WEBVTT - Closing Bell: Netflix Soars, Lockheed Martin Sinks, Vera Bradley Lower

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

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<v Speaker 2>This is the closing bell on this stock mover's report.

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<v Speaker 2>The company's making moves at the close of US trading

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<v Speaker 2>with Carol Master, Tim Stenebeck, Romain Bostik, and Scarlett fu Well.

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<v Speaker 3>Let me take you through some of the gainers that

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<v Speaker 3>I was watching over the course of the day. Netflix

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<v Speaker 3>is one of them. NFLX, of course, and Greg Peters,

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<v Speaker 3>the co CEO of that company, speaking at a Wall

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<v Speaker 3>Street Journal event in London, expressing some optimism to hear

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<v Speaker 3>about that company's ability to kind of weather the uncertainty

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<v Speaker 3>that we're seeing all around the world because of trade talks.

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<v Speaker 3>Of course, the President threatened to impose new tariffs on

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<v Speaker 3>the filmmaking and movie making industry as well. He sag

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<v Speaker 3>Netflix continues to be optimistic. It's going to make those

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<v Speaker 3>movies overseas. It's going to stay the course, makes a

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<v Speaker 3>lot of them in the United Kingdom where he was speaking,

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<v Speaker 3>plans to invest more than a billion dollars over the

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<v Speaker 3>next four years on shows and movies that are shot

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<v Speaker 3>in Spain, continuing its focus on games. Golden another one

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<v Speaker 3>I've been watching over the course of the day. Bank

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<v Speaker 3>of America maintaining a buy on Goldben Sachs with a

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<v Speaker 3>price target of seven hundred dollars. Again, the theme here

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<v Speaker 3>is resilience in an uncertain environment and attributing a particular

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<v Speaker 3>promise to its asset and wealth management business. The last

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<v Speaker 3>gainer I'm flagging here is McKesson, it raising it's earning

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<v Speaker 3>focus work forecast because of broad based operational momentum. Morgan

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<v Speaker 3>Stanley maintain and overweight on McKesson, racing its price target

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<v Speaker 3>from seven forty five to seven seventy again saying it's

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<v Speaker 3>well positioned to manage risks.

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<v Speaker 1>Kind I just had a couple of honorable mentions. Ochlo

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<v Speaker 1>having a great day, their best day going back basically

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<v Speaker 1>since they back to their highest levels, I should say,

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<v Speaker 1>since they went public, and that's on the back of

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<v Speaker 1>an announcement that they are going to be at the

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<v Speaker 1>intended awardee of a new US Department of Defense contract.

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<v Speaker 1>And also Voyager it went public today.

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<v Speaker 4>Guys, really big name. I mean, we were seeing a

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<v Speaker 4>lot of the shares surging today for a really good IPO.

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<v Speaker 4>But let's look at some of the names that are

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<v Speaker 4>in the red today. I had eyes on Lockheed Martin.

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<v Speaker 4>This is, of course, of the US defense contractor. We

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<v Speaker 4>saw shares down four point two percent. That's the biggest

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<v Speaker 4>drop since April. And this is after the Bloomberg reported

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<v Speaker 4>that the Air Force had cut its request in half

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<v Speaker 4>its request to Congress for F thirty five jets. Of course,

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<v Speaker 4>this is really weighing on defense contractors, not only Lockheed,

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<v Speaker 4>but we were seeing some of its peers down as well.

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<v Speaker 4>But I'm also looking at Chewy now. We saw shares

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<v Speaker 4>of this company falling for their worst daily performance since

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<v Speaker 4>August twenty twenty three. That's down eleven percent. This is

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<v Speaker 4>an online pet food pet retailer, a lot of different

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<v Speaker 4>foods that you can get there for your pets.

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<v Speaker 5>But this is a companies too.

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<v Speaker 1>Don't forget the treats.

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<v Speaker 2>So see, I don't have a pet.

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<v Speaker 4>I'm sorry. My pets are back in Virginia with the parents.

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<v Speaker 4>But we did see gross margin and free cash flow

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<v Speaker 4>falling short of expectations here, but it did reiterate its

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<v Speaker 4>annual sales target. And lastly, another person, I'm a little

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<v Speaker 4>bit of both. I'm not gonna lie, you know, I

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<v Speaker 4>split I split the line here.

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<v Speaker 1>I'm a dog person. I think Scarlett's dog person and

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<v Speaker 1>you are Tim welcome coming. That was a was Alex

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<v Speaker 1>Steele letting you know who what side she's on.

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<v Speaker 4>I love it, I love it well. Also Vera Bradley,

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<v Speaker 4>this is a name that a lot of people know

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<v Speaker 4>in the retail space. We're seeing shares of that company

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<v Speaker 4>falling for their worst stay since the pandemic twenty twenty,

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<v Speaker 4>down for double digit losses, down nineteen percent. The company

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<v Speaker 4>suspended as guidance, but also announced the departure of its CEO,

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<v Speaker 4>So that polled guidance is really reflecting executive and board

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<v Speaker 4>leadership changes and significant uncertainty consumer concerning the consumer environment

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<v Speaker 4>there and.

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<v Speaker 5>No surprise here, oklow is going to offer some stock?

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<v Speaker 5>Makes sense, great day Bessons's ibo. Why not those bankers

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<v Speaker 5>making some money on that. Okay, let's go to the

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<v Speaker 5>bond market here. So buying all across the curve, less

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<v Speaker 5>in the back end, more on the front end, the

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<v Speaker 5>two year yield down by about seven basis points below

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<v Speaker 5>that four percent level, you wind up having that benign

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<v Speaker 5>CPI stops couldn't catch a sustained bid, but bonds could

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<v Speaker 5>as yields move lower. The dollar though couldn't either, So

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<v Speaker 5>that was a quite interesting dynamic.

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<v Speaker 1>Yeah, kind of interesting too. We should point out as well,

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<v Speaker 1>of course, you know, obviously the economic data that we're

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<v Speaker 1>going to keep an eye on for the rest of

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<v Speaker 1>the week with PPI tomorrow, and of course the consumer

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<v Speaker 1>sent data coming out at the end of the week

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<v Speaker 1>out of you miss but don't forget, we get some

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<v Speaker 1>earnings too out of Oracle as well, So maybe another

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<v Speaker 1>read after the bill today here on the AI trade, And.

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<v Speaker 6>Don't forget you also have the third year bond auction

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<v Speaker 6>tomorrow as well, which.

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<v Speaker 3>Is going to be a big one.

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<v Speaker 1>Yeah, well, did you see the ten year bond auction today?

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<v Speaker 1>I was kind of that did come in a little

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<v Speaker 1>bit less than what you saw coming into that as well. Here,

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<v Speaker 1>I think Oracle guys is now crossing the wire. Let's

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<v Speaker 1>get right to it. Here Oracle shares at least the

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<v Speaker 1>knee jerk reaction, you see that right now to the upside.

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<v Speaker 1>With fourth quarter adjusted EPs at a dollar seventy a share,

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<v Speaker 1>that is a beat the street was looking for a

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<v Speaker 1>dollar sixty four. Revenue also looks like it came in

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<v Speaker 1>above street estimates fifteen point nine billion. The street was

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<v Speaker 1>looking for fifteen point six cloud infrastructure in the most

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<v Speaker 1>recent period, coming in just a touch light three billion dollars.

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<v Speaker 1>The street was looking for three point seven billion dollars,

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<v Speaker 1>and we should just point out margin in the most

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<v Speaker 1>recent quarter that came in pretty much on the nose, guys,

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<v Speaker 1>at forty four percent.

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<v Speaker 6>All right, let's also get you a read on the

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<v Speaker 6>consumer here. We're taking a look at Oxford Industries and

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<v Speaker 6>I'm going to pull up the earnings right now OXFD.

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<v Speaker 6>The results are as follows. Actually you know what, no, OhFM,

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<v Speaker 6>Sorry guys, OXM Equity, this is really sard Yeah good,

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<v Speaker 6>the more good were good? Okay. Oxford Industries first quarter

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<v Speaker 6>justed EPs a dollar eighty two, beating the consensus assessment

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<v Speaker 6>by one penny. In terms of the outlook here, second

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<v Speaker 6>quarter net sales will be anywhere from three hundred ninety

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<v Speaker 6>five to four hundred and fifteen million. Analysts we're looking

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<v Speaker 6>for on average four hundred eleven million, and Oxford says

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<v Speaker 6>it sees second quarter adjusted EPs of as much as

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<v Speaker 6>a dollar twenty five, whereas analysts we're looking for two

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<v Speaker 6>dollars and twenty one cents. I'm not sure if we're

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<v Speaker 6>comparing likewood like here. But if we are that is

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<v Speaker 6>a big miss on that outlook for the second quarter

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<v Speaker 6>adjusted EPs said, you can see the stock right now

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<v Speaker 6>down eight and a half percent in after our trading,

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<v Speaker 6>And of course Oxford includes brands like Lilid, Pulitzer and

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<v Speaker 6>Tommy Bahama.

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<v Speaker 5>All right, going back to Oracle for a second, guys,

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<v Speaker 5>because the stock is lower, But I mean the numbers

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<v Speaker 5>are pretty good. And the CEO saying riy Elson that look,

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<v Speaker 5>twenty twenty five was actually very good year, but they

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<v Speaker 5>think twenty twenty six will be even better. Their cloud

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<v Speaker 5>infrastructure growth rates expected to increase from fifty percent for

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<v Speaker 5>its full year twenty twenty five to over seventy percent

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<v Speaker 5>in the full year twenty.

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<v Speaker 3>Six stood out to me as well. I was just

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<v Speaker 3>going to pile on there and say that they're optimism.

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<v Speaker 3>They're about the growth of cloud computing certainly coming through

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<v Speaker 3>here in these earnings that we got this afternoon.

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<v Speaker 4>Definitely, I mean, we're seeing a lot of these tech

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<v Speaker 4>names really just roaring. I mean, I think we see

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<v Speaker 4>Oracle as we're digesting a lot of these results. Focus

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<v Speaker 4>is really on tech here.

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<v Speaker 1>The focus is on tech here, and let's walk through

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<v Speaker 1>some of the individual segments there, because that gives you,

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<v Speaker 1>i think why maybe a little bit more of a

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<v Speaker 1>sense of why we're seeing them down when we talk

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<v Speaker 1>about that cloud service has been so it was still

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<v Speaker 1>a growth rate of about fourteen percent, but some of

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<v Speaker 1>the whisper numbers coming in was looking for something closer

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<v Speaker 1>to twenty percent. Cloud licensed revenue that was up about

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<v Speaker 1>nine point two percent. Hardware revenue, I'm not sure how

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<v Speaker 1>much of important that is. That was up about a percent,

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<v Speaker 1>but the services revenue was down and that was down

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<v Speaker 1>about one point eight percent. That also came in below

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<v Speaker 1>street estimates as well.

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<v Speaker 6>And there's a comment here from Saffracast, the CEO, saying

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<v Speaker 6>that fiscal year twenty twenty five was a very good year,

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<v Speaker 6>but we believe twenty twenty six will be even better

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<v Speaker 6>as our revenue growth rates will be dramatically higher. Again,

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<v Speaker 6>dramatically higher. They're looking at total cloud growth rate applications

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<v Speaker 6>plus infrastructure increasing from twenty four percent in fiscal year

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<v Speaker 6>twenty five to over forty percent the next year.

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<v Speaker 1>All right, of course, so we're gonna have to wait

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<v Speaker 1>up for the earning's conference call to get a better

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<v Speaker 1>read on the guidance going forward, as that of course,

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<v Speaker 1>is not included fully into the release.

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<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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<v Speaker 2>making news on Wall Street and for the latest market

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<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

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