Nvidia Falls, Hertz Jumps, United Airlines Higher on Dual Forecasts

On this episode of Stock Movers:
- Nvidia (NVDA) shares fall after President Donald Trump’s administration banned the chip giant from selling its H20 chip in China. The firm warns it will report about $5.5 billion in writedowns during the current quarter, tied to inventory and commitments for the chip.
- Hertz (HTZ) shares soar after Pershing Square Capital Management revealed a large stake in the beleaguered car rental company. Bill Ackman’s investment firm bought 12.7 million shares valued at about $46.5 million at the time of the purchase, according to a filing Wednesday, making it one of Hertz’s largest shareholders.
- United Airlines (UAL) shares are higher after it provided two possible earnings scenarios, expecting an adjusted profit of $11.50 to $13.50 a share if the current environment remains stable, and $7 a share if the US economy enters a recession.

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Episode Transcript

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

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

Speaker 3 (00:17):
Let's take a look at some stocks on the move today.
We're joined by Bloomberg's Bailly Lipschaltz.

Speaker 1 (00:21):
Billy, what are you looking at?

Speaker 4 (00:22):
Yeah? I know you guys are going to spend some
time with Mandeep later on talking about it. But in
Vidia biggest driver to the downside in the s and
P five one hundred, down more than six percent. This
comes after the company warned it will report about five
and a half billion dollars in write downs for the
current quarter, all because their H twenty chips will require
a license to be exported to China for the indefinite future,
another headache coming from this ongoing trade war.

Speaker 1 (00:46):
And again, this is a big move for a big.

Speaker 4 (00:48):
Company, So you don't normally see in Nvidia down six percent,
two and a half trillion dollar company, So that's providing
quite a bit of selling pressure across major averages, definitely
weighing on Peers were seeing information technology the worst performing
sector in the SMB five hundred.

Speaker 1 (01:00):
Right now, Yeah, and socks Indecks.

Speaker 4 (01:02):
I know, ASML is having its own issues, but the
socks indecks right now down more than three and a
half percent, So a sharp sell off four tech names
and kind of a flight to risk.

Speaker 1 (01:10):
I know JT mentioned it, but Abbot Labs.

Speaker 4 (01:13):
Chevron, United Health Investors seeking safety just given all the
volatility that continues to play out, that's.

Speaker 1 (01:19):
What's going wrong with HURTS.

Speaker 3 (01:20):
I'm a gold card member, so I mean I walk
up there the cars, just kind of see the name
up on the thing and just walk to the car.

Speaker 4 (01:27):
We were talking on TV about it, So did you
ever use did you ever rent a Tesla from Hertz?

Speaker 3 (01:32):
No?

Speaker 4 (01:33):
Okay, well that's been their big headache. Okay, the socks
up right now fifteen percent. This comes after Bill Ackman's
Perching Square disclosed that they bought twelve point seven million shares,
so they're now a top three shareholder stocks up fifteen percent,
but since it emerged from bankruptcy back in twenty twenty one,
down eighty four percent. So wow, buying a dip, buying
a plunge. Just want to call out that one of

(01:54):
the more recent high profile names that Actman took a
stake in Nike to announce that stake back in August,
down more than thirty percent from that point in time,
so an interestingly rough go for some of these names
associated with Bill Ackman will certainly be keeping an eye
and trying to figure out if it's an activist bet
or him buying the deal.

Speaker 3 (02:12):
They went long Tesla right in terms that they put
a lot of cars into their fleet, and then it
became clear that they weren't really working.

Speaker 1 (02:18):
Well it wasn't working.

Speaker 4 (02:20):
And then also it's as Matt Miller made the point
on TV, if you I don't know, you drive a
rental car, like a rental car and you ding the
rear view mirror, it's pretty expensive to replace one of those,
as opposed to you know, a Toyota where parts are
a bit cheaper.

Speaker 1 (02:34):
Exactly. You're also keeping an eye on United. What's going
on there? Yeah.

Speaker 4 (02:37):
United Airlines was up more than five and a half percent,
now up less than half percent, so giving back a
chunk of those games. JT had mentioned it interesting strategy.
They laid out two outlooks blaming uncertainty. Obviously, no one
really knows if we're going into a recession or if
we're already in one.

Speaker 1 (02:50):
So they laid out their.

Speaker 4 (02:51):
Base case guidance, which maintained and kind of drew applause
for analysts, and also a downside guidance in the event
that we do go into a recession and consumers feel
to pinch again. This does we did see kind of
their initial rally, partly because it stands opposite of what
Delta warned, so certainly seeing maybe a divide, but interesting
commentary coming from their CEO saying that the weakest region

(03:12):
they currently have is domestic, So keeping an eye on
us consumers and if we are going to see a
recession or see people kind of slowing their discretionary spending,
what that means for this kind of a company.

Speaker 2 (03:23):
The Stock Movers podcast from Bloomberg Radio. Check back with
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