Oracle Surges; Synopsis Signals Slowdown; 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.
- Coreweave (CRWV) and Nvidia (NVDA) are following the Oracle rally as they have relationships with the big tech giant.
- 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.

See omnystudio.com/listener for privacy information.

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 1 (00:16):
Let's take a look at some stocks on the move today.
I'm Nathan Hager, joined by Bloomberg's Valerie Titel and talk
about stocks on the move this morning after earnings. My goodness,
or oclling.

Speaker 3 (00:30):
I mean Oracle, it is stunning Wall Street up thirty
one percent in pre market trade on their earnings call yesterday.
It left analysts speechless when it came to their guidance
for their cloud revenue, a measure of future contract revenue
for their cloud business, surged by three hundred and fifty
nine percent. The company is now saying that they have

(00:52):
essentially four times the backlog that Google does in the
cloud space, which is really astounding given Oracle is only
two percent of the cloud of the cloud market share
and Google has around twenty percent, So you put those
on par with each other, it's really some shocking figures.
The company signed four multi billion dollar contracts with three

(01:13):
different customers. The CEO said they had an astonishing quarter,
and maybe most interestingly, it puts the co founder Larry
Ellison on the map to nearly overtake Elon Musk as
the world's richest man.

Speaker 1 (01:26):
Yeah, we're gonna have a lot of Bloomberg terminal customers
checking rich Go this morning following those results. And it
looks like Oracle's earnings have a tail for some other
big tech names to follow.

Speaker 3 (01:37):
Yeah, especially for ones in their supply chain. We're seeing
shares of core Weave up seven and a half percent.
Oracles a major cloud infrastructure partner for Corewave. That's that
tech stock that went public earlier this year. Also Navidia
benefiting from Oracle as well, up nearly two and a
half percent in pre market trade. Oracle does buy a
lot of Navidia products, so it does seem to be

(01:58):
lifting a lot of those in it supply chain. This
massive blowout earnings guidance coming from Oracle on their cloud business.

Speaker 1 (02:05):
Can we say Synopsis has the opposite of a massive
blowout in the tech space.

Speaker 3 (02:10):
Yeah, so this is a little bit of a different
picture here Synopsis. The shares are down twenty one percent.
Synopsis provides software used to design and test semiconductors. They
gave a weak revenue guidance when it came to design
IP and a really weak outlook that they said was
due to US export restrictions on China, so blaming the

(02:31):
trade war in between the US and China for their
hampered sales. They also cited an issue with a major
foundry customer as well, so a bit of a niche
some niche instances hurting Synopsis sales, but China being the
weak drag on their revenue and the shares are down
twenty one percent pre market.

Speaker 1 (02:48):
Well, maybe the other big earning story of the morning
is outside the tech space outside the US as well,
with Nova Nordisk reporting their results.

Speaker 3 (02:58):
Yeah, Novo Nordisk, the share are up one point one
percent at least when it comes to the US ad RS.
They planned to cut eleven percent of its workforce by
the end of the year, which amounts to around nine
thousand jobs globally. They also cut their profit forecasts for
the third time this year. Now Novo Nordisk is the
maker of Ozembic and we Go Viv. It's really fighting

(03:20):
to make up lost ground to rival Eli Lilly in
the weight loss market, and this is one of the
first bold actions taken by the new CEO who's been
at the Helm for just a month, but these prices
or what they're saying that they're reducing their workforce is
really something we've never seen Novo Nordists do has had
some kind of breakneck speed trying to keep up with
the weight loss market. But investors are seeming to be

(03:42):
cheering this move by the new CEO to cut its staff,
and the stock is up one and a quarter percent.

Speaker 2 (03:48):
This stock mover's 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
moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Bloomberg dot com, and on Applecarplay and Android Auto with
the Bloomberg Business app.