WEBVTT - Oracle Slips, Broadcom Plunges, Lulu Jumps on CEO Change

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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>I'm Carol Masser along with Tim Stanback. Let's get to

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<v Speaker 1>substocks on the move on this Friday. With us to

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<v Speaker 1>do that is Bloomberg Crossouse at Reporter Janitza Sokova in

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<v Speaker 1>the house, and we're going to start with Oracle. We've

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<v Speaker 1>been talking about this one a lot today.

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<v Speaker 3>We've been talking about it a lot this week and

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<v Speaker 3>in the past month, and it's really check on the

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<v Speaker 3>woe trade. We see the Nazuki is down today. That's

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<v Speaker 3>and Peas down today, and a lot of it came

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<v Speaker 3>after the news that Oorco has pushed back the completion

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<v Speaker 3>dates for some data centers that is developing for open Ai.

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<v Speaker 3>Initially they were going to be in twenty twenty seven.

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<v Speaker 3>Now the day they have is twenty twenty eight. The ticker,

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<v Speaker 3>of course, is all Our cl The stock is down

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<v Speaker 3>about four and a half percent, but it's extending a

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<v Speaker 3>forty percent slump since September.

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<v Speaker 4>There has been a lot of activity in there.

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<v Speaker 3>Sea investors have been growing pretty jittery about Orco in specific,

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<v Speaker 3>because that's a company that's obviously spending a lot of money.

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<v Speaker 3>Orco has been working to deliver three hundred billion contract

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<v Speaker 3>to supply the computing power necessary to train open AI models.

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<v Speaker 3>Capital expenditure, we recently got a report from them, came

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<v Speaker 3>at about twelve billion in the quarter. That's an increase

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<v Speaker 3>of eight port five billion. So this is a number

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<v Speaker 3>of investors have been worried about. It is more than

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<v Speaker 3>analysts we're expecting there of course expected heighth spending. Anyway,

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<v Speaker 3>this is even higher, and you can understand why some

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<v Speaker 3>of the jitters are appearing. And of course circularity of deals,

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<v Speaker 3>it's always the same names, the same names, and Orco

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<v Speaker 3>is there.

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<v Speaker 5>Okay, well, speaking of the same names and the same names,

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<v Speaker 5>let's go to Broadcom Architect, the chip architect that works

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<v Speaker 5>with some of the companies that are trying to take

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<v Speaker 5>on in video.

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<v Speaker 4>Yeah, and that was a big winner.

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<v Speaker 3>The company was up seventy five percent before the so

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<v Speaker 3>off we're seeing now big droll down. Today's shares were

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<v Speaker 3>down more than eleven percent, roatching a twelve percent drop,

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<v Speaker 3>the most inter day since January.

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<v Speaker 4>The sales outlook failed to meet investors' expectation. The ticker

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<v Speaker 4>is avgo.

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<v Speaker 3>It really happened after some unsettling commentary yesterday from their

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<v Speaker 3>CEO that said the company has a seventy three billion

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<v Speaker 3>in AI product orders backlog. He later tried to suit

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<v Speaker 3>investors and said that that figure was a minimum. But nevertheless,

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<v Speaker 3>we're seeing a really really big sale off and the

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<v Speaker 3>combination of ORC and Broadcom is really dragging TechTalks down.

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<v Speaker 4>Investors were seeking more clarity on.

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<v Speaker 3>When and how the company will get a payoff from AI,

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<v Speaker 3>but instead they didn't even get a forecast for AI

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<v Speaker 3>revenue for twenty twenty.

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<v Speaker 4>Six, so you know the worries are there.

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<v Speaker 3>We saw some good number salers will be about nineteen

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<v Speaker 3>billion in the first Riskoo quarter.

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<v Speaker 1>Which Jauan Kinging said that it was a really good quarter.

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<v Speaker 3>The report was good, but no one is looking at

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<v Speaker 3>what's happening now. Everyone is looking at the outlook and

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<v Speaker 3>any small appointment. It has a massive loss. Yeah, digit

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<v Speaker 3>to digit drop on a day. It is just okay, incredible.

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<v Speaker 1>If you don't like the AI trade, just go out

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<v Speaker 1>and buy some yoga pants.

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<v Speaker 4>Yeah, that's the shares of the lemon trade. If you

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<v Speaker 4>want to be up eleven percent today. The ticker is

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<v Speaker 4>l U.

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<v Speaker 3>L U low Lemma shares rallied after the yoga wear

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<v Speaker 3>maker Boost that is fuller outlook and announced that it's

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<v Speaker 3>chief executive officer would step down. There has been a

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<v Speaker 3>lot of competition. There are so many brands that offer

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<v Speaker 3>one hundred dollars yoga pants, and loul Lemon has kind

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<v Speaker 3>of taken the back seat for some time. There is allo,

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<v Speaker 3>you know, Nike has like a scheme's partnership and those

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<v Speaker 3>have been very popular. We're seeing some positive results in

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<v Speaker 3>lul Lemon after a pretty tough few years. Lemo's fisical

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<v Speaker 3>third quarter report had several positive signs. Profit and comparable

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<v Speaker 3>sales is something analysts are pointing that there is some

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<v Speaker 3>optimism there. The company has been pushing to improve their

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<v Speaker 3>products and to increase the alert.

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<v Speaker 4>They have some new things that have been.

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<v Speaker 3>Working, but nevertheless, the company is down fifty percent before

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<v Speaker 3>today's rally.

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<v Speaker 4>So it's been a tough here, but people are looking forward.

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<v Speaker 3>To more yoga pants and more optimism in that area.

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<v Speaker 1>You know, I'm going to live my whole world in

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<v Speaker 1>a pair of yoga pants. Sometimes that's what I'm wearing

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<v Speaker 1>it his studio.

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<v Speaker 4>Just throwing a jacket, wear some yoga pants.

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<v Speaker 5>I'm going to talk about Chip Wilson. He's the Lululemon founder.

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<v Speaker 5>He blasted the company's board after its leadership changes. He

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<v Speaker 5>said the directors failed on succession planning and allowed what

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<v Speaker 5>he calls significant value erosion. Under CEO Talvin McDonald, He's

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<v Speaker 5>making his voice heard as a huge shareholder of the

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<v Speaker 5>company that he founded.

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<v Speaker 1>Yeah, I mean, listen, it's a higher end product. It's

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<v Speaker 1>not inexpensive. You don't often see sales at Lululemon. We'll

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<v Speaker 1>have to figure out there's a lot more competition in

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<v Speaker 1>that space.

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<v Speaker 5>So I forget about your quarterly seventy five dollars credit.

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<v Speaker 4>I just signed up on amex. I use my friend's credit.

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<v Speaker 4>It was really good, right, good stuff, Denia, Thanks so much.

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