Speaker 1: Bloomberg Audio Studios.
Speaker 2: Podcasts. Radio. News. The Stock Movers Report, your roundup of
Speaker 2: companies making moves in the stock market, harnessing the power
Speaker 2: of Bloomberg data.
Speaker 3: Let's take a look at some stocks on the move today.
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Dan Curtis. Before we
Speaker 3: get to the biggest winners and losers in the pre-market,
Speaker 3: we've got to talk about the biggest earnings story of
Speaker 3: the day.
Speaker 1: Dan, that would be Broadcom.
Speaker 3: Kind of a complicated picture here.
Speaker 1: Why is the stock lower this morning?
Speaker 4: Yeah, very complicated. And the stock, which trades under ticker AVGO,
Speaker 4: is down about 3% in the pre-market. And we've seen
Speaker 4: a lot of fluctuations after the results came out after
Speaker 4: the bell. Stock went down pretty heavily, then reversed.
Speaker 1: It was back up. Now we're down 3%.
Speaker 4: So as you said, very complicated. So the fourth quarter
Speaker 4: outlook coming in below estimate. So there's a little bit
Speaker 4: of a speed bump in the road ahead of this company.
Speaker 4: It sees $ 35 billion in sales in the current quarter.
Speaker 4: That was short of the average estimate. However, after that,
Speaker 4: the next two years, the company then sees rapid expansion
Speaker 4: with results doubling each fiscal year, so quadrupling over two years,
Speaker 4: which is very robust. And the company is also projecting
Speaker 4: earnings of $ 30 a share in fiscal 2028. So again,
Speaker 4: a few years out, stronger than estimates. So short-term bump,
Speaker 4: but long-term, there looks to be an acceleration. One thing
Speaker 4: to note, though, is Broadcom said it sees Anthropic and
Speaker 4: OpenAI surpassing Google as its biggest customer. Now, both of
Speaker 4: these companies are in the process of going public, which
Speaker 4: would provide a capital infusion, and they may need this
Speaker 4: cash to pay all of their bills. So you also
Speaker 4: then have the complication of two IPOs potentially necessary for
Speaker 4: this company to fulfill all of its current estimates. for
Speaker 4: what will happen in the next few years. So when
Speaker 4: you go out that far, there's a lot of different
Speaker 4: ways this could go. If it goes smoothly, it looks
Speaker 4: very strong. However, you could get a few bumps in
Speaker 4: the road.
Speaker 3: Okay, so let's put a little bit of a drag
Speaker 3: on NASDAQ futures this morning, an even bigger drag from HPE.
Speaker 3: This earnings story seems a little more straightforward, Dan.
Speaker 1: Yeah, it is.
Speaker 4: So HPE shares are down 4% in the pre-market, and
Speaker 4: the company is failing to live up to the hype
Speaker 4: that existed into the earnings report yesterday morning.
Speaker 1: We were talking about Dell.
Speaker 4: That had HPE investors enthusiastic into their earnings, however, not
Speaker 4: quite making it. So the company beat top and bottom
Speaker 4: line estimates for the fiscal third quarter. It raised its
Speaker 4: revenue projections. Gross margins are expected to moderate towards historical levels,
Speaker 4: so we're starting to see signs of margin contraction. And also,
Speaker 4: data center networking revenue fell 6%, and that was driven
Speaker 4: by supply constraints. That particular area of the overall networking
Speaker 4: segment led the networking revenue to miss for the period.
Speaker 1: That is weighing on shares this morning.
Speaker 3: Okay, so that's one of the biggest losers pre-market. The
Speaker 3: biggest winner and then some... Snowflake, wow.
Speaker 1: What a pop.
Speaker 4: 24% pop, ticker S-N-O-W.
Speaker 1: It's a cloud-based data platform.
Speaker 4: It's projecting fiscal year revenue will be around $ 6 billion.
Speaker 1: That is higher than the average street estimate.
Speaker 4: The company's been weaving artificial intelligence into its platform, and
Speaker 4: that's starting to pay off.
Speaker 1: It has a coding assistant that they call Coco.
Speaker 4: It had 2,000 new customer accounts that increased total by
Speaker 4: over 25%. JP Morgan analysts note that the third consecutive
Speaker 4: quarter of product revenue acceleration showcases both AI and core upsides.
Speaker 4: The shares have already more than doubled off the year's lows.
Speaker 4: It is continuing up significantly higher as both the AI
Speaker 4: and the non-AI parts of this business show some strong acceleration.
Speaker 3: And we got a pretty positive earnings story as well
Speaker 3: outside the tech space from Five Below.
Speaker 4: Right.
Speaker 1: So ticker is 5FIVE.
Speaker 4: It's a discount retailer and it's lifting its full year outlook,
Speaker 4: seeing net sales coming in about 4% higher than its
Speaker 4: previous guidance. Now, this comes in with a little bit
Speaker 4: of a cautious outlook that the company issued in June.
Speaker 4: It was concerned about the impact of persistent inflation, but
Speaker 4: is now raising guidance higher. CEO said that the raised
Speaker 4: forecast is a result of the company being able to
Speaker 4: quickly capitalize on online trends.
Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with
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