Ubisoft Down More Than 20%,, Siemens Down, JD Sports Up

On this episode of Stock Movers:
- Ubisoft shares sink as much as 23% after the video-game maker gave disappointing guidance that called for negative free cash flow, with a return to profitability seen as at least another year away.
- Siemens's shares fell after orders for its electrification products declined from elevated levels, signaling a slowdown in demand driven by the boom in data centers.
- Terminal users are searching for news about JD Sports after it was reported Dick’s Sporting Goods is in advanced talks to buy Foot Locker, whose stock had dropped 41% this year amid the back-and-forth over tariffs.

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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 look at some of the stocks on the move
today here in Europe. I'm Caroline Hepkar with Tom McKenzie.
How were joined by Bloomberg's Equities reporter Joe Eastern. Good morning, Ubisoft.
Are they at risk of a game over wipeout?

Speaker 1 (00:30):
I think it might be game over, Yeah, game game
game time running out, So you Ubisoft? Now this on
absolutely cratering here in Europe today, down nineteen percent. Looks
like it is going into a trading whole dute volatility currently,
the company warning of flat sales for the new fiscal
year and delaying some of its latest games. This is

(00:50):
a company that's behind Assassin's Creed is their big title,
and they're saying that they're not going to have any
high end games which are known as Triple A games
coming out in the year ahead at all, and therefore
that's going to hit their profit unsurprisingly also their cash
flow as well, and therefore that stock really slammed us
down around sixty percent over the past a year. That

(01:12):
stock's really a huge drop. But I think some of
us we're waiting for the Grand Theft Auto game that's
going to be coming out next Jim, this is the
latest one. We've been waiting around a decade for that game.
But it's weird, clearly, very much, Yeah, very much. Me
and my brother, we've been there waiting for it for
a long time. But you've be soft leading the game.

Speaker 4 (01:33):
Stock clever, okay to a very different space. The industrial
giant German industrial rant Semens with that touch point of course,
across the global economy, trade tensions, China earnings out today,
anything electrifying in those numbers show.

Speaker 1 (01:46):
Well, letting off a bit of a spark, maybe, I no,
so Semen's actually disappointing. So this stock down three percent
at the moment. The numbers actually looked okay in terms
of the electrification business doing pretty well. So this is
the electricity supply to data centers and that big boom
that we've seen in a from that. And also they're
smart infrastructure units, so a lot of that is in

(02:09):
automated warehouse and other kind of automation stuff. Looking pretty solid.
But that stock has been trading at a record High recently,
so despite them reporting a twenty nine percent jump in
new business profit, the stock actually down three percent at
the moment, trimming the year to date gain on that
one to around fifteen percent. So it's kind of story

(02:30):
where the stock's done well and people taking a few profits.

Speaker 3 (02:33):
Okay to trainers, talk of a retail deal in the
US is actually helping the UK High Street here, I
don't quite get this why this is about Footlocker.

Speaker 1 (02:45):
Yes, so this is big news in terms of sports
retail over in US. Dick Sporting Goods in advanced talks
to buy Footlocker. That is a deal that could be
worth a couple of billion dollars, so it is kind
of in the MidCap range. However, that does have a
across for JD Sports because JD Sports has spent a
lot of time and a lot of money repositioning in

(03:06):
the US doing some deals over there. It's the biggest
partner of Nike over in the US. Nike in terms
of the big the trainer maker. So therefore we're seeing
JD Sports gaining today this kind of speculation. I guess
that if Footlockers being bought out, could JD be the
next one JD up around three and a half percent
of the moment. Doesn't sound like a big move, but

(03:27):
bear in mind most stocks are actually lower today's that
is a significant outformer. How the opener trading It was
the best performing stock on the Stockshure of six hundred,
so the footlocker takeover feeding through here into London.

Speaker 2 (03:40):
The Stock Movers report from Bloomberg Radio. Check back with
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