big tech names causing some drags, and
Speaker 3: some of the major indices across the globe.
Speaker 1: Got to move from the AI trade to the obesity
Speaker 1: trade because it looks like a big name there has
Speaker 1: made some significant news.
Speaker 2: Eli Lilly Eli Lilly.
Speaker 3: Out with results of phase three trials of their GLP
Speaker 3: one obesity shot and man it is positive. Lily shares
Speaker 3: up two point seven percent, the body weight being reduced
Speaker 3: by a whopping twenty three percent over sixty eight weeks
Speaker 3: in the study using their new obesity shot, and results
Speaker 3: exceeded expectations so by so much that some patients in
Speaker 3: the study lost so much weight they decided to drop
Speaker 3: out of the trial, according to Eli Lillly. So Eli
Speaker 3: Lilly shares are gaining off the back of this positive
Speaker 3: of results from their phase three trials of their obesity shot,
Speaker 3: and very interesting, Nova Nordis one of their main competitors.
Speaker 3: Those shares are all headed higher still this morning, so
Speaker 3: it's not necessarily denting their shares their main competitor, Nova Nordis,
Speaker 3: but I have to note Nova Nordisk has been on
Speaker 3: a assive backfoot last eighteen months.
Speaker 1: Got to talk about PDD because investors are focusing on
Speaker 1: this one for a rather unusual reason, aren't they.
Speaker 3: Yeah, So PDD this is the owner of Temu, who
Speaker 3: is the aggressive online Chinese retailer. The shares are down
Speaker 3: nearly two and a half percent after some quite comical
Speaker 3: reporting that Chinese regulators got into multiple fistfights between employees
Speaker 3: at their Shanghai premises. This week, Poleast made several arrests.
Speaker 3: The Chinese regulators were investing fraudulent deliveries, and it's triggering
Speaker 3: some investor concern about increased regulatory scrutiny. Obviously, we all
Speaker 3: know or we all remember the high profile antitrust probe
Speaker 3: it led against Ali Baba back in twenty twenty, so
Speaker 3: again some speculation that there could be a regulatory crackdown
Speaker 3: on PDD, the owner of Temu.
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