Oracle Pop; Synopsis Slides; Novo Job Cuts

On this episode of Stock Movers:
- Oracle (ORCL) surged to a record after the company gave an aggressive outlook for its cloud business, stunning Wall Street and galvanizing hopes that the post-ChatGPT global AI infrastructure build-out is accelerating. Oracle's cloud infrastructure revenue increased 55% to $3.3 billion, with the company signing four multibillion-dollar contracts with three different customers in the quarter and expecting to sign up several additional customers in the coming months.
- Synopsis (SNPS) shares are sinking after warning that US export restrictions are contributing to a slowdown in China. Its price target was also cut at Stifel, Wells Fargo, and KeyBanc. The electronic design automation software company reported third-quarter results that featured a weak read on Design IP revenue. It also gave an earnings outlook that was weaker than expected.
- Novo Nordisk (NVO) shares are up after it announced it will slash 9,000 jobs globally and cut its profit forecast for the third time this year as it fights to recover ground lost to its rival Eli Lilly & Co. in the obesity drug market.

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Episode Transcript

Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,
your roundup of companies making moves in the stock market
harnessing the power of Bloomberg Data.

Speaker 2 (00:16):
Let's take a look at some stocks on the move today.
I'm Tom Keene with David Gura and Bloomberg's John Tucker.

Speaker 3 (00:22):
All Right, you got to start with Oracle. You know,
we knew this as the database software company, but they're
finding more and more successive in the cloud with you know,
you married that up with AI. Oracle shares storage to
a record, the company delivering an aggressive outlook for the
cloud business. It kind of took a lot of people

(00:44):
on Wall Street, took them up back, stunned them. In fact,
this is galvanizing hopes that the post chat GPT global
AI infrastructure build is accelerating. The company on track to
add about two hundred billion dollars to its market value.
You Oracle forecasts among the highlights the need for global
AI developers to keep accelerating their investments. Open Ai one

(01:09):
of its customers. They alone estimate it's going to require
trillions with a t of dollars over time to spend
on the infrastructure required to develop and run it services
Oracle of course, emerging as maybe a key provider of
such computing capacity. They're competing against the cloud leaders like Amazon,
Microsoft and Google.

Speaker 2 (01:30):
Let's be clearer, this is not up five percent or
up ten percent, John, this is up am I right
up thirty eight percent is the market indication.

Speaker 3 (01:40):
At least it was in the pre market. So that
would let me see carry the three two that would
add two hundred billion dollars to its market capitalization.

Speaker 4 (01:52):
But the question is can it continue? Can it continue?
Will they be able to do it well?

Speaker 3 (01:56):
The customers say, trillions of dollars of spend they need.

Speaker 2 (02:00):
How often do we have a repricing of a two
point eight trillion dollar market cap? I've never seen this?

Speaker 3 (02:10):
And then it means that Larry is getting richer and
Richard almost catching up to Elon Mosqez, the world's rich.

Speaker 2 (02:19):
Honest, you can say, I've never seen this. Next, what
do you got?

Speaker 3 (02:22):
Let's do the weight loss drugs. Novo Nordisk cutting nine
thousand jobs globally, slashing the profit forecast for the third
time this year. They're trying to make up for lost
ground because Eli Lilly, I guess is so much more
efficient in the obesity drug market. So the maker of
ozempic and we go be saying it's going to save

(02:43):
one point three billion dollars by the end of next year,
and they're going to plow the money back into new
drug development. They were the most valuable company in Europe
because of the surgeon demand for weight loss treatments, but
company pioneering the market for weight loss drugs like ozempic
and we govi, its fortunes kind of started to shift

(03:05):
last year when an even stronger experimental shot fell short
of the weight loss promises.

Speaker 2 (03:13):
John Tucker and I turned to David Girl, Have you
done this?

Speaker 4 (03:16):
David, have you done that? If I've done a GLP one, No,
I have not. I have non. Now I feel sad
that you've brought that up all of the working out there.

Speaker 3 (03:24):
Next ticker symbol SNPs synopsis the electronic design automation firm
badly missing the street targets for its fiscal third quarter,
and they also offered what I'm going to call some
mixed guidance. They're based in Sunnyvale, California, earning an adjusted
three point thirty nine A share on sales of one

(03:47):
and three quarter billion dollars in the quarter just ended.
They were that export restrictions are contributing to a slowdown
in China, which of course is the largest market for semiconductors.
The CEOs is a a push to develop its own
intellectual property is not achieving the desired results for the company.

Speaker 1 (04:09):
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