Target Falls, Palo Alto Networks Drops, Take-Two Interactive Lower on Stock Sale Plan

On this episode of Stock Movers:

- Target (TGT) shares fall after the company cut its sales forecast due to a sharp pullback in spending, tariffs, boycotts, and consumer confidence, with net sales expected to decline by a low single digit this year.

- Palo Alto Networks (PANW) shares drop after the infrastructure software company reported its fiscal third-quarter results and gave an outlook that failed to fully ease growth concerns. However, analysts remain broadly positive on its long-term potential.
 
- Take-Two Interactive (TTWO) shares are lower after the company announced plans to sell $1 billion of new stock to investors. The New York-based video-game maker plans to use the proceeds for general corporate purposes, including repayment of debt and future acquisitions, according to a statement Tuesday. The company declined to comment further on the sale.

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 3 (00:17):
Anita, what are the stocks you're looking at here?

Speaker 1 (00:20):
Let's look at Target. First. Target cut its sales forecast.
It's having a really rough day as a continuation of
pretty pretty strong start of the year. It's coming among
a sharp pullback in spending, and we're having a combination
of tariffs, falling, consumer confidence and really all those forces
we're worried about in the economy are hitting Target. At

(00:42):
the same time, the stock is actually down thirty percent
year to date, and what we're seeing today, the biggest
issue is that Wall Street analysts are worried that this
not may be the last guidance cut, that there may
be more coming. And it's interesting that obviously a lot
of companies in that space have felt the pressure, but
Target has been especially vulnerable because Appao, home goods, nons

(01:07):
non consumable items are really the majority of their sales,
like for example, Walmarts, they rely on groceries and that
you know, the company is doing much better here today,
but Target really very rough start of the year, and
you know, tariffs, consumer, all those forces are weighing on
sentiment there.

Speaker 4 (01:26):
Yeah, definitely, I was a big cat and Jack buyer
for my kid. They really good stuff cat Jack they
make like a kids close for Target. But you know
then she grows that changes, so they lost me there. Okay,
you're also taking a look at Palo Alto Networks.

Speaker 1 (01:42):
Yeah, let's talk about cyber security. Obviously that's been a
big story earlier this year. We saw so many cyber
attacks that he's been the space A lot of analysts
are watching and it's it's having another of day. Power
Auto Networks is down about seven percent. Results fail to
ease those growth here, and we've had obviously a lot
of issues without space. The infrastructure software company reported third

(02:06):
quarter resorts and gave outlook that failed. Two is all
those worries that said, we haven't seen any big downgrades.
We've seen Barclay's maintains overweight but lowers price tag. But
there isn't like too much negativism among analysts. JP Morgan says,

(02:27):
all though some metrics were a bit lighter than expected,
we continue to be power Out as one of the
best positioned vendors. So yeah, it wasn't that bad of
earnings report, but analysts are clearly worried and sentiment hasn't
been so good. The stock is flat here today, so
you know, maybe from here we will see some upside,

(02:51):
but it's definitely not bringing relief this earnings report.

Speaker 3 (02:57):
Take two, big follow on equity offering for take Now,
this is what happens back in the day when I
actually had a job on the street. Anytime a stock
moved ten or fifteen percent in a short period of time,
I had a little alert pop up for all my careers,
and I called this, if let's hit the market, let's
go put out a billion dollars worth of stock right here.
Your stock's moving in domentum is good and one out

(03:17):
of one hundred, maybe they say, okay, well here's take two.
I think said, okay.

Speaker 1 (03:21):
It's interesting when you were setting those alerts, I was
actually playing cron tif Auto five. That was many, many
years ago, and I was expecting to get the new
one and it's taken years. So that's one reason the
company has had a pretty volatile a few months. And
of course today the company announced plans to sell one

(03:42):
billion not today, sorry, yesterday they announced plan to sell
one billion of new stock to investors, and this is
going to be used for repayments of the futures acquisition.
But of course that's a name everyone's watching. It's all
connected with that gamer has been expected for years and
that keeps getting delayed. That said, the company is having

(04:05):
a strong start here to date when you zoom out
of the volativity of the last few months. So it's
an interesting name to watch. And yes, today definitely not
a good not a good reaction from what I heard.

Speaker 3 (04:17):
Again, they're issuing, they're going to do it. They intend
to do an underwritten public offering a billion dollars worth
of stock. It's a forty two billion dollar market cap company,
so it's not about a lot of dilution. But that's
still a good move for the company.

Speaker 4 (04:28):
How long did it take you to make those hundred
phone calls?

Speaker 3 (04:31):
What depends on the company. The learner would have to
go off and then I call the CFO, sake on,
I'll bid you right now on a billion dollars worth
of stock. Of five hundred million dollars worth of stock.
Usually said no, thanks, click you know, but everyone's like
I said, okay, I'd say two minutes.

Speaker 1 (04:44):
Okay, right, right.

Speaker 4 (04:45):
Back, amazing, all right, Janisa, thanks a lot to This
is a COVID joining us from Bloomberg.

Speaker 2 (04:50):
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