Closing Bell: Micron Gains, Opendoor Soars, Adobe Gives Strong Outlook

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, Carol Massar and Tim Stenovec.

- Micron (MU) shares rose the most in four months after analysts touted the chipmaker’s growth potential in the data center market, where artificial intelligence services have stoked demand. Micron, the largest US maker of memory chips, is benefiting from higher-than-anticipated demand that is outstripping production, Danely said. That’s particularly true in the data center area, which accounts for more than half of Micron’s revenue, he said. 

- Opendoor (OPEN) shares surged 80% Thursday after announcing the return of its co-founders to the board and a new chief executive officer. The advance marks the biggest one-day gain for the home-flipper turned meme stock on record — continuing its blistering 1,250% run up since mid-July — after the real estate company said co-founders Keith Rabois and Eric Wu will rejoin the board and named Shopify Inc.’s Kaz Nejatian CEO. “It’s everything I could’ve asked for and more. It’s a dream team,” said Toronto-based hedge fund manager Eric Jackson of EMJ Capital Ltd., who had bought Opendoor shares at around 70 cents, in an interview. The stock closed at $10.52 on Thursday. 

- Adobe (ADBE) gave a strong quarterly revenue outlook, suggesting that the software maker is seeing a payoff from its investment in AI features.Sales will be about $6.08 billion to $6.13 billion in the period running through November, the company said Thursday in a statement. Analysts, on average, estimated a number at the bottom of that range. Profit, excluding some items, will be $5.35 to $5.40 a share, excluding some items, compared with the average projection of $5.33. The San Jose, California-based company also boosted its annual forecast.  Adobe has worked to weave artificial intelligence features, often based on its own generative models, into the company’s industry-standard products like Photoshop. That’s now helping spur growth. Shares initially rose in postmarket trading.

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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 mover's report.
The company's making moves at the close of US trading
with Carol Masser, Tim Stenebeck, Romain, Bostick, and Scarlet Food most.

Speaker 3 (00:23):
Names in the index today gaining ground four hundred and
thirty six to thepside, only sixty four losing ground.

Speaker 4 (00:28):
Similar story when you take a look at the sector
level as well, almost a perfect score ten of eleven
in the green, and you can see that circle is
incredibly green. Leading gains today. Materials the sector we don't
often see at the top of the leaderboard, but Dow
Chemical in particular had a good day. Healthcare consumer discretionary
also pick up there your lone loser, Energy, but even

(00:51):
that barely in the red.

Speaker 5 (00:52):
Before we get to the gainer's end decliners on the day,
I'll let you start with a big gainer and that
was Rent the runway of thirty percent, popping the shares,
but that's now moving low. We're in the after hours trade.
The company reporting revenue for the most recent quarter of
about eighty point nine million dollars and a loss per
share of about six dollars.

Speaker 1 (01:09):
And fifty five cents.

Speaker 5 (01:10):
I need to get you some comparisons here, but we
should point out the our providing guidance for the current
quarter of eighty two to eighty four million, which looks
like it might be just a tad bit light than
what the street was looking for. The share is pulling
back just about five percent here in the after hour session.

Speaker 3 (01:23):
Right, but as you said, a gain of thirty percent
in the regular session, So quite quite a different tone here. Hey,
I'm going to get to some of the individual gainers.
Got to talk about Warner Brothers Discovery. Guys up as
much as thirty seven percent, popping on the news that
Paramount sky Dance said to be getting ready for a
bid to buy Warner Brothers Discovery mostly cash offer our

(01:44):
Lucas Shaw and also Wall Street Journal pointing this out initially.
So this is your number one gainer in the s
and P five hundred, so some outperformance there. Finishing the
day Warner Brothers Discovery with a gain of just shy
of twenty nine percent. Another top gainer in the major
industry today synopsis, This one a gain of almost thirteen
percent up for seventh day rallying after City and Miller

(02:07):
Tayback highlighted potential upside. Oh forgive me, let me go
back to synopsis top gainering the S and P five
hundred got a lot of crazy notes because things are
moving around today.

Speaker 1 (02:16):
This Apple just goant to shake the sand off off.

Speaker 3 (02:20):
Out of my brain too. Application software company. It did
drop nearly thirty six percent in yesterday's session, that was
its worst single day decline on record due to US
export restrictions contributing to a slow down in China. So
investors coming back into this name today again up about
thirteen percent, and then this one Micron Technology ralling about
seven and a half percent again and outperformer in those

(02:41):
major indices. City and Miller Tayback highlighting potential upside when
the company reports earnings on September twenty third day, taut
of the chipmaker's growth potential in the data center market,
where AI services have stoked demand. We know that story. City,
by the way boosted its price target team to one
seventy five from one fifty, saying the company would guide
well above consensus when it reports on SIPTIMS.

Speaker 1 (03:02):
Just real quickly too, honorable mentions.

Speaker 5 (03:03):
I just want to point out Figure Technology the fintech
going public today, had a great day on the street,
up twenty four percent. And how about open Door, Tim,
I know you've been following that. It's still a relatively
small stock, but the founders are returning to the board
here seventy percent popping the stock today.

Speaker 3 (03:18):
And I just say, this is why my paper was
a mess. I had open Door and I had Figure
and then I had to cross him out because.

Speaker 1 (03:23):
No excuses on this show.

Speaker 6 (03:25):
Anyways, you got you got to make the choices right now.

Speaker 1 (03:29):
It's hard sometimes.

Speaker 6 (03:30):
That's okay on the decliner's side. Easy picks for the
worst performers in the S and P five hundred to day,
Oracle and Netflix among them. Oracle down six point two percent.
You know what, yesterday was its best day since nineteen
ninety two, up thirty six percent. In fact, just since
those earnings on September ninth, two days ago, analysts race
price targets twenty three analyst race price targets by an

(03:52):
average of thirty five percent. Still up eighty six percent
so far this year. Not really putting a dent into
this performance yesterday and this year. But the worst performer
in the S ANDP down six point two percent Netflix.
Carol mentioned the paramount's guidance Warner Brothers Discovery per potential
marriage watching Netflix in the wake of that, because Netflix

(04:13):
and YouTube and just streaming in general are a major
driving force and spinoffs and consolidation that we are seeing
in the media industry. Essentially, this would be a better
take on the streamers. Netflix taking a hit as a result,
shares did move lower after the Wall Street Journal did
report this out. Netflix down three point five percent today
and finally Delta Airlines taking a little bit of a

(04:35):
hit on the day today. This as the company. This
as the company said that the front of the cabin
is performing well but still seeing some laggards when it
comes to the.

Speaker 1 (04:45):
Main part of the cabin. Remain a big after hours mover.

Speaker 5 (04:47):
Right now is Adobe that company out with earnings the
shares The knee jerk reaction is to the upside. The
company is saying that in the most recent quarter, revenue
did come in slightly above guidance a five point nine
nine billion dollars a similar story for EPs five dollars
and thirty one cents. The street was looking for five
to eighteen. Here's your forecast going forward for the full
fiscal year, which basically just includes one more quarter revenue

(05:10):
of twenty three point sixty five to twenty three point seven.
That is a slight raise in guidance from the previous
outlook that it had provided. Similar story for digital media
revenue as well as the digital experience revenue digital media
revenue for the fourth quarter, the company says four point
five to three to four point five six billion is
what to expect the street on average coming into today,

(05:32):
guys was looking for four point five to one. That
means the lower end of the range is above the
average of street estimates.

Speaker 4 (05:37):
And you can see shares flying right now as we
have up on the screen. This is a story that
needed to happen for Adobe. Shares down about twenty one
percent coming in to today's print. Year to date, and
as we've been discussing, Adobe has become sort of the
poster child for being left behind on the software side
when it comes to AI in hardware, that's probably Apple

(05:57):
that has that crown, but Adobe maybe climbing out a
little bit from that whole.

Speaker 3 (06:02):
A little bit of commentary the company's saying and its release.
Given our customer strategy, AI product innovation and strong go
to market execution or please to once again raise our
fiscal year twenty five total revenue and EPs target. So
that explains also why you're seeing investors pretty excited as well.
Stock up about seven percent here in the aftermarkt Yeah.

Speaker 6 (06:21):
Dan Dern, Executive Vice president CFO, echoing the comments from
Chantanu Nerai and the company CEO, saying that they're raising
their fiscal year revenue and EPs targets. They're executing against
a growth strategy to deliver category leading and AI and
FUSE solutions to meet the diverse needs of our customers.
Shares taking the search hire today.

Speaker 2 (06:42):
This stock mover's report from Bloomberg Radio. Check back with
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