WEBVTT - Week Ahead: Hims & Hers, Applied Materials, Cisco Systems

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

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<v Speaker 2>The Stock Mover's 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>Let's take a look now, add some stocks making news

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<v Speaker 3>in the week ahead. I'm Nathan Hager, joined by Bloomberg

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<v Speaker 3>Markets Live Managing Editor Christine Aquino with more earnings on

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<v Speaker 3>TEP this week starting Monday with Hymns and Hers Health.

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<v Speaker 3>Weren't they going to beef with Nova Nordisk recently? Christine?

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<v Speaker 3>How are things in telehealth these days?

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<v Speaker 1>That beefough is a thing of the past because they're

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<v Speaker 1>cooperating with each other now, right, And so that is

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<v Speaker 1>one of the reasons why the likes of JP Morgan

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<v Speaker 1>initiated a stock with an overweight rating because of that deal.

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<v Speaker 1>So now before they had a beef and now they

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<v Speaker 1>have a partnership. And so Hins and Hers will be

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<v Speaker 1>selling wee govy on its platform. And JP Morgan is

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<v Speaker 1>saying that that deal could mark a turning point and

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<v Speaker 1>remove a significant legal overhang. So that bothes well for

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<v Speaker 1>its earnings potentially, and you know, we have options of course,

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<v Speaker 1>starting to price that potential move there, we could see

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<v Speaker 1>it potentially a thirteen percent move in the share after

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<v Speaker 1>the company reports earnings, and so if that is all

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<v Speaker 1>fine and dandy, they meet or beat estimates, then that

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<v Speaker 1>could be a thirteen percent share move higher, But otherwise

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<v Speaker 1>it could be a thirteen percent share move lower. So

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<v Speaker 1>we'll see about that.

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<v Speaker 2>Yeah.

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<v Speaker 3>Well, I mean, this stock has already been doing pretty

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<v Speaker 3>well so far this year, has it it? I mean,

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<v Speaker 3>where is the bar when it comes to what investors

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<v Speaker 3>want to see from HIMS this time around?

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<v Speaker 1>Yeah? I mean, of course, the demand for the GLP

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<v Speaker 1>ones very much still sustaining the business model here, and

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<v Speaker 1>I think the fact that you know, they are able

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<v Speaker 1>to pivot because potentially you know, they're now in cooperation

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<v Speaker 1>with Novo and so they're kind of turning themselves from

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<v Speaker 1>a competitor into a retailer in that space, and so,

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<v Speaker 1>you know, I think investors will want to see is

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<v Speaker 1>that business model working, how much kind of gains could

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<v Speaker 1>they expect from that sort of partnership. Is it something

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<v Speaker 1>that could potentially also open up opportunities with other GLP

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<v Speaker 1>one manufacturers and sellers in the market, right, And so, yeah,

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<v Speaker 1>for Hymns and Hers, it's going to be a question

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<v Speaker 1>of how well are they able to pivot after this

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<v Speaker 1>initial legal setback.

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<v Speaker 3>I guess we could call Hymns and her sort of

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<v Speaker 3>tech adjacent, right, because this is going to be kind

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<v Speaker 3>of a busy week for tech earnings overall. We're going

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<v Speaker 3>to hear from Applied Materials on Thursday. This has been

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<v Speaker 3>a pretty crazy quarter for chip makers. Where are we

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<v Speaker 3>expecting chip equipment makers to stack well?

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<v Speaker 1>Based on the movement in the Semiconductor is index that

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<v Speaker 1>we've seen, I mean, I think it's all going to

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<v Speaker 1>be positive, So potentially high expectations for the earnings for

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<v Speaker 1>Applied Materials here, and you know the options data that

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<v Speaker 1>we're seeing at the moment implying about a six percent move.

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<v Speaker 1>After those results, we have seen a spate of analyst

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<v Speaker 1>moves for the stock, ubs raising its price target to

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<v Speaker 1>four hundred and eighty from four hundred and thirty previously,

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<v Speaker 1>Seaport Global Securities giving Applied Materials on new by rating

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<v Speaker 1>and a five hundred dollars price target. So it looks

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<v Speaker 1>like a lot of expectations very positive, especially because of

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<v Speaker 1>all the optimism that we've seen in the chip space

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<v Speaker 1>and our own bloomering intelligence analysts weighing in as well,

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<v Speaker 1>and they're looking for sales and fiscal second quarter finishing

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<v Speaker 1>higher and also similar gains for operating profits. So it

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<v Speaker 1>looks like there's going to be a lot of positivity

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<v Speaker 1>baked in. We'll see if they can deliver on that.

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<v Speaker 3>You could say that there's a lot of positivity baked

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<v Speaker 3>in already. I mean, this stock is serious double digits

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<v Speaker 3>on the year so far. Is it price to perfection?

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<v Speaker 1>I mean, that is definitely the worry every time we

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<v Speaker 1>see such big gains like these, Nathan, I mean, you

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<v Speaker 1>always have the naysayers in the market right say that

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<v Speaker 1>this can possibly keep going at nauseum. But just you know,

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<v Speaker 1>if you look at kind of the plans of the

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<v Speaker 1>biggest hyper scalers when it comes to their cap x right,

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<v Speaker 1>the likes of your alphabets, your Amazon's, your Apples, it

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<v Speaker 1>seems like there is never ending demand at the moment

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<v Speaker 1>for any equipment, any infrastructure related to AI and the

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<v Speaker 1>data center buildout, and so you know, in some ways

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<v Speaker 1>it could be priced perfection, but it may be a

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<v Speaker 1>while yet before we actually see that pullback in stock.

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<v Speaker 3>Speaking of the AI build out, we are going to

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<v Speaker 3>hear from another beneficiary of that phenomenon on Wednesday when

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<v Speaker 3>Cisco Systems reports. What are we expecting from Cisco?

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<v Speaker 1>Absolutely, Nathan, Well, you know, similarly positive things are blooming,

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<v Speaker 1>intelligence analysts saying that they're focusing primarily on Cisco's optical

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<v Speaker 1>and high capacity networking products and that has benefited from

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<v Speaker 1>the AI infrastructure ramp up. As you've mentioned, the expectation

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<v Speaker 1>is for that to keep benefiting from that, and specifically

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<v Speaker 1>for Cisco, that could result in an increase to about

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<v Speaker 1>five billion dollars and its AI order outlooks so not

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<v Speaker 1>too shabby for the stock, and that's really helped shield

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<v Speaker 1>it as well from the software pessimism that we've seen

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<v Speaker 1>in the start of the year, right because they're very

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<v Speaker 1>much levered to that build out that we've seen in

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<v Speaker 1>Given the demand for anything related to that, both hardware

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<v Speaker 1>and software, seems like it could be a positive season

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<v Speaker 1>for Cisco once again.

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<v Speaker 3>I guess one other question is whether Cisco is shielded

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<v Speaker 3>from the hit we've seen from memory costs from so

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<v Speaker 3>many of these companies that have reported so far.

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<v Speaker 1>Yeah, absolutely, definitely something that investors are going to be

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<v Speaker 1>watching out for. You know, how much of their margins

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<v Speaker 1>are they going to be able to protect as costs

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<v Speaker 1>rise in whether that a shortage is set to continue,

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<v Speaker 1>Is there supply chain something that is relatively insulated from

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<v Speaker 1>that dynamic, or is it something that they're going to

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<v Speaker 1>have to contend with as well. So I'm sure the

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<v Speaker 1>investors going to be looking out for any comments from

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<v Speaker 1>the company from their CEO during the analysts call, for sure.

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