Closing Bell: Oracle Hits Record, Boeing Slumps on Plane Crash, GameStop Pivots

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, Carol Massar and Tim Stenovec.

- Oracle (ORCL) shares soared to a record high after the software maker projected a 70% gain in cloud infrastructure sales this fiscal year, giving a bullish outlook for the closely watched business. The company, long known for its database software, has been gaining traction in its effort to become a major player in the business of cloud computing — renting out computing power and storage — by targeting clients focused on artificial intelligence work. Earlier this year, it announced a joint venture dubbed Stargate to provide OpenAI with massive sums of computing power.

- Boeing (BA) as investors digested the news that of the Boeing plane that crashed in India. The Air India flight was bound for London, and the crash killed all but one of the 242 people on board the Boeing Dreamliner, making it the deadliest aviation accident in more than a decade. The airline confirmed that 241 of those on the London-bound flight had died. The sole survivor is being treated in a hospital, the carrier said. Officials earlier said that emergency responders had recovered more than 200 bodies at the crash site, though they didn’t immediately say how many were passengers, crew or area residents. They said the toll could rise as emergency workers comb through the wreckage.

- GameStop (GME) the largest standalone video-game retailer in the US, will focus on growing its trading card business, Chief Executive Officer Ryan Cohen said at the company’s annual shareholder meeting Thursday. The business of Pokémon and sports trading cards “is in line with our heritage,” Cohen said. “It fits our trade-in model, it appeals to our core customer base and it’s deeply embedded in physical retail.” GameStop investors have seen some dramatic share price swings since Cohen, the founder of online pet product retailer Chewy Inc., became chairman in 2021. The shares dropped more than 20% on Thursday after the company announced a $1.75 billion bond sale. The proceeds will be used for general corporate purposes, including investments and potential acquisitions, 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 movers report
the company's making moves at the close of US trading
with Carol Masser, Tim Stenebeck, Romain Bostik, and Scarlet Fool.

Speaker 3 (00:22):
All right, so let's get to some of the individual gainers.

Speaker 4 (00:24):
Hey, Oracle, that is your number one gainer in the
S and P five hundred, finishing the day with a
gain of more than thirteen percent. Company reported fourth quarter
results that beat expectations, and they projected a seventy percent
gain in cloud infrastructure sales this fiscal year.

Speaker 3 (00:39):
So really giving a bullish outlook. Okay, yep, all good,
All right, good.

Speaker 4 (00:43):
No, that's okay, giving a bullish outlook for the closely
watched business. Stock by the way, is up more than
twenty percent year to date, so definitely an outperformer.

Speaker 3 (00:50):
Data Dog. I don't know. For some reason, when I
say data dog, I think of you, Romaine. Don't you
like this name?

Speaker 4 (00:57):
Wow? I don't know what he's doing with that.

Speaker 3 (00:59):
Okay, let's get to dog. You always talk about data Dog. No,
I didn't mean it.

Speaker 4 (01:03):
Do not read anything into that I read? I know,
I know, No, No, no, sometimes he has a dog.

Speaker 3 (01:08):
Cigar has a dog. Yeah, okay, wonderful.

Speaker 4 (01:11):
So maybe that's all data on Carol number one gator
than NASDAQ one hundred. All right, moving along, moving along,
up about three and a half percent in today's session.
Wolf Research upgraded the software company to outperform from peer perform.
They say it's one of the best position names and
their coverage to benefit from AI adoption from both an
adjacent more workloads to be observed and direct new AI

(01:34):
offerings point of view.

Speaker 3 (01:35):
According to the analyst Alex Zuken.

Speaker 4 (01:38):
Price target at one point fifty a share and so
the stock closed at one twenty two and change, so
so upside certainly there According to Wolf Research, Cardinal Health
four and a half percent. This was a top gainer
in the S and P five hundred shares hit a
record here today after the healthcare distributor boosted adjusted earnings
per share guidance for the full year and gave long

(01:58):
term growth targets that impressed street stocks up about thirty
five percent yere to date.

Speaker 3 (02:02):
I know it was a record intraday, So yeah, okay.

Speaker 1 (02:05):
Can I just add a couple of honorable mentions?

Speaker 4 (02:07):
No, No, I have one more Wow, Shine Financial. I
was assuming you were going to get in there, so
I asked Faith Finley rather, if I could add this
into I know that was that was going back Finley,
if I could add a fourth name.

Speaker 3 (02:22):
Shine Financial.

Speaker 4 (02:22):
Guys up as much as sixty six percent in IPO today,
finishing the day with a thirty seven percent gain.

Speaker 3 (02:29):
We're talking about.

Speaker 4 (02:30):
An IPO that went pretty well, priced above a marketed range.

Speaker 3 (02:34):
So yeah, doing pretty well. What do you what are
you going to add?

Speaker 1 (02:37):
I'll add another honorable men, that was my honorable mention.
By the way, I'll just add MBA Materials having a
great day. I'll fourteen percent on the back of that
news about a potential loosening of rare earth rules here
in the US.

Speaker 5 (02:47):
Jim, all right, let's do you decliners. I got my
eyes squarely focused on the tragedy that happened in India
earlier today, watching chairs of Boeing down four point eight
percent on the day, fell as much as close to
six percent earlier in the session. Seven eighty seven dreamliner
traveling from India to London's Gatwick Airport crash just shortly
after taking off. This was the first ever complete loss

(03:08):
of a whole of a seven eighty seven. It's a
plane that's more than a decade old. It's got advanced
lightweight composite materials that improve fuel efficiency. There's about eleven
hundred and fifty of these jets in service. Just an
absolute tragedy. Twenty twenty five is right now one of
the deadliest years in the past decade when it comes
to civil aviation.

Speaker 1 (03:29):
Also EFFECTUTEMP are actually waiting for a press conference from
the US Transportation Secretary Sean Duffy on them.

Speaker 5 (03:36):
Yeah, we're going to dip into that one on Radio
two when he does start to speak. Shares of General
Electric now doing business as GE Aerospace, the engine manufacturer,
down two point three percent. These were the engines that
powered that seven eighty seven Dreamline. They're the Gen X
one B engines. GE Aerospace actually is going to put
together a team. They're going to go to India to
analyze the cockpit data of that seven eighty seven Dreamliner.

(04:00):
This according to a report earlier from CNBC. Once again,
GE shares down two point three percent today. And finally,
how about some Pokemon trading cards, because that's what game
Stop is saying, is the future shareholders not loving it,
falling twenty two and a half percent. What's that not bigcoin,
not bitcoin? I guess this week it's growing trading card business.

(04:22):
Ryan Cohen said at the company's annual shareholder meeting. He's
the CEO that GameStop will focus on growing its trading
card business. The business of pokemon and sports trading cards
is in line with our heritage. It fits our trade
in model, it appears to our core customer base, and
it's deeply embedded in fistful retail.

Speaker 1 (04:37):
Adobe RNA is crossing the wire looks like a beaten raise.
Quarter revenue up about eleven percent here at five point
eight seven billion, the street was looking for five point
eight even adjusted EPs coming in at five dollars and
six cents a year, the street was looking for for
ninety eight. The company's guidance here for the third quarter,
this says revenue we'll be in a range a five
point eight eight to five point nine to three billion.

(04:58):
The low end of that range is the average of
street estimates. The company also says digital media revenue a
key metric now, of course, given everything going on with
AI four point three seven to four point four billion,
and once again the low end of that range is
effectively the average of analyst estimates. You see that reaction
in the shares up six percent.

Speaker 6 (05:16):
So the big question is really how the company really
frames what's going to happen once its price increase comes
into effect and announced it back in May, it takes effect,
or took effect June seventeen, it takes effect June seventeen.
I'm getting my dates all wrong, But that's a big
question mark because you've got upstarts like Figma and Canva
that can take away some of the casual users, but
the enterprise users will probably stick with Adobe. And how

(05:40):
much will we see that really jump in the revenue line?

Speaker 7 (05:44):
All right, guys, just quick chicking here on the bond
market as we're waiting for more earnings to come out
our h one of them is Adobe trickles out as.

Speaker 3 (05:50):
Well buying across the curve.

Speaker 7 (05:52):
What was really interesting here is that we are off
the lows of the session when it comes to the
two year, despite those jobless claims and continuing claims as
well as softer PPI. Also on the back end, we
had that thirty year auction went all right, We got
through the auctions this week. Everything worked out.

Speaker 4 (06:07):
Okay, Yeah, so interesting to see. Hey Rih, just starting
to cross the Bloomberg terminal Companies saying it still sees
fiscally your revenue of up ten percent to up thirteen percent.
Keep in mind as we wait for some more numbers
to come out, this one's been beaten up big time
here to dates, down about fifty five percent with almost
twenty one percent of the float shortage. So any our performance,

(06:27):
we could see some shortcovering, but we'll seek us. Right now,
we are seeing the stock bouncing around, just up about
four tensive a percent.

Speaker 2 (06:36):
The Stock Movers report from Bloomberg Radio. Check back with
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