Waters Falls, Autodesk Rises, Palantir Record Highs

On this episode of Stock Movers:

- Waters Corp. (WAT) shares fell after the life sciences company said it will merge with Becton Dickinson’s Biosciences & Diagnostic Solutions in a Reverse Morris Trust transaction valued at about $17.5 billion.

- Autodesk (ADSK) shares rose after the company is no longer pursuing an acquisition of PTC Inc., people familiar with the matter said, which would have ranked as one of the year’s largest deals. The software provider has decided to shelve its work on a potential cash-and-stock deal for PTC, according to the people, who asked not to be identified discussing confidential information.

- Palantir (PLTR) shares hit record highs after President Trump is set to announce $70 billion in artificial intelligence and energy investments in Pennsylvania on Tuesday, the latest push from the White House to speed up development of the emerging technology. Trump is expected to share details of the new initiatives at an event outside Pittsburgh, according to an administration official, who spoke on the condition of anonymity to discuss the planning. There has also been 13F filings that show Gateway Investment Advisers boosted its stake in Palantir in the June 30 quarter.

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Episode Transcript

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

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

Speaker 3 (00:18):
I'm Tim Steinbeck, along with Normal Linda and for Carol Masser.
Let's take a look at some stocks on the move today.
We're joined right now by Christine Aquino. What do you
have on your radar?

Speaker 1 (00:29):
Well, Tim, let's take a look at Water. Shall we
biggest decliner on the SP five hundred chick Er WAT
shares down more than thirteen percent at the close. It's
the worst performer as mentioned on the S and B
five hundred, and that is because it's said that it
will merge with Bechten Dickinson's Bias Sciences and Diagnostic Solutions
in a reverse Morris trust transaction. That's a mouthful, but

(00:53):
that's essentially a tax optimization strategy that they often use
in M and A deals. Just to make it simple,
but yeah, that was ad a deal valued at about
seventeen and a half billion dollars. And you know, Water
is reporting a bunch of synergies, a bunch of cost
energies and revenue synergies because of this deal. But then
the word industry is that, you know, investors aren't necessarily

(01:15):
expected to view this positively in the short term just
because there's a bit of dilution. It will take time
to implement these strategies. But you know, Waters is saying
that they are expecting about three hundred and forty five
million dollars in annualized EPID DOT synergies by twenty thirty,
So let's save investors is willing to give it to
benefit a doubt.

Speaker 4 (01:34):
Eventually I had to talk about that transaction on the
closing bell. Such a mouthful. It's but, I mean, weirding,
so many words to put together.

Speaker 3 (01:42):
But I was looking at what.

Speaker 4 (01:43):
The analysts we're saying as well about the stock. Jeffreyes
was saying that they expect the stock to trade down
due to deal size and variables added to a clean
replacement cycle. Story shares are down one about eighteen percent
urity I.

Speaker 1 (01:58):
One but yeah and yeah, thirty percent of that just
today not positively received at first blash by investors.

Speaker 4 (02:05):
What else are you looking at?

Speaker 1 (02:06):
Looking at Autodesks and one of the app performers on
the S and P five hundred today, so take her
ads CA shares our out up a more than five percent,
and so this is kind of a reverse of what
we saw with Water. So this company saying that it
is no longer pursuing an acquisition of PTC. That is
according to people familiar with the matter, and so that

(02:27):
would have ranked as one of the year's largest deal
so far. But investors weren't necessarily happy about that. So
the shares have fallen more than ten percent since the
eighth of July. So that was the day before Bloombergeers
reported it was considering an acquisition of PTC, and so
now they're no longer doing that. Investors are taking that

(02:47):
as a positive sign. Potentially maybe they just didn't like
the sound of this deal.

Speaker 3 (02:52):
You know, this one was interesting from last week because
we saw both companies decline after the deal was announced.
Typically you don't see that when it comes to an acquisition,
and so there was something that investors didn't love about this.

Speaker 1 (03:03):
Yeah, exactly, and so now they're happy that is no
longer happening, evidently from the share move today.

Speaker 3 (03:08):
Okay, PLTR is the ticker Palenteer is what we're talking about.
This is a three hundred and fifty two billion dollar
market cap.

Speaker 2 (03:16):
Company.

Speaker 3 (03:17):
Absolutely unbelievable.

Speaker 1 (03:18):
Yeah, and it's been on a tier today at tim
so we did see shares hitting record highs. They're up
about five percent at the close. We've seen a few
positives for a Palenteer right The most recent one would
be President Donald Trump apparently is set to announce a
seventeen billion dollar investment in artificial intelligence and energy in
Pennsylvania on Tuesday, So that's tomorrow. That's going to be

(03:41):
part of the inaugural Pennsylvania Energy and Innovation Summit, and
executives from Palneer are expected to attend, so potentially we
could see some tie ins there, and then you know,
other things going on that are positive for Palenteer. We've
seen thirteen F filings, Gayway Investment Advisors boosting its stake
in Palenteer for the thirtieth June order, and the Webish

(04:01):
analyst Dan Ives last week raising to target to one
hundred and sixty dollars from one hundred and forty and
maintaining the outperform rating. So we've just seen a stock
really kind of steadily take higher over the past week.

Speaker 4 (04:12):
It's interesting, I mean for an investor that hopped in
on this trade five years ago. Yeah, stock is up
one nine hundred and fifty seven percent. That's insane.

Speaker 3 (04:24):
I didn't even know it was public back then, right,
if you could have bought and held it, it's up
ninety seven percent here today so far this year.

Speaker 4 (04:34):
It's on as tear. It's, as you said, just NonStop
through the winds.

Speaker 3 (04:39):
Wow, that's pretty amazing.

Speaker 2 (04:41):
The Stock Movers podcast from Bloomberg Radio. Check back with
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making news on Wall Street and for the latest market
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Speaker 1 (05:06):
H