May 21, 2025 • 7 mins
On this episode of Stock Movers:
Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Alix Steel, Scarlet Fu, Carol Massar and Tim Stenovec.
- Alphabet (GOOGL) shares gained after the company said it will offer “AI mode” in search to all US users, showing its commitment to redesigning its core business to keep pace with new rivals in the artificial intelligence age. “We want to get our best models into your hands,” Chief Executive Officer Sundar Pichai said Tuesday at the company’s developer conference in Mountain View, California. “So we are shipping faster than ever.” Alphabet’s stock rose much as 5.6% on Wednesday after some analysts expressed confidence that the company can reorient its search product.
- Apple (AAPL) shares slumped on the news that OpenAI will acquire an AI device startup co-founded by former Apple veteran Jony Ive in a nearly $6.5 billion all-stock deal, joining forces with the legendary designer to make a push into hardware. The purchase — the largest in OpenAI’s history — will provide the company with a dedicated unit for developing AI-powered devices. Acquiring the secretive startup, named io, also will secure the services of Ive and other former Apple designers who were behind iconic products such as the iPhone. For the British-born designer, the move marks a high-profile return to a consumer technology industry he helped pioneer. Working for years alongside Steve Jobs, he crafted the look and feel of the modern smartphone, in addition to the iPod, iPad and Apple Watch. He left Apple in 2019.
- Target (TGT) shares fell today after it cut its sales forecast following a sharp pullback in consumer spending and a hit from tariffs and boycotts. The report raised questions over CEO Brian Cornell’s ability to recapture growth after two years of choppy results — especially as economic turbulence is growing. “It’s a great brand. It’s actually a great company. It just looks to us like it needs a new leadership,” said Bill Smead, chief investment officer of Smead Capital Management, which has owned the stock since 2017.Target’s current management has struggled to navigate through cultural and political landscapes, Smead said, referring to the backlash around its Pride collection in 2023 and boycott calls after the company decided to halt diversity initiatives this year.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the closing bell on the Stock Mover's report
the companies making moves at the close of US trading,
with Carol Master, Tim Stenebeck, Romain Bostik, and Scarlett Foo.
Speaker 3 (00:22):
The worst performer fair Isaac. We also had a tough
day yesterday. Right, it's down another sixteen percent in today's session.
Best performing name, it's gonna be one of my gainers, guys,
it's Alphabet, but oh deep t take it away, Scarlett.
Speaker 4 (00:34):
All right, let's take a look at the imapp A
lot of red there. You mentioned Alphabet, Carol and Alphabet
as well as Netflix, but just bareley are basically supporting
the communications services sector. And you can see that's the
one loan slice of the pie that is green. That
group is up about two thirds of one percent, and
you have three sectors down at least two percent. Two
of them are rate sensitive reads and financials and healthcare
(00:55):
losing two point four percent because of United Health.
Speaker 3 (00:57):
All right, guys, there were a few gainers, as Scarlet
just mentioned, Alphabet certainly among them, up as much as
five and a half percent, and it's highs finishing the
day of the two point eight percent gain. It was
pretty much your biggest gainer in the S and P
five hundred Nasdaq one hundred. What happened is the company
said it will offer AI mode in search to all
US users, so kind of AI mode terbo mode, Like.
Speaker 5 (01:19):
Exactly, yeah, I pay for it, but okay.
Speaker 3 (01:23):
Hey, it's show gets commitment to redesigning it's core business
to keep pace with its new rivals.
Speaker 6 (01:28):
You know, AI mode.
Speaker 3 (01:29):
You do anything with AI and everybody gets excited. But
right as Alex said, you're gonna have to pay for it.
Defied development folks. A small market cap for NDER thirty
eight million, but it was up forty percent here pretty
much at its highs, all time highs a blockchain developer.
And this is after Solana said it instituted a seven
for one forward stock split today. So we saw this
(01:49):
one also benefiting in the trade. And here's another one
I don't really talk about it, and a lot dey
is the ticker di Com Industries six and a half
billion dollar market cap. Bill fiber optic systems for cable
TV operators boosted it to your forecast for contract revenue growth,
and so this one definitely an app performer.
Speaker 6 (02:07):
And the stacks up about thirty percent.
Speaker 3 (02:09):
There's a few other honorable mentions like Canada, Goose and Corwy, but.
Speaker 6 (02:13):
I'll just have to go to the Bloomberg to check
that out.
Speaker 7 (02:15):
Okay, nice tease, Yeah, hey, easy job for me today
with the decliners, I do want to start with shares
Apple falling two point three percent. It was the biggest
decliner on a points basis in the S and P
five hundred shares fell right when we learned about open
Ai acquiring the AI device startup co founded by Apple
veteran Johnny Ive in this nearly six and a half
(02:35):
billion dollar all stock deal. But that was also the
time that we got that soft twenty year auction that
led yields to spike, So worth noting not necessarily those
two things correlated, But you can't talk about Johnny I
without talking about his history at Apple and the way
that Apple has missed out on the AI boom over
the last couple of years. Check out mark Erman's reporting
for that also shares a target down by two five
(02:56):
point two percent today, excuse me. Shares fell close to
eight percent at one one point in the day, the
company cut its sales forecast following a sharp pullback and
consumer spending and ahead from tariffs and boycotts. A little
different than what we saw from Walmart last week for
a couple reasons. One of them has to do with
the fact that Target sells more discretionary items to consumers
rather than groceries, whereas Walmart has about fifty percent of
(03:18):
its sales as groceries, so those are not discretionary items.
Consumers have to buy those things, so it buffers in
an environment such as this. Target said Wednesday it expects
net sales to decline by a low single digit this year,
down from previous guidance for an increase of about one percent.
Questions also being raised about Brian Cornell's tenure at the.
Speaker 6 (03:36):
Company and the turnaround here. What's that? What's going on
by Brian Cornell?
Speaker 7 (03:39):
Well, look, in twenty twenty two, they said he'd be
there for at least three more years, and he's had
many years. He's been there since twenty fourteen. He's a
veteran of Walmart. He was the head of Sam's Club
at Walmart. He's at PEPSI also got a great pedigree
he did. Have you looked at Don't you feel like
I've been having this story of this conversation about Target's
turnaround for years.
Speaker 6 (03:59):
At this point, yes, do one percent.
Speaker 5 (04:01):
I had inventory issues in COVID, then it was the
DEI issues. There's been some issue after issue that's Target
specific in many ways, and then not the macro, which
is also a problem.
Speaker 6 (04:10):
I just want to put this into perspective.
Speaker 1 (04:12):
Over the last twelve months, share the down forty percent,
Walmart shares are up forty eight percent. You go, you've
picked any sort of their other competitors, where at it's
the dollar stores, BJ's Costco. You also see similar extreme
underperformance relative to some of those.
Speaker 7 (04:27):
You can't say it's all because the discretionaries not having
growth exact right.
Speaker 6 (04:30):
I don't think it's cool anymore.
Speaker 3 (04:31):
I used to love when it used to do the
designer collaborations, and it was kind of fun and they
would have people line up ye hours.
Speaker 6 (04:37):
They just I don't know.
Speaker 3 (04:38):
I go in there and I feel like it's the
same old stuff.
Speaker 5 (04:41):
Yeah, and just maybe a little bit more expensive.
Speaker 6 (04:43):
I was just going to say that you get more expensive,
you never.
Speaker 3 (04:46):
Leave Target without at least spending one hundred hundred and
fifty dollars.
Speaker 6 (04:48):
True, you want to hit yields alex oh, I do
yes yields.
Speaker 5 (04:52):
They moved higher. It was the big story of the
day that twenty year failed auction. They were already trading
heavy on the back end before the auction, but after
that auction, you definitely saw a I hired the thirty
year yield now the highest levelce in October of twenty
twenty three. Did not see buyers come in once the
thirty year breached the five percent.
Speaker 1 (05:06):
All right, well, speaking of a spike, Hire Shares a snowflake,
the enterprise software company that's been trying to turn itself
into an AI company up three percent in the after
hours trade after just reporting earnings. First quarter revenue did
beat at about one point oh four billion. First quarter
adjusted diluted EPs also beat at about twenty four cents
a share. The company says that for the second quarter
it is expecting revenue in the range basically a one
(05:28):
point oh four so no real range here, but that
is above the average of analyst estimates by just a here.
The company also saying that for the full year it
expects its product revenue to be four point three to
three billion. That's an upgrade from its previous forecast a
four point two eight billion and above street estimates of
four point two nine. The shares now well six percent
in the after hours trade.
Speaker 4 (05:49):
All right, let's look at Urban Outfitters, the specialty apparel company.
Net sales for the first quarter beat analyst estimates, and
if you look at the two biggest brands, Urban Outfitters
itself and Anthropology, those numbers also coming in better than
anticipated segment sales, so comparable sales up two point one
percent when analysts were looking for a drop. No indication
yet of the outlook, so that'll be perhaps in the
(06:11):
earnings call with any kind of commentary about tariffs and
all of that.
Speaker 3 (06:14):
All right, one more before we bail out. Here, I
got Zoom Communications. It's bouncing around the aftermarket up about
one and a half percent here. This after the company
came out and boosted its revenue guidance for the full year,
the guidance beating the average analyst estimate, and it also
sees a just a dps five fifty six to five
fifty nine. Had seen five thirty four to five thirty
seven estimates five thirty six.
Speaker 6 (06:34):
So that's bouncing around up about two percent, and just
real quickly before you go.
Speaker 1 (06:38):
Keryl Luhman shares right now smiking more than twenty percent. Here,
the main headline at and T is going to buy
Lumen's mass markets fiber business.
Speaker 6 (06:45):
OH shares a lot more than twenty percent.
Speaker 2 (06:48):
The Stock Movers report from Bloomberg Radio. Check back with
us throughout the day for the latest roundup of companies
making news on Wall Street and for the latest market
moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Bloomberg dot com, and on Applecarplay and Android Auto with
the Bloomberg Business app.
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the closing bell on the Stock Mover's report
the companies making moves at the close of US trading,
with Carol Master, Tim Stenebeck, Romain Bostik, and Scarlett Foo.
Speaker 3 (00:22):
The worst performer fair Isaac. We also had a tough
day yesterday. Right, it's down another sixteen percent in today's session.
Best performing name, it's gonna be one of my gainers, guys,
it's Alphabet, but oh deep t take it away, Scarlett.
Speaker 4 (00:34):
All right, let's take a look at the imapp A
lot of red there. You mentioned Alphabet, Carol and Alphabet
as well as Netflix, but just bareley are basically supporting
the communications services sector. And you can see that's the
one loan slice of the pie that is green. That
group is up about two thirds of one percent, and
you have three sectors down at least two percent. Two
of them are rate sensitive reads and financials and healthcare
(00:55):
losing two point four percent because of United Health.
Speaker 3 (00:57):
All right, guys, there were a few gainers, as Scarlet
just mentioned, Alphabet certainly among them, up as much as
five and a half percent, and it's highs finishing the
day of the two point eight percent gain. It was
pretty much your biggest gainer in the S and P
five hundred Nasdaq one hundred. What happened is the company
said it will offer AI mode in search to all
US users, so kind of AI mode terbo mode, Like.
Speaker 5 (01:19):
Exactly, yeah, I pay for it, but okay.
Speaker 3 (01:23):
Hey, it's show gets commitment to redesigning it's core business
to keep pace with its new rivals.
Speaker 6 (01:28):
You know, AI mode.
Speaker 3 (01:29):
You do anything with AI and everybody gets excited. But
right as Alex said, you're gonna have to pay for it.
Defied development folks. A small market cap for NDER thirty
eight million, but it was up forty percent here pretty
much at its highs, all time highs a blockchain developer.
And this is after Solana said it instituted a seven
for one forward stock split today. So we saw this
(01:49):
one also benefiting in the trade. And here's another one
I don't really talk about it, and a lot dey
is the ticker di Com Industries six and a half
billion dollar market cap. Bill fiber optic systems for cable
TV operators boosted it to your forecast for contract revenue growth,
and so this one definitely an app performer.
Speaker 6 (02:07):
And the stacks up about thirty percent.
Speaker 3 (02:09):
There's a few other honorable mentions like Canada, Goose and Corwy, but.
Speaker 6 (02:13):
I'll just have to go to the Bloomberg to check
that out.
Speaker 7 (02:15):
Okay, nice tease, Yeah, hey, easy job for me today
with the decliners, I do want to start with shares
Apple falling two point three percent. It was the biggest
decliner on a points basis in the S and P
five hundred shares fell right when we learned about open
Ai acquiring the AI device startup co founded by Apple
veteran Johnny Ive in this nearly six and a half
(02:35):
billion dollar all stock deal. But that was also the
time that we got that soft twenty year auction that
led yields to spike, So worth noting not necessarily those
two things correlated, But you can't talk about Johnny I
without talking about his history at Apple and the way
that Apple has missed out on the AI boom over
the last couple of years. Check out mark Erman's reporting
for that also shares a target down by two five
(02:56):
point two percent today, excuse me. Shares fell close to
eight percent at one one point in the day, the
company cut its sales forecast following a sharp pullback and
consumer spending and ahead from tariffs and boycotts. A little
different than what we saw from Walmart last week for
a couple reasons. One of them has to do with
the fact that Target sells more discretionary items to consumers
rather than groceries, whereas Walmart has about fifty percent of
(03:18):
its sales as groceries, so those are not discretionary items.
Consumers have to buy those things, so it buffers in
an environment such as this. Target said Wednesday it expects
net sales to decline by a low single digit this year,
down from previous guidance for an increase of about one percent.
Questions also being raised about Brian Cornell's tenure at the.
Speaker 6 (03:36):
Company and the turnaround here. What's that? What's going on
by Brian Cornell?
Speaker 7 (03:39):
Well, look, in twenty twenty two, they said he'd be
there for at least three more years, and he's had
many years. He's been there since twenty fourteen. He's a
veteran of Walmart. He was the head of Sam's Club
at Walmart. He's at PEPSI also got a great pedigree
he did. Have you looked at Don't you feel like
I've been having this story of this conversation about Target's
turnaround for years.
Speaker 6 (03:59):
At this point, yes, do one percent.
Speaker 5 (04:01):
I had inventory issues in COVID, then it was the
DEI issues. There's been some issue after issue that's Target
specific in many ways, and then not the macro, which
is also a problem.
Speaker 6 (04:10):
I just want to put this into perspective.
Speaker 1 (04:12):
Over the last twelve months, share the down forty percent,
Walmart shares are up forty eight percent. You go, you've
picked any sort of their other competitors, where at it's
the dollar stores, BJ's Costco. You also see similar extreme
underperformance relative to some of those.
Speaker 7 (04:27):
You can't say it's all because the discretionaries not having
growth exact right.
Speaker 6 (04:30):
I don't think it's cool anymore.
Speaker 3 (04:31):
I used to love when it used to do the
designer collaborations, and it was kind of fun and they
would have people line up ye hours.
Speaker 6 (04:37):
They just I don't know.
Speaker 3 (04:38):
I go in there and I feel like it's the
same old stuff.
Speaker 5 (04:41):
Yeah, and just maybe a little bit more expensive.
Speaker 6 (04:43):
I was just going to say that you get more expensive,
you never.
Speaker 3 (04:46):
Leave Target without at least spending one hundred hundred and
fifty dollars.
Speaker 6 (04:48):
True, you want to hit yields alex oh, I do
yes yields.
Speaker 5 (04:52):
They moved higher. It was the big story of the
day that twenty year failed auction. They were already trading
heavy on the back end before the auction, but after
that auction, you definitely saw a I hired the thirty
year yield now the highest levelce in October of twenty
twenty three. Did not see buyers come in once the
thirty year breached the five percent.
Speaker 1 (05:06):
All right, well, speaking of a spike, Hire Shares a snowflake,
the enterprise software company that's been trying to turn itself
into an AI company up three percent in the after
hours trade after just reporting earnings. First quarter revenue did
beat at about one point oh four billion. First quarter
adjusted diluted EPs also beat at about twenty four cents
a share. The company says that for the second quarter
it is expecting revenue in the range basically a one
(05:28):
point oh four so no real range here, but that
is above the average of analyst estimates by just a here.
The company also saying that for the full year it
expects its product revenue to be four point three to
three billion. That's an upgrade from its previous forecast a
four point two eight billion and above street estimates of
four point two nine. The shares now well six percent
in the after hours trade.
Speaker 4 (05:49):
All right, let's look at Urban Outfitters, the specialty apparel company.
Net sales for the first quarter beat analyst estimates, and
if you look at the two biggest brands, Urban Outfitters
itself and Anthropology, those numbers also coming in better than
anticipated segment sales, so comparable sales up two point one
percent when analysts were looking for a drop. No indication
yet of the outlook, so that'll be perhaps in the
(06:11):
earnings call with any kind of commentary about tariffs and
all of that.
Speaker 3 (06:14):
All right, one more before we bail out. Here, I
got Zoom Communications. It's bouncing around the aftermarket up about
one and a half percent here. This after the company
came out and boosted its revenue guidance for the full year,
the guidance beating the average analyst estimate, and it also
sees a just a dps five fifty six to five
fifty nine. Had seen five thirty four to five thirty
seven estimates five thirty six.
Speaker 6 (06:34):
So that's bouncing around up about two percent, and just
real quickly before you go.
Speaker 1 (06:38):
Keryl Luhman shares right now smiking more than twenty percent. Here,
the main headline at and T is going to buy
Lumen's mass markets fiber business.
Speaker 6 (06:45):
OH shares a lot more than twenty percent.
Speaker 2 (06:48):
The Stock Movers report from Bloomberg Radio. Check back with
us throughout the day for the latest roundup of companies
making news on Wall Street and for the latest market
moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Bloomberg dot com, and on Applecarplay and Android Auto with
the Bloomberg Business app.
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