Oracle Rally Continues; Klarna Dips; Amazon Higher

On this episode of Stock Movers:
- Oracle (ORCL) is higher in the premarket. It continues to surge after the company gave an aggressive outlook for its cloud business, cementing its place in the race to support demand for artificial intelligence computing. The company signed deals with major customers including OpenAI, Nvidia, and ByteDance's TikTok, helping boost remaining performance obligations to $455 billion at the end of the fiscal first quarter.
- Klarna (KLAR) is lower this morning after yesterday's huge IPO. Klarna's listing gave the company a market value of about $15.1 billion after the buy-now, pay-later company and some of its backers sold shares for $40 per share.
- Opendoor (OPEN) is rallying after the company said co-founders Keith Rabois and Eric Wu will rejoin the board and named Shopify’s Kaz Nejatian as chief executive officer.
- Amazon (AMZN) is higher after it was named a top pick at Morgan Stanley, which sees the company’s expansion in groceries “unlocking durably faster growth.” The grocery expansion is “a way for AMZN to drive higher utilization and purchase volume on its already leading logistics network and fleet,” and over the longer term, “capturing more consumer data in this critical grocery category (purchase behaviors, brand affinities, etc) is going to be important to AMZN’s efforts to create next generation agentic grocery offerings.”

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Episode Transcript

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

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

Speaker 3 (00:16):
Let's take a look at some stocks on the move today.
I'm Nathan Hager, joined by Bloomberg's Valerie Titel. This day
after the huge move for Oracle shares after earnings, and
looks like Oracles still doing okay this morning. Valerie, Good morning.

Speaker 4 (00:32):
Yeah, good morning, Nathan. You're right.

Speaker 1 (00:34):
Oracle, after surging thirty six percent yesterday, is up another
one point six percent.

Speaker 4 (00:39):
In the pre market.

Speaker 1 (00:40):
The rally yesterday catapulted the co founder Larry Ellison briefly
to the position of the world's richest man and actually
had the biggest one day gain and well for a
single person from the Bloomberg's Billionaire Index. But recently we
have heard from the Wall Street Journal. They reported that
one of Oracle's new splashy customer contracts was a three
one hundred billion cloud computing deal with open Ai, agreeing

(01:03):
to provide power for five years, one of the biggest
ever contracts signed in the cloud industry, four and a
half gigawatts equivalent to two times the power generated from
the Hoover dam.

Speaker 4 (01:15):
That is what Oracle is going to.

Speaker 1 (01:16):
Be delivering over the next five years to open AI.

Speaker 4 (01:19):
But this Oracle rally isn't stopping. It's up another one
point six percent today.

Speaker 3 (01:23):
And another stock that did pretty okay after its IPO, Klarna.

Speaker 4 (01:28):
How's that stock doing this morning? I did pretty okay.

Speaker 1 (01:31):
Yeah, at some point yesterday it was up forty three
percent on the day. But the Klarna shares are down
so far in pre market trade, down nearly two and
a half percent, trading at forty four dollars and seventy
cents a share, so still decently above the IPO price
of forty dollars.

Speaker 4 (01:46):
But this buy now, pay later company was one of.

Speaker 1 (01:48):
The biggest IPOs of the year, raised one point four
billion dollars at evaluation of seventeen billion dollars. It was
double digit oversubscribed and nearly half of the perspectives were
left empty handed without an allocation. Perhaps the reason why
we saw sets of run up in the share price
yesterday as investors clamored on to get some exposure to Klarna.

Speaker 4 (02:09):
Does the IPO market have more room to run?

Speaker 1 (02:11):
That's the question that this IPO is begging, but Clarna
shares in the red so far this morning, giving back
some of its gains of yesterday, down two and a
half percent.

Speaker 3 (02:19):
We also saw another company soor after some changes at
the top. Let's talk about open Door.

Speaker 1 (02:26):
Open Door Technologies up over thirty one percent in pre
market trade. This is the stock that kicked off the
retail frenzy a few months ago. Perhaps it's on the
verge of doing it again here, Nathan. It's up because
co founders are going to be returning to the board,
and the company is also pinching Shopify's CEO. But this
stock that was well known as a mean stock. What

(02:48):
open Door does is a platform for you to buy
and sell real estate, so it does seem like to
be There is still a lot of attention attention on
this meme stock.

Speaker 3 (02:55):
And there's new attention on Amazon this morning, but not
because of the e commerce business or the cloud business.
What's going on with Amazon?

Speaker 4 (03:05):
Yeah, this one I thought it was funny.

Speaker 1 (03:06):
Amazon up eight tens of one percent, outperforming the Nasdaq
so far this morning. It named a top pick at
Morgan Stanley, but not for its cloud business. It's for
its grocery store push as it seeks to compete with
grocery store delivery services offered from the likes of Walmart.
It comes after just a few weeks ago the mag
seven company said it would offer same day groceries in

(03:26):
two three hundred cities across the US by the end
of the year.

Speaker 4 (03:30):
So it's upgrade by Morgan Stanley.

Speaker 1 (03:32):
Is seeing this mag seven stock outperform this morning, with
Amazon up eight tens of one percent.

Speaker 2 (03:37):
The Stock Movers report from Bloomberg Radio. Check back with
us throughout the day for the latest roundup of companies
making news on Wall Street and for the latest market
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