Closing Bell: Netflix Soars, Lockheed Martin Sinks, Vera Bradley Lower

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, Scarlet Fu, Alix Steel, David Gura and Norah Mulinda.

- Netflix (NFLX) shares soared today as investors like what CEO Greg Peters had to say at a conference in London. Speaking at the event, the streamer's leader said he was optimistic about Netflix's growth prospects despite President Donald Trump's threats to impose tariffs on the film industry.

- Lockheed Martin (LMT) shares fell as much as 7% on the news that the Air Force is cutting in half its request to Congress for F-35s. A Defense Department procurement request document sent to Capitol Hill this week asked for 24 of the planes, down from 48 that was forecast last year. The proposed cut is significant because the Air Force is the largest customer for the world’s biggest weapons program. The scaling back of the F-35 request may reflect one way the service is revising its funding for fiscal 2026 to comply with Defense Secretary Pete Hegseth’s plan to shift projected US military spending by 8% over the next five years.

- Vera Bradley (VRA) shares fell as much as 24%, a record drop, after the retailer suspends guidance and announced the departure of its CEO. The pulled guidance reflects executive and board leadership changes and “significant uncertainty surrounding the consumer environment,” the company said.

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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 Master, Tim Stenebeck, Romain Bostik, and Scarlett fu Well.

Speaker 3 (00:22):
Let me take you through some of the gainers that
I was watching over the course of the day. Netflix
is one of them. NFLX, of course, and Greg Peters,
the co CEO of that company, speaking at a Wall
Street Journal event in London, expressing some optimism to hear
about that company's ability to kind of weather the uncertainty
that we're seeing all around the world because of trade talks.
Of course, the President threatened to impose new tariffs on
the filmmaking and movie making industry as well. He sag

(00:44):
Netflix continues to be optimistic. It's going to make those
movies overseas. It's going to stay the course, makes a
lot of them in the United Kingdom where he was speaking,
plans to invest more than a billion dollars over the
next four years on shows and movies that are shot
in Spain, continuing its focus on games. Golden another one
I've been watching over the course of the day. Bank
of America maintaining a buy on Goldben Sachs with a

(01:05):
price target of seven hundred dollars. Again, the theme here
is resilience in an uncertain environment and attributing a particular
promise to its asset and wealth management business. The last
gainer I'm flagging here is McKesson, it raising it's earning
focus work forecast because of broad based operational momentum. Morgan
Stanley maintain and overweight on McKesson, racing its price target

(01:25):
from seven forty five to seven seventy again saying it's
well positioned to manage risks.

Speaker 1 (01:29):
Kind I just had a couple of honorable mentions. Ochlo
having a great day, their best day going back basically
since they back to their highest levels, I should say,
since they went public, and that's on the back of
an announcement that they are going to be at the
intended awardee of a new US Department of Defense contract.
And also Voyager it went public today.

Speaker 4 (01:46):
Guys, really big name. I mean, we were seeing a
lot of the shares surging today for a really good IPO.
But let's look at some of the names that are
in the red today. I had eyes on Lockheed Martin.
This is, of course, of the US defense contractor. We
saw shares down four point two percent. That's the biggest
drop since April. And this is after the Bloomberg reported
that the Air Force had cut its request in half

(02:08):
its request to Congress for F thirty five jets. Of course,
this is really weighing on defense contractors, not only Lockheed,
but we were seeing some of its peers down as well.
But I'm also looking at Chewy now. We saw shares
of this company falling for their worst daily performance since
August twenty twenty three. That's down eleven percent. This is
an online pet food pet retailer, a lot of different

(02:29):
foods that you can get there for your pets.

Speaker 5 (02:31):
But this is a companies too.

Speaker 1 (02:32):
Don't forget the treats.

Speaker 2 (02:34):
So see, I don't have a pet.

Speaker 4 (02:35):
I'm sorry. My pets are back in Virginia with the parents.
But we did see gross margin and free cash flow
falling short of expectations here, but it did reiterate its
annual sales target. And lastly, another person, I'm a little
bit of both. I'm not gonna lie, you know, I
split I split the line here.

Speaker 1 (02:53):
I'm a dog person. I think Scarlett's dog person and
you are Tim welcome coming. That was a was Alex
Steele letting you know who what side she's on.

Speaker 4 (03:01):
I love it, I love it well. Also Vera Bradley,
this is a name that a lot of people know
in the retail space. We're seeing shares of that company
falling for their worst stay since the pandemic twenty twenty,
down for double digit losses, down nineteen percent. The company
suspended as guidance, but also announced the departure of its CEO,
So that polled guidance is really reflecting executive and board
leadership changes and significant uncertainty consumer concerning the consumer environment

(03:24):
there and.

Speaker 5 (03:25):
No surprise here, oklow is going to offer some stock?
Makes sense, great day Bessons's ibo. Why not those bankers
making some money on that. Okay, let's go to the
bond market here. So buying all across the curve, less
in the back end, more on the front end, the
two year yield down by about seven basis points below
that four percent level, you wind up having that benign
CPI stops couldn't catch a sustained bid, but bonds could

(03:46):
as yields move lower. The dollar though couldn't either, So
that was a quite interesting dynamic.

Speaker 1 (03:51):
Yeah, kind of interesting too. We should point out as well,
of course, you know, obviously the economic data that we're
going to keep an eye on for the rest of
the week with PPI tomorrow, and of course the consumer
sent data coming out at the end of the week
out of you miss but don't forget, we get some
earnings too out of Oracle as well, So maybe another
read after the bill today here on the AI trade, And.

Speaker 6 (04:10):
Don't forget you also have the third year bond auction
tomorrow as well, which.

Speaker 3 (04:13):
Is going to be a big one.

Speaker 1 (04:14):
Yeah, well, did you see the ten year bond auction today?
I was kind of that did come in a little
bit less than what you saw coming into that as well. Here,
I think Oracle guys is now crossing the wire. Let's
get right to it. Here Oracle shares at least the
knee jerk reaction, you see that right now to the upside.
With fourth quarter adjusted EPs at a dollar seventy a share,
that is a beat the street was looking for a

(04:34):
dollar sixty four. Revenue also looks like it came in
above street estimates fifteen point nine billion. The street was
looking for fifteen point six cloud infrastructure in the most
recent period, coming in just a touch light three billion dollars.
The street was looking for three point seven billion dollars,
and we should just point out margin in the most
recent quarter that came in pretty much on the nose, guys,

(04:56):
at forty four percent.

Speaker 6 (04:57):
All right, let's also get you a read on the
consumer here. We're taking a look at Oxford Industries and
I'm going to pull up the earnings right now OXFD.
The results are as follows. Actually you know what, no, OhFM,
Sorry guys, OXM Equity, this is really sard Yeah good,
the more good were good? Okay. Oxford Industries first quarter
justed EPs a dollar eighty two, beating the consensus assessment

(05:19):
by one penny. In terms of the outlook here, second
quarter net sales will be anywhere from three hundred ninety
five to four hundred and fifteen million. Analysts we're looking
for on average four hundred eleven million, and Oxford says
it sees second quarter adjusted EPs of as much as
a dollar twenty five, whereas analysts we're looking for two
dollars and twenty one cents. I'm not sure if we're

(05:39):
comparing likewood like here. But if we are that is
a big miss on that outlook for the second quarter
adjusted EPs said, you can see the stock right now
down eight and a half percent in after our trading,
And of course Oxford includes brands like Lilid, Pulitzer and
Tommy Bahama.

Speaker 5 (05:53):
All right, going back to Oracle for a second, guys,
because the stock is lower, But I mean the numbers
are pretty good. And the CEO saying riy Elson that look,
twenty twenty five was actually very good year, but they
think twenty twenty six will be even better. Their cloud
infrastructure growth rates expected to increase from fifty percent for
its full year twenty twenty five to over seventy percent
in the full year twenty.

Speaker 3 (06:13):
Six stood out to me as well. I was just
going to pile on there and say that they're optimism.
They're about the growth of cloud computing certainly coming through
here in these earnings that we got this afternoon.

Speaker 4 (06:21):
Definitely, I mean, we're seeing a lot of these tech
names really just roaring. I mean, I think we see
Oracle as we're digesting a lot of these results. Focus
is really on tech here.

Speaker 1 (06:30):
The focus is on tech here, and let's walk through
some of the individual segments there, because that gives you,
i think why maybe a little bit more of a
sense of why we're seeing them down when we talk
about that cloud service has been so it was still
a growth rate of about fourteen percent, but some of
the whisper numbers coming in was looking for something closer
to twenty percent. Cloud licensed revenue that was up about
nine point two percent. Hardware revenue, I'm not sure how

(06:51):
much of important that is. That was up about a percent,
but the services revenue was down and that was down
about one point eight percent. That also came in below
street estimates as well.

Speaker 6 (07:00):
And there's a comment here from Saffracast, the CEO, saying
that fiscal year twenty twenty five was a very good year,
but we believe twenty twenty six will be even better
as our revenue growth rates will be dramatically higher. Again,
dramatically higher. They're looking at total cloud growth rate applications
plus infrastructure increasing from twenty four percent in fiscal year
twenty five to over forty percent the next year.

Speaker 1 (07:20):
All right, of course, so we're gonna have to wait
up for the earning's conference call to get a better
read on the guidance going forward, as that of course,
is not included fully into the release.

Speaker 2 (07:30):
This stock mover's report from Bloomberg Radio. Check back with
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