WEBVTT - HPE Soars, Victoria's Secret Climbs, Shake Shack Falls

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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 3>I'm Carol Maser along with Tim Stanvik. Let's get a

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<v Speaker 3>look at some stocks on the move. With us to

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<v Speaker 3>do that, as Bloomberg News Equities reporter Natalia, Kenny Javich

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<v Speaker 3>is here in studio. Natalia, we do have some big

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<v Speaker 3>movers in today's session. Where do you want to beget Let's.

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<v Speaker 4>Start with Hpe. The stock is up by seventeen percent.

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<v Speaker 4>At one point it jumped by as much as thirty

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<v Speaker 4>six percent. This is the highest, the biggest level on record.

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<v Speaker 4>The company posted better than expected results also boosted outlook

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<v Speaker 4>on key metrics. We saw that revenue for the past

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<v Speaker 4>quarter jumped by forty percent. CEO was on Bloomberg TV early.

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<v Speaker 4>He was asked whether it's a demand or supply question

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<v Speaker 4>or just the result of higher prices. He said, this

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<v Speaker 4>is a volume story with very discipline and pricing execution.

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<v Speaker 4>I chatted with couple analysts, including Bloomberg Intelligence, and I asked, like,

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<v Speaker 4>why is it such a huge surprise that we see

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<v Speaker 4>this reaction in stocks. So they said that basically this

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<v Speaker 4>big jump in revenue came from corporate IT segment, which

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<v Speaker 4>means that companies bring AI in house. As a result,

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<v Speaker 4>we may see a productivity boost, which we will all

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<v Speaker 4>are expecting giving this massive capex in AI. And the

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<v Speaker 4>key takeaway that this is happening much sooner than it

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<v Speaker 4>was expected, because people are saying they thought it would

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<v Speaker 4>be like a twenty twenty seven story.

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<v Speaker 1>I mean, it's kind of wild because you go back

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<v Speaker 1>to twenty fifteen, which is when the company HP and

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<v Speaker 1>HPE split off, and this stock between twenty fifteen and

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<v Speaker 1>the beginning of this year had literally done nothing, was

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<v Speaker 1>up three percent, say, it wasn't doing anything over the

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<v Speaker 1>last decade, and now it has gone parabolic. It had

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<v Speaker 1>a market cap at the big end of the year

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<v Speaker 1>at just over thirty billion dollars. It's now it's seventy

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<v Speaker 1>three billion dollars.

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<v Speaker 3>Don't you remember when they first did the split, everybody

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<v Speaker 3>thought HPE was going to be the one that just

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<v Speaker 3>took off like a rocket.

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<v Speaker 1>That was the whole idea, and the legacy business went

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<v Speaker 1>into But.

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<v Speaker 3>The legacy business actually did better for a while. But

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<v Speaker 3>now we're seeing certainly a different trade, and HPE is

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<v Speaker 3>certainly coming I guess you could say into its own

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<v Speaker 3>Victoria's Secret man all over the place. But this one

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<v Speaker 3>definitely moving in a big way to the upside today.

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<v Speaker 4>So the stock is up by almost fifty percent to date.

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<v Speaker 4>The tickeer for that one is vs x y. Better

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<v Speaker 4>than expected results, better than expected outlook. We see that

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<v Speaker 4>guidance sales guidance annually will be at as much as

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<v Speaker 4>one point seven point thirteen a billion. Analysts expected a

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<v Speaker 4>much lower level. However, guys, we should keep in mind

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<v Speaker 4>that this stock has about twenty percent of short interest,

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<v Speaker 4>so we potentially some short covering is happening as well today.

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<v Speaker 4>But overall, analysts were really happy about the results, specifically

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<v Speaker 4>how the new management is executing this strategy appealing to

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<v Speaker 4>younger audience, and they also mentioned highly Bieber's campaigned You're

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<v Speaker 4>in Sant Valentine's. They even like mentioned some specific age

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<v Speaker 4>groups that the company is targeting right now, between eighteen

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<v Speaker 4>to twenty four years old. So pretty strong results. We'll

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<v Speaker 4>see how that plays out.

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<v Speaker 3>Used to be a Victoria's Secret right across the street.

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<v Speaker 1>There's nothing been for a long time, right yea for

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<v Speaker 1>a long time. All right, cheek shack. There's no one

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<v Speaker 1>close enough to hear for me to get a bird.

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<v Speaker 3>You love Shakeshack.

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<v Speaker 1>I would like a shake Shack burger. Now Shack burger.

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<v Speaker 3>I feel like we're ready for flights, Like, let's get

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<v Speaker 3>a burger. Yeah, good guys.

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<v Speaker 4>Yeah. So I've never been to Shakeshock. I have to

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<v Speaker 4>admit because I'm trying to be vegetarian and they don't

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<v Speaker 4>have options.

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<v Speaker 1>Yeah, they have a mushroom the Shroomami is there anything? No,

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<v Speaker 1>it's been around forever. Try it cool.

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<v Speaker 4>So the stock is down by nine percent. The ticker

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<v Speaker 4>for that one is is Hak. So in your guidance,

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<v Speaker 4>I was scaled back. Shakeshop cut second quarter same store

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<v Speaker 4>sales forecast to two point five to three percent, down

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<v Speaker 4>from three to five percent. So the management, of course

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<v Speaker 4>blamed macroeconomic environment really competitive landscape. Analysts are also saying

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<v Speaker 4>that all of that just shows that the previous guidance

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<v Speaker 4>was too aggressive, and they also implemented some menu options

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<v Speaker 4>like barbecue men. I don't know if you guys tried it,

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<v Speaker 4>but it just worked for a very short period of time.

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<v Speaker 4>So for now, investors and analysts are saying okay whether

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<v Speaker 4>this guidance was cut.

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<v Speaker 3>In that.

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<v Speaker 2>The 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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