Oracle Rises, Synopsys Drops, Fifth Third Gains After Saying Loan Fraud Was 'One-Off' Issue

On this episode of Stock Movers:
- Oracle (ORCL) shares rise after the company gave a bullish outlook for its cloud business. After FY2026, it sees Cloud Infrastructure revenue in subsequent four years of $32b, $73b, $114b and $114b.
- Synopsys (SNPS) shares drop after the company gave a weak reading on revenue from design IP and a weaker-than-expected earnings outlook. The company also warned that US export restrictions are contributing to a slowdown in China
- Fifth Third (FITB) shares gain after the company said it was the victim of fraud on a loan with a $200 million balance, but believes the situation was an isolated incident in the company’s warehouse-lending business.

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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.
Let's take a look at some of these stocks on
the move today.

Speaker 1 (00:18):
I'm Scarlet Food with Alexis Christopher's and we're joined right
now by Bloomberg's Christina Quino.

Speaker 2 (00:23):
And we got to start with Oracle.

Speaker 1 (00:24):
Yeah, we got to start with Oracle because that is
a hot stock today ticker oh RCL. Those shares are
nearly forty percent now, which is astounding, and that is
because it did give a bullish outlook for its cloud business.
So it's saying that after a fiscal twenty twenty six
its cloud infrastructure revenue will increase subsequently over the next

(00:46):
four year So we're looking at thirty two billion after
fiscal twenty twenty six all the way up to one
hundred and fourteen billion in just four years after that,
So very very bullish. And the company also saying that
they signed a bunch of data side deals over to summer,
including one with open Ai that has increased their remaining
performance obligations, which is a key metric to four hundred

(01:07):
and fifty five billion dollars, so half a trillion exactly,
and Bloomberg Intelligence citing that as a reason for the
bullish outlook on the stock, because they're pointing out that
that is almost four times the size of a similar
measure for Google, and so that really puts Oracle's cloud
growth rate on track to surpass Googles.

Speaker 2 (01:28):
Now on the other side of that coin, we've got
Synopsis right worst performer in the S ANDT five hundred,
missed earnings badly, and investors are punishing the stock absolutely.

Speaker 1 (01:37):
Alexis a Synopsis ticker SNP as doing really quite the
opposite of Oracle. Shares down about thirty three percent at
the moment, that's set for its biggest drop since two
thousand and four, and that is in fact because of
a week set of earnings, particularly a week reading on
its revenue from design IP, also a weaker and expected

(01:58):
earnings outlook, and of course the company warning that export
restrictions are contributing to a slowdown in China, which is
of course a key marker for the company, a key
market for anyone trying to be in the semiconductor space.
We've seen a swath of price target cuts, so they've
been cut to five fifty from six to sixty, and
need them five fifty to from six to fifty as well.

(02:18):
At Stifle and Bared analysts downgrading stock to neutral, saying
that there is a lack of forward visibility. And finally
you're looking at banks speaking visibility. We want to get
some visibility on these banks and they're exposure to certain losses. Absolutely,
so we're looking at Fifth Third at the moment. And
so yeah, that stock FIITV currently flat. It was gaining

(02:40):
a little bit more earlier. But as this comes, as
are just investors digesting the news with Fifth Banks saying
that it was the victim of a fraud on a
loan with a two hundred million dollar balance. No, they're
saying that they believe it was an isolated incident, so
you know, they didn't disclose the borrower. But Bloomer's own
boarding showed that Fifth Third is among the banks bracing

(03:03):
for potentially hundreds of millions dollars dollars of losses from
loans tied to subprime auto lender tri Color holdings. So
other banks are involved in that mess. Is basically JP Morgan, Barclay.
So these are no names that are involved in this,
so this seems to be quite a big loss because
two hundred million just for fifth third in terms of impairment,

(03:27):
so imagine how much it's going to be for the
other banks.

Speaker 2 (03:30):
The Stock Mover's report from Bloomberg Radio. Check back with
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making news on Wall Street and for the latest market
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