Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: I'm Carol Maser along with Tim Stanvik. Let's get a
Speaker 3: look at some stocks on the move. With us to
Speaker 3: do that, as Bloomberg News Equities reporter Natalia, Kenny Javich
Speaker 3: is here in studio. Natalia, we do have some big
Speaker 3: movers in today's session. Where do you want to beget Let's.
Speaker 4: Start with Hpe. The stock is up by seventeen percent.
Speaker 4: At one point it jumped by as much as thirty
Speaker 4: six percent. This is the highest, the biggest level on record.
Speaker 4: The company posted better than expected results also boosted outlook
Speaker 4: on key metrics. We saw that revenue for the past
Speaker 4: quarter jumped by forty percent. CEO was on Bloomberg TV early.
Speaker 4: He was asked whether it's a demand or supply question
Speaker 4: or just the result of higher prices. He said, this
Speaker 4: is a volume story with very discipline and pricing execution.
Speaker 4: I chatted with couple analysts, including Bloomberg Intelligence, and I asked, like,
Speaker 4: why is it such a huge surprise that we see
Speaker 4: this reaction in stocks. So they said that basically this
Speaker 4: big jump in revenue came from corporate IT segment, which
Speaker 4: means that companies bring AI in house. As a result,
Speaker 4: we may see a productivity boost, which we will all
Speaker 4: are expecting giving this massive capex in AI. And the
Speaker 4: key takeaway that this is happening much sooner than it
Speaker 4: was expected, because people are saying they thought it would
Speaker 4: be like a twenty twenty seven story.
Speaker 1: I mean, it's kind of wild because you go back
Speaker 1: to twenty fifteen, which is when the company HP and
Speaker 1: HPE split off, and this stock between twenty fifteen and
Speaker 1: the beginning of this year had literally done nothing, was
Speaker 1: up three percent, say, it wasn't doing anything over the
Speaker 1: last decade, and now it has gone parabolic. It had
Speaker 1: a market cap at the big end of the year
Speaker 1: at just over thirty billion dollars. It's now it's seventy
Speaker 1: three billion dollars.
Speaker 3: Don't you remember when they first did the split, everybody
Speaker 3: thought HPE was going to be the one that just
Speaker 3: took off like a rocket.
Speaker 1: That was the whole idea, and the legacy business went
Speaker 1: into But.
Speaker 3: The legacy business actually did better for a while. But
Speaker 3: now we're seeing certainly a different trade, and HPE is
Speaker 3: certainly coming I guess you could say into its own
Speaker 3: Victoria's Secret man all over the place. But this one
Speaker 3: definitely moving in a big way to the upside today.
Speaker 4: So the stock is up by almost fifty percent to date.
Speaker 4: The tickeer for that one is vs x y. Better
Speaker 4: than expected results, better than expected outlook. We see that
Speaker 4: guidance sales guidance annually will be at as much as
Speaker 4: one point seven point thirteen a billion. Analysts expected a
Speaker 4: much lower level. However, guys, we should keep in mind
Speaker 4: that this stock has about twenty percent of short interest,
Speaker 4: so we potentially some short covering is happening as well today.
Speaker 4: But overall, analysts were really happy about the results, specifically
Speaker 4: how the new management is executing this strategy appealing to
Speaker 4: younger audience, and they also mentioned highly Bieber's campaigned You're
Speaker 4: in Sant Valentine's. They even like mentioned some specific age
Speaker 4: groups that the company is targeting right now, between eighteen
Speaker 4: to twenty four years old. So pretty strong results. We'll
Speaker 4: see how that plays out.
Speaker 3: Used to be a Victoria's Secret right across the street.
Speaker 1: There's nothing been for a long time, right yea for
Speaker 1: a long time. All right, cheek shack. There's no one
Speaker 1: close enough to hear for me to get a bird.
Speaker 3: You love Shakeshack.
Speaker 1: I would like a shake Shack burger. Now Shack burger.
Speaker 3: I feel like we're ready for flights, Like, let's get
Speaker 3: a burger. Yeah, good guys.
Speaker 4: Yeah. So I've never been to Shakeshock. I have to
Speaker 4: admit because I'm trying to be vegetarian and they don't
Speaker 4: have options.
Speaker 1: Yeah, they have a mushroom the Shroomami is there anything? No,
Speaker 1: it's been around forever. Try it cool.
Speaker 4: So the stock is down by nine percent. The ticker
Speaker 4: for that one is is Hak. So in your guidance,
Speaker 4: I was scaled back. Shakeshop cut second quarter same store
Speaker 4: sales forecast to two point five to three percent, down
Speaker 4: from three to five percent. So the management, of course
Speaker 4: blamed macroeconomic environment really competitive landscape. Analysts are also saying
Speaker 4: that all of that just shows that the previous guidance
Speaker 4: was too aggressive, and they also implemented some menu options
Speaker 4: like barbecue men. I don't know if you guys tried it,
Speaker 4: but it just worked for a very short period of time.
Speaker 4: So for now, investors and analysts are saying okay whether
Speaker 4: this guidance was cut.
Speaker 3: In that.
Speaker 2: The stock mover's report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
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