WEBVTT - Broadcom Slides on Disappointing AI Outlook, CrowdStrike Falls, Petco Drops

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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>All right, I'm Carol Master along with Tim Senovic. You know,

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<v Speaker 3>the markets have closed. We had quite a rally on

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<v Speaker 3>Wall Street. In the meantime, we do want to get

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<v Speaker 3>to some stocks on the move, and for that we're

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<v Speaker 3>going to go back to Emily Grebeo. She's back at

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<v Speaker 3>Bloomberg headquarters in New York City. So Emily, let's start

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<v Speaker 3>with Broadcom because this stock did not have a great day,

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<v Speaker 3>and Hockday is going to get ready to come up

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<v Speaker 3>on the big stage here, so he's gonna have some

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<v Speaker 3>really interesting questions that he's probably going to have to answer.

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<v Speaker 4>That's right, Carol, Not the best day for Hopdaan to

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<v Speaker 4>come and speak. When the stock fell about thirteen percent today,

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<v Speaker 4>of course, we're talking about Broadcom ticker AVGO. It was

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<v Speaker 4>the biggest drop in the stock since January twenty twenty five.

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<v Speaker 4>They gave an outlook that was seen as underwhelmed by

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<v Speaker 4>Wall Street analyst expectations, at least just given the industries

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<v Speaker 4>AI related demand. Analysts noted that AI sales and margins

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<v Speaker 4>for the current quarter were weaker than expected. There also

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<v Speaker 4>could have been again a case of the bar just

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<v Speaker 4>being way too high for a chip company like Broadcom.

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<v Speaker 4>The stock had already risen more than sixty percent off

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<v Speaker 4>of a March low as of the last close here,

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<v Speaker 4>Kunjan Sabani from BI Bloomberg Intelligence said, pointing out that

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<v Speaker 4>a third quarter AI revenue guidance of sixteen billion, I mean,

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<v Speaker 4>these are still huge numbers. It was below consensus, which

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<v Speaker 4>was near seventeen point two billion, So disappointing nonetheless for

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<v Speaker 4>the chip company.

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<v Speaker 1>All Right, so that's on the tech side.

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<v Speaker 2>Again.

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<v Speaker 1>We're gonna hear from Hoktan.

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<v Speaker 3>Just a little later say yoga pants are not tech.

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<v Speaker 1>Well, you know, Lulu Lemon did make a tech acquisition

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<v Speaker 1>years ago, and they bought that company Mirror. They bought

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<v Speaker 1>that company near years ago, but that was like a

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<v Speaker 1>different Lulu Lemon. All this to say Lululemon is next

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<v Speaker 1>on the list.

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<v Speaker 4>Yeah, Lululemon also falling today down about ten percent. Ticker Lulu,

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<v Speaker 4>the athletic clothing retailer, cut its net revenue guidance for

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<v Speaker 4>the full year, miss the average analyst estimate. You hear

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<v Speaker 4>what the interim CEO had to say. More recently, we've

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<v Speaker 4>been navigating headwinds that have led us to adjust our

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<v Speaker 4>outlook for the full year. We're taking additional actions to

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<v Speaker 4>reposition when needed. The shareholders didn't really like the fact

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<v Speaker 4>that again they had to cut that net revenue guidance

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<v Speaker 4>and it also missed the average analyst estimate. So almost

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<v Speaker 4>a double whimy here on the misses.

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<v Speaker 3>All right, so two that have not had a good day,

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<v Speaker 3>tell us about five below. What's going on there?

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<v Speaker 4>I'm bringing you guys all negative stocks. I hate to

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<v Speaker 4>end the show on it.

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<v Speaker 2>Now, what's up with that?

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<v Speaker 4>MLA A pessimistic node. But you know we're always now

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<v Speaker 4>that I'm in credit, I'm always looking for, you know,

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<v Speaker 4>the risks in the market. The credit people are more

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<v Speaker 4>pessimistic than the equity people. Anyway, five below down about

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<v Speaker 4>thirteen percent. Thursday, in the regular trading session, take our five.

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<v Speaker 4>The discount retailer beat first quarter earnings expectations and actually

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<v Speaker 4>raise their full year profit guidance, but they signaled caution

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<v Speaker 4>over the consumer in the months ahead. So if you

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<v Speaker 4>hear what the chief financial officer said, they said that

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<v Speaker 4>actually they don't think consumers felt the full pain of

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<v Speaker 4>the economy because of tax refund season, So they actually

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<v Speaker 4>think that more of that pain is actually going to

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<v Speaker 4>persist now that maybe people got their tax refunds, they

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<v Speaker 4>spent it, they felt a little comfortable. Now they're going

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<v Speaker 4>to feel that pain. So that's what analyst analysts were

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<v Speaker 4>watching here for five below. As we know, five below

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<v Speaker 4>a big read on the consumer. And if I can

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<v Speaker 4>just go back for a second, the Lulu Lemons stock

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<v Speaker 4>moving a lot more in the post market. I think

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<v Speaker 4>I forgot to mention that earlier, but I'll just do

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<v Speaker 4>a quick read here on my terminal, pulling it up

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<v Speaker 4>lulun Lemons stock right now took her Lulu down about

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<v Speaker 4>eleven percent in the post market trade.

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