WEBVTT - Micron Surges; Alibaba Lower; Wendy's Soars

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Dan Curtis on a

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<v Speaker 3>morning with tech stocks in rally mode led by Micron.

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<v Speaker 4>Good morning Dan, Good morning Nathan. That's right.

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<v Speaker 5>Micron shares are up eighteen percent in pre market edder

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<v Speaker 5>ticker MU. And that's as the memory companies sales forecast

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<v Speaker 5>crushed estimates. It sees fifty billion in revenue in the

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<v Speaker 5>current quarter. Analyst estimates were for forty three billion dollars.

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<v Speaker 5>Gross margins for the period reported were at eighty five percent,

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<v Speaker 5>a record level for the company. Demand for high bandwidth

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<v Speaker 5>memory goes well out into twenty twenty eight and Micron

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<v Speaker 5>has secured sixteen strategic customer agreements, and this just shows

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<v Speaker 5>how much power Micron has went it comes to the table.

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<v Speaker 5>These agreements average three years in length and can't be canceled.

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<v Speaker 5>Customers have a minimum amount of volume they pay for,

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<v Speaker 5>whether they order that much or not, and Micron has

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<v Speaker 5>collected eighteen billion dollars in upfront cash for those companies

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<v Speaker 5>to secure the contracts. That's more than the company's twenty

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<v Speaker 5>twenty three total revenue.

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<v Speaker 4>Absolute blowout period.

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<v Speaker 3>And another chip stock of sorts is making news this morning, Dan,

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<v Speaker 3>I got to tell you this news from IBM is

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<v Speaker 3>seriously blowing my mind today.

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<v Speaker 4>I can't even fathom it.

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<v Speaker 5>So IBM shares are up five percent as the tech

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<v Speaker 5>giant unveiled the world's first sub one nanometer chip. So

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<v Speaker 5>Moore's law is alive and well today. This chip has

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<v Speaker 5>a density of one transistor for every point seven nanometers

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<v Speaker 5>or seven angstrums.

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<v Speaker 4>That's the unit used to measure the width of DNA.

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<v Speaker 5>Helix says it is three silicon atoms wide. Just absolutely

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<v Speaker 5>amazing engineering, and that puts nearly one hundred billion transistors

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<v Speaker 5>onto a chip the size of a fingernail.

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<v Speaker 4>It's using new technology.

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<v Speaker 5>It's called link nanostack architecture which vertically stacks and staggers

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<v Speaker 5>the transitions, and IBMC is a path to production and

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<v Speaker 5>as early as five years out. So a big breakthrough

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<v Speaker 5>on the chip front this morning.

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<v Speaker 3>Eventually the chips are just going to disappear and they're

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<v Speaker 3>still going to have billions of transistors on them.

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<v Speaker 1>It's unbelievable.

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<v Speaker 5>I mean, it gets to the point where something called

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<v Speaker 5>quantum tunneling is coming in and it's going to limit

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<v Speaker 5>what they can do. Like we're at the quantum level.

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<v Speaker 5>It's absolutely fascinating.

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<v Speaker 1>Yeah, and then only ant Man I'll be able to

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<v Speaker 1>see it.

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<v Speaker 3>Oh, let's get off back on track here though, Dan,

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<v Speaker 3>because we've got some deal news in the tech space

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<v Speaker 3>for a company with a ticker symbol that I think

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<v Speaker 3>a lot of tech companies.

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<v Speaker 4>Would kill for absolutely tech.

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<v Speaker 5>That's biotechne Merk KGaA that's the one based in Germany

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<v Speaker 5>is buying the global life science company for seventy three

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<v Speaker 5>dollars a share in cash that gives a total enterprise

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<v Speaker 5>value about eleven billion dollars and is sending shares up

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<v Speaker 5>twenty percent in pre market. They're trading around seventy to fifty,

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<v Speaker 5>so a few dollars off that offer price. The proposed

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<v Speaker 5>trans action has been approved by Biotechnic's board of directors,

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<v Speaker 5>it still needs shareholder approval and regulatory sign off. That said,

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<v Speaker 5>it's expected to close later this year or early next year,

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<v Speaker 5>and Mirk will fund it through existing cash and new debt.

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<v Speaker 3>Just time to tell us about the most actively traded

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<v Speaker 3>stock this morning, and it's not Micron.

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<v Speaker 1>It's Wendy's Dan.

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<v Speaker 4>Yeah, it is becoming a new meme stock.

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<v Speaker 5>The company shares are up sixteen percent, continuing the rally

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<v Speaker 5>after yesterday's twenty five percent surge, which was the largest

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<v Speaker 5>in many years. The company has been trending on stock

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<v Speaker 5>twits and appears to be triggered from a post on

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<v Speaker 5>Reddit's Wall Street Bets, which was later removed, and it

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<v Speaker 5>implored members to quote save Wendy's before it was too late.

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<v Speaker 4>End quote. This has the markings of mean stock.

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<v Speaker 5>It's tumbled over seventy percent in the past three years,

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<v Speaker 5>and short sellers have piled in two hundred million shares

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<v Speaker 5>traded hands yesterday. That is twice the amount of the

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<v Speaker 5>previous record, So a lot of activity in the stock.

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<v Speaker 2>This stock Movers report from Bloomberg Radio. Check back with

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