Boeing Falls, Oracle Rises, Oxford Drops on Slashed Profit Forcast

On this episode of Stock Movers:
- Boeing (BA) shares drop after 787 Dreamliner aircraft operated by Air India crashed shortly after taking off in Ahmedabad, with 242 passengers and crew on board, and no reports of survivors.
- Oracle (ORCL) shares rose after projecting cloud infrastructure sales will jump more than 70% in the current fiscal year, boosting investor enthusiasm for the closely watched business.
- Oxford Industries (OXM) shares fell after the owner of the Tommy Bahama apparel brand slashed its profit forecast for the fiscal year

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg data.

Speaker 3 (00:17):
Let's take a look at some of the stocks in
the move today. Im Alex deal with Paul Sweeney. We're
joining in by Bloomberg. Isabelle Lee. Gotta start on Boeing.
What's the latest and what's.

Speaker 1 (00:25):
With the stock? The stock is down four point three percent,
that's the biggest decliner is an S and P five hundred.
So again, of course, this comes after the fatal plane
crash that killed more than two hundred people. There were
no reports of survivors and the Boeing seven eight seven
Dreamliner was operated by Air India and bound for London
and it crashed shortly after taking off. And this is
the worst disaster involving Boeing's bost advanced twin aisle aircraft.

(00:49):
So shares of its suppliers General Electric and Aerosystems also
down by more than two percent, and based on a
number of people on board, this would be the worst
commercial air crash since ty fourteen, according to Aviation Safety Network.
It's just really scary and Boeing has had a string
of accidents since twenty eighteen and twenty nineteen.

Speaker 2 (01:06):
Yep, yep, you just kind of thought they were turning
the quarter. The stock just kind of turning the quarter,
putting some.

Speaker 1 (01:11):
Of that in the rear view mirror, and here we
go against We have to see how that plays out.

Speaker 2 (01:15):
What's happening with Oracle.

Speaker 1 (01:16):
Oracle is rising twelve percent. This is an all time high.
So this comes after the company projected cloud infrastructure sales
will jump more than seventy percent in the current fiscal year.
So obviously this got investors excited, boosting enthusiasm. So the
company is long known for its databased software and it's
been gaining traction and its effort to really just become
a major player in the business of cloud computing, which

(01:36):
is to put it simplistically and basically it's just really
renting out computer power and storage. They've been targeting clients
focused on AI work and they found our niche in
renting out AI focused computer power as other industry giants
like Amazon has really been stretched to the limit. So
the past month, the stock has climbed seventeen percent as
investors just really grow more optimistic on the stock.

Speaker 3 (01:58):
Yeah, I was. We broke earnings as they can came out.
An initial reaction to the stock was actually lower. But
then this, this was the sentence that I had found
in the report. We expect total cloud growth rate applications
plus infrastructure will increase from twenty four percent in the
full year twenty twenty five to over forty percent in
the full year of twenty twenty six. The cloud infrastructure
growth rate is expected to be over seventy percent.

Speaker 1 (02:20):
Yes, that's a wild number. And the stock tickers or
cl all right, yeah, just keeped on giving the cloud
the AI thing.

Speaker 3 (02:27):
Everybody's yeah, but you know, it's it's it seems like
it's the AI cloud infrastructure part now where a lot
of the focus is being turned to our.

Speaker 1 (02:34):
Let's go to Oxford.

Speaker 3 (02:35):
So Oxford makes the Tommy Bahama stuff, right, Lily Pulitzer,
Tommy Bahama, Lily Pulitzer, Southern Tide, the Bonnett Company, Duckhead,
Johnny Weston, Jack Rocketters.

Speaker 1 (02:44):
None of them sound familiar to me, actually, And.

Speaker 3 (02:47):
You know that's okay as well, that's a okay.

Speaker 2 (02:52):
For you, sure, okay, I mean you're going to wear tomorrow?

Speaker 1 (02:56):
Yes, oh, yeah, that's not, Tommy, Yeah, it's not. It's
just summert now forty degree celsius there forty oh my
thereelshod here, that's probably.

Speaker 3 (03:07):
One hundred ninety yeah, yikers, all right.

Speaker 1 (03:10):
Also the stock oh exam, oh right, let's get it.
It's down by nearly ten percent. The company slash its
profit forecast for the fiscal year. They reported EPs close
to estimates and sales above estimates. So True said that
they remain cautious in Oxford's outlook, especially given an uncertain
second half of the year. City said it's not surprising
that they cut guidance again due to tariff and especially

(03:31):
considering the company's exposures to China. I feel like this
is the reason over and over again for companies.

Speaker 2 (03:38):
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