J&J Tumbles After Ruling, PVH Climbs, Roblox Partners with Google

On this episode of Stock Movers:

- Johnson & Johnson (JNJ) shares fell the most in five years after the company’s plan to settle thousands of talc-related lawsuits through bankruptcy was shot down in court. The ruling means J&J will have to fight roughly 60,000 claims brought by women who say the company’s hallmark baby powder caused ovarian cancer and other, similar gynecological diseases in courts across the country. It may also have to set aside far more than the $9 billion it had earmarked for victims. J&J’s shares dropped as much as 5.6% in New York today, marking the biggest intraday loss since March 2020.

-PVH Corp (PVH) shares climbed in their biggest intraday advance in two years after the owner of Calvin Klein and Tommy Hilfiger brands gave a guidance for 2026 adjusted earnings that beat the average analyst estimate. The outlook, which excludes currency fluctuations, surpasses the average analyst estimate of a 0.5% revenue decline for the period from the previous year. It’s more cautious than the view offered by Chief Executive Officer Stefan Larsson in December, when he projected “modest growth” for 2025. Revenue decreased 5% on a constant currency basis in 2024, the company said in a statement.

- Roblox (RBLX) shares are up as the video-game company announced it will roll out Rewarded Video ads for programmatic buying through Google. Rewarded video ads allow users to earn in-game perks for watching up to 30-seconds of full-screen video ads, according to a statement from Roblox on Tuesday. The gaming platform, which has 85 million daily users, has been increasing its advertising capability over the last few years, creating lucrative partnerships with the likes of Ralph Lauren, Chipotle Mexican Grill and other brands.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:08):
The Stock Movers podcast, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg data.

Speaker 1 (00:17):
Well, let's take a look at some stocks that are
on the move today with us is at Bloomberg News
cross ass at reporter Emily Graffeo. She joins us here
in the Bloomberg BusinessWeek Studio. You don't have Newsmax on
this list.

Speaker 3 (00:29):
I know, we talked about it yesterday. Okay, is there
much more to say on Newsmax? I mean, well, it's
having a very good day today, more.

Speaker 1 (00:37):
Than two thousand percent in two days. It cemented its
meme stock status at least as of now. Right, I
can see what happens over the next.

Speaker 4 (00:45):
Few years on me trade it for two days.

Speaker 5 (00:46):
I didn't have any fundamental developments to share on your
list in your head, right, sure, I.

Speaker 3 (00:52):
Mean it's definitely something that's caught my eye.

Speaker 6 (00:53):
Okay, I think or May sixteenth, so maybe, okay, a
little bit more.

Speaker 4 (00:58):
I'm not sure if that's confirmed, but it's.

Speaker 3 (01:01):
Then we can talk about that on May sixty.

Speaker 4 (01:03):
Deal deal deal. Let's talk about stocks on the move today. Also,
other stocks on the move Johnson and Johnson's one that
you're watching.

Speaker 5 (01:10):
So these shares are following the most in five years.
And actually the last time the stock was down this much,
it was March twenty third, twenty twenty, which was the
pandemic bottom for S and P five hundred. That was
right when the S and P hit its bottom, and
then it moved uphigher than that. So I don't know
what that means for J and J. But the news
is coming as the company's plan to settle thousands of

(01:33):
talk related lawsuits through bankruptcy was shot down in court,
which means that they're not going to have to fight
roughly sixty thousand claims brought by people who say that
the company's baby power caused ovarian cancer and other diseases.
BI says that now that number of claims could balloon
to more than ninety thousand. So J and J had

(01:53):
set aside about nine billion that it had earmarked to
the victims. Now Blueberg Intelligence estimates the cost could go
up to about eleven billion.

Speaker 3 (02:02):
So it's weighing on the stock. It's something that's weighed
on the company for years now, and it's not ending
anytime soon.

Speaker 6 (02:09):
I mean, it's been kind of interesting to track it, right,
like how they wanted to do this, the structure of
doing it was kind of interesting.

Speaker 4 (02:16):
So ain't over right?

Speaker 5 (02:18):
Yes, And the stock it's about flat over the past
twelve months, so.

Speaker 3 (02:24):
I guess make of that what you will. But I'm
also gooking g at shares of pv H.

Speaker 1 (02:28):
We looked at these yesterday when the company reported really well,
I always have to. I always have to remind myself
what this company owns, the brands. I get a little confused.

Speaker 6 (02:36):
Do you just look in your closet, Well, the health incline, whatevers.

Speaker 4 (02:40):
I went. I went to the website, the Tommy Hill
figure the website.

Speaker 1 (02:44):
Believe that is not blocked. It's not blocked here at work?

Speaker 4 (02:48):
Well, he pulled up the website. Can I just tell you?
You can tell her?

Speaker 6 (02:51):
And so it's in the studio and you know, we
have a glass wall behind us.

Speaker 1 (02:55):
This is not appropriate to be looking on my work.

Speaker 6 (02:57):
There was a fair amount of skin that was on
the way.

Speaker 3 (03:00):
We're doing research. You're doing research for your job.

Speaker 1 (03:03):
It I didn't want people to walk by, you know,
she was going on anyway, pH.

Speaker 3 (03:07):
What's going on?

Speaker 5 (03:08):
I mean, they have perfume as well, right or actually
I don't know if that's under the parent company.

Speaker 3 (03:12):
I don't know. Well, I'm not sure the brand is.

Speaker 4 (03:14):
But the stock is souring.

Speaker 5 (03:16):
The stock is soaring, biggest jump in about two years.
They gave guidance for twenty twenty six that beat estimates.
They also expect sales growth to be flat or slightly
positive this year, which doesn't sound like that great, but
it outpaced expectations and you look at kind of the
macro signals that we can get out of what the

(03:38):
parent company of Calvin Klein and Tommy Hillfiger said. Sales
were good over the holidays, started the year at a
solid pace, but it's a tougher consumer backdrop in North
America and a continued tough backdrop in China. Consumers are
facing inflatory pressure and reporting lower confidence in their feelings
about the future. This reminds me a lot about all

(03:59):
the soft data that we're getting that shows that sentiment
is down. But then you look at the stock price
and company fundamentals, and I was.

Speaker 6 (04:06):
Like, you know what the expectations were to write like
and if you just come in even if it's like
kind of negative or toned down if you either come
in as expected or even a little bit better.

Speaker 4 (04:16):
Yeah, folks are like that.

Speaker 5 (04:18):
Seems like that is exactly what happened with PVH. So yeah,
that's stock much higher.

Speaker 1 (04:22):
Well, sometimes I walk by Carol's task and she's just
playing Roadblocks. Oh that the whole day now, thinking to myself, Carol,
this is not a good use of your work day.

Speaker 5 (04:30):
Right, this stock is up about four percent. Now, I
don't play. Do your children? No?

Speaker 1 (04:35):
We try to keep them away from this world.

Speaker 3 (04:38):
Okay, well see how long.

Speaker 1 (04:39):
We can succeed doing that. Minecraft is on our son's radar.
But yeah, he's not getting anywhere.

Speaker 3 (04:45):
Kind of similar. Right, I've never I haven't played.

Speaker 1 (04:48):
Yeah, I will be honest. I get them both mixed
up with one another.

Speaker 5 (04:50):
But Roadblocks it's an online gameame platform.

Speaker 3 (04:54):
Yeah, there's eighty five million daily users.

Speaker 6 (04:56):
People ask if you Google's role Blocks safe for your child.

Speaker 1 (05:00):
All I will say is you should read Olivia Carvill's
pieces if you have questions about that.

Speaker 4 (05:05):
Absolutely, what's the stock do it?

Speaker 5 (05:06):
Yeah, she's done great reporting on this company. The stock
right now up about five percent. They announced a partnership
with Google, so now users will be able to earn
in game perks in the game in exchange for watching
an advertisement. So you watch like thirty seconds of a
video and then you get.

Speaker 3 (05:24):
The roadblocks perks.

Speaker 6 (05:26):
Maybe to I can't say anymore because I'm going to
get in trouble.

Speaker 3 (05:30):
It seems so like post capitalists and you're playing a
game and then you're watching a video.

Speaker 1 (05:36):
And talk to Carol.

Speaker 4 (05:37):
She doesn't perks for it all the time. Such a
big gamer.

Speaker 2 (05:44):
The Stock Movers podcast from Bloomberg Radio. Check back with
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Speaker 1 (06:08):
Mm hmm