American Eagle Outfitters Drops, Cboe Falls, Super Micro Computer Gains on DataVolt Pact

On this episode of Stock Movers:
- American Eagle Outfitters shares fall after it pulled its guidance for the full year following a first quarter that was marred by discounting and a write-down of inventory.
- Cboe Global Markets shares declined after Morgan Stanley double downgraded the stock, recommending lower defensives exposure on the back of greater than expected tariff de-escalation between China and the US.
- SuperMicro extends gains after Saudi Arabia-based data center company DataVolt signs a multi-year partnership agreement with the beleaguered US chipmaker.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,
your roundup of companies making moves in the stock market.
Harnessing the power of Bloomberg data.

Speaker 2 (00:17):
Right now, let's get a sense of what's going on
with the stock market. As John Tucker reported, we do
have a little bit of a lift here today. Let's
take a look at some stocks on the move today.
I'm Paul Sweeney along with Alex Steele. I'm're joined by
Bloombergs and Italia Kenyan Javich Tali. What are you looking at?

Speaker 3 (00:32):
Let's start the guys with Retailer's American Eagle out. As
the stock is down by more than seven percent, The
company with drew guidence for the full year. They also
said that there is a charge of about seventy five
million related to it down right down of spring and
summer merchandise. So basically this is a preliminary earnings result.

(00:54):
They will post full results at the end of May.
Of course, when it comes to guidance. The company blamed Macrican.
I'm a concertainty and as for this huge write down,
I spoke with couple analysts and potentially the main reason
they either bought stuff that they were not able to
sell because it was just like the wrong choice. Or

(01:16):
since we know that American Eagle is a value player,
potentially customers are looking for better deals. And again it
could be a sign of a cautious US consumer. But anyway,
it was a big miss, and potentially we may see
that all that those inventory will go to discounters like

(01:36):
TJ Max and the company itself is doing right now
a massive sale on website. I don't know, well if
we should check it out. I'm a teach girl, man,
I'm a tej girl. I gotta stay loyal on that front.
Oh yeah, you crazy, that's the best I first, like
most of my house at home. Guns, I'm okay. What
else you're looking at? Yes? Looking at shares of CBOE
Global Markets. So yes, we see that. Morgan Stanley the

(02:00):
downgraded the company and they said, of course that the
escalation of US and China trade war came sooner and
better than expected. Earlier they upgraded the stock citing higher volatility.
We know that when volatility is high, people are trading
options more. It can be more beneficial for companies life Sybo.

(02:20):
So now it's a reversal of this trend and they
cut the price target to two hundred and fifteen from
two hundred and fifty six. And of course we are
keeping it out on vix, which is way below twenty
for the first time since I know, a couple of
weeks and months.

Speaker 2 (02:36):
Interesting, okay, I used to trade with the Sibo back
in the day. Super Micro computer.

Speaker 1 (02:42):
That sounds like a big name.

Speaker 3 (02:43):
It is, so we see that it's also a big
move in the stock price. It's up by almost thirteen percent.
It came, of course, after this deal with Saudi Arabia.
Saudi Arabian data center company Data Vault signed a partnership
with super Micro. The deal is valued at twenty billion dollars.
We don't know all details of the deal, but basically

(03:07):
super Micro biased chips from Nvidia, They build infrastructure and
then they sell to data centers. We don't know if
Data Vault will be building those data centers here in
the United States or in Saudi Arabia. But for many analysts,
questions still remain about demand for power, demand for AI infrastructure.

(03:30):
But as of today, it is a pretty good development
that the stock is up sharply.

Speaker 1 (03:34):
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