Closing Bell: Klarna Climbs in Debut, Oracle Soars, Synopsis Drops

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, Katie Greifeld, Jess Menton and Lisa Mateo.

- Klarna (KLAR) rose 15% in its trading debut after the company and some of its backers raised $1.37 billion in an initial public offering that signals the market for new listings has room to run. The financial services company’s shares, which rose as much as 43% Wednesday, closed at $45.82 each in New York, above the IPO price of $40 apiece. The double-digit oversubscribed offering priced on Tuesday above the marketed range, and about half of the prospective investors placing orders were left empty handed.

- Oracle (ORCL) shares gained the most since 1992 after the company gave an aggressive outlook for its cloud business, cementing the software maker’s place in the race to support demand for artificial intelligence computing. The stock surged 36% Wednesday in New York, bringing its market valuation to about $933 billion. The rally temporarily turned co-founder Larry Ellison into the world’s richest person, with the tech magnate passing Elon Musk for a few hours. AI-related stocks such as chip developer Nvidia Corp. and Asian suppliers also climbed.

- Synopsis (SNPS) shares suffered their worst single-day decline on record after the company warned that US export restrictions are contributing to a slowdown in China, the largest market for semiconductors. As part of the company’s quarterly report on Tuesday, Chief Executive Officer Sassine Ghazi said that a push to develop its own intellectual property isn’t achieving the desired results — partly because of the China challenges. Ghazi said he would be refocusing resources on other areas and is reducing the company’s headcount by about 10%. 

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.

Speaker 2 (00:09):
This is the closing bell on this stock movers report
the company's making moves at the close of US trading
with Carol Master, Tim Stenebeck, Romain Bostik, and Scarlet.

Speaker 3 (00:21):
Foo taking a check at advancers and decliners around over
one hundred and eighty companies hired today, about thirty seven
percent of the index at three hundred and sixteen lower
or sixty three roughly percent.

Speaker 4 (00:33):
Katie, and let's take a look at the sector level.
Interesting breakdown here. You had slightly more losers than winners
when you take a look at that circle. But if
you're wondering what that bright green area is, that, of
course is tech. We know it was a big day
in the tech space, Oracle again, but also energy having
a good day as well, Utilities too getting in on
the action. Would didn't do so hot today. Consumer discretionary

(00:56):
your biggest loser on a percentage basis, Consumer staples as well,
having a bad month and having a bad day, down
about one percent.

Speaker 3 (01:04):
And of course looking at the gainers, guys have to
bring up Klarna, the buy now pay leader. Of course,
made Bailey lipschutzit here earlier breaking it down for us,
so looking at how it prices IPO above its range
and raised about one point four billion dollars. So at
the opened rising as much as thirty percent, and of
course Katie was just mentioning Oracle ol CL here for

(01:26):
the ticker actually jumping at thirty six percent, so it's
a best day since December nineteen ninety two. So the
Wall Street Journal having that report that openingy signed a
contract to persons three hundred billion dollars in computing power
over roughly five years from Oracle, and then you're looking
over at other companies related to that. So Broadcom up
close to ten percent. It's best day since April ninth,

(01:48):
so rising on the back of that. So it's kind
of leading the chip sector rally there with its CEO
actually talking about a potential for a big payday if
you can hit challenging new targets for artificial intelligence and
then asset entities. The ticker is ASST that's jumping looking
at twenty nine percent. Hired's best day since August eleventh,
and so what happened here at shareholders did approve a

(02:11):
striveverger here, so looking at that stock more than doubling
when you're trading there and seeing how that shakes out
for the gators there. So Lisa, what are you looking
at for decliner?

Speaker 5 (02:19):
Okay, decliners, I have to go to Synopsis Sticker SNPs.
Their shares closed down more than thirty five percent, a
big downer. It warned that US export restrictions they're contributing
to a slowdown in China, and that is its largest
market for semiconductors. So At CEO said a couple of things.
He said he would be refocusing those resources on other areas.
I said, they're reducing the company's headcount by ten percent.

(02:42):
Also reported things like third quarter results should a week
read on design ip revenue, gave an earnings outlook that
was a little bit weaker than expected. I also want
to point out chewy tticker Cchwy. Their shares closed down
about sixteen percent. So basically what this is, it's going
to give up some profit to get a larger share
of the pets supplies market. That was even if it

(03:03):
meant disappointing Wall Street, which it did. So it reported
those second quarter results raise its full year sale guidance,
but the company backed its profitability outlook right It plans
to reinvest those top line gains into pricing growth driver
growth drivers like its paid membership program.

Speaker 1 (03:19):
I don't know.

Speaker 5 (03:19):
I don't have a dog. I'm allergic.

Speaker 3 (03:21):
So that's how you go.

Speaker 5 (03:23):
Sorry, sorry so much. I know my kids ask me
for dogs all the time. It's not going to happen.
I quickly want to touch on HPA tick R HPQ.
Their shares down closed down about one percent. It basically
this is an upgrade down grade scory it was. It
was downgraded to inline from outperform at ever evercore ISI.

Speaker 1 (03:44):
Yeah, let's go take a quick look at yields right now.
Basically a drop down the curve with actually more of
the activity on the longer end of the curve. And
this is actually going to really play into this idea
as to what's been going on with regards to inflation.
That PPI report this morning. While on the top line,
it did seem to show that there was some containment
in the space, we should point out under the hood,
when you look at wholesaler margins, you have a lot

(04:05):
of wholesalers eating the costs of those tariffs. That means
they're not passing it down to the consumer. That might
bode well for the CPI report tomorrow morning. But the
big question is how much longer does that last? I
do want to turn back to socks, and before we
move on to what happened with Oracle, I do just
want to mention Klarna, of course, in the clothes on
the day there we did go the clothes right at
that forty five eighty two level. So relatively successful day

(04:26):
for the newest entrance to the market and IPO at
forty dollars and open today at fifty two in a
close just below forty six.

Speaker 2 (04:35):
This stock Movers report from Bloomberg Radio. Check back with
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