Closing Bell: Akami Misses Expectations, Deere Soars, Klarna Tumbles - podcast episode cover

Closing Bell: Akami Misses Expectations, Deere Soars, Klarna Tumbles

Feb 19, 20266 min
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Episode description

Today's biggest winners and losers in the stock market.

On this episode of Stock Movers:

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Katie Greifeld, Carol Massar and Tim Stenovec.

- Akami Technologies (AKAM) shares are down 7% in extended trading, after the software company gave an outlook for adjusted earnings that is weaker than expected for both the first quarter and the full year.

- Deere (DEER) shares climbed the most in six years as the world’s largest farm-machinery maker boosted its annual profit outlook, anticipating a long-awaited upturn in the agriculture economy. Deere shares rose as much as 13%, the most intraday since March 2020, to an all-time high. The stock, one of the biggest gainers in the S&P 500 on Thursday, has rallied 44% this year on increased hopes for a recovery.

- Klarna (KLAR) has reported two consecutive quarters of losses and is struggling to convince investors to hold on for future profit, less than six month after its initial public offering. Shares in the payments firm are on course for their worst day since listing after Klarna reported a pretax loss of $241 million for last year, even as it pulled in record revenue. As the Stockholm-headquartered firm has expanded beyond its original buy-now-pay-later product into more lucrative longer-term credit, it’s had to set aside more money for potentially souring loans. Klarna has also increased its spending on technology, product development and marketing. In 2024, the firm reeled in a pretax profit of $33 million.

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Transcript

Speaker 1

Bloomberg Audio Studios, podcasts, radio news.

Speaker 2

This is the closing bell on this stock mover's report. The company's making moves at the close of US trading with Karl Masser, Tim Steneback, Romain Bostik, and Katie Greifel.

Speaker 1

While we are getting some earnings, not necessarily the biggest earnings in the world, but we sort of walked through them to give a broader read here on what's going on in the broader economy and more importantly specifically in the tech space. Akamaia, which I guess makes a lot of the pipelines, if you will, of the Internet, reporting a just a DPS that did beat a dollar eighty four versus street estimates of a dollar seventy six revenue

inline at about one point one billion dollars. But for the full year twenty twenty six, the company says expect revenue in a range of four point four to four point five to five billion dollars, a low into that range is in line with the average of analysts estimates, and for the current quarter, the fiscal first quarter, the company sees a just a dps in a range of a dollar fifty to a dollar sixty seven. That might

be why the shares are down. The street was looking for a dollar seventy five, so the top end of that range a below significantly below the average of analyst estimate.

Speaker 3

Yeah, come ies up about twenty five percent here in twenty twenty six, but definitely a haircut if you look at that after market trade. So continuing to track that one, Hey, let's go to some of the individual gainers. If we may Omnicom. We were breaking down the advertising and marketing company about twenty four hours ago. It came out after the close, and this is your number one gainer in the S and P five hundred again of about fifteen percent here, biggest intra day move that we've seen since

about February twenty twenty seconds. So this is a pretty substantial move in this name. The company did report fourth quote a revenue that beat consensus estimates. Companies board also authorized a five billion dollar share buy back, and so we definitely have seen investors moving into this one. Let's move on over to the number two gainer in the s and P five hundred. We're talking about Deer again of just shy of twelve percent. It's the world's largest

farm machinery maker. And it did boost it's annual profit outlook, anticipating a long awaited upturn in the agriculture economy, so the company increased its outlook for small agriculture and turf, as well as construction and forestry, but its largest segment of production and precision agriculture, they did point out remains under pressure, and then just got to mention Etsy, we were talking about this one two twenty four hours ago at CS high is almost thirteen percent intra day, but

finishing with a gain of about nine percent. The online marketplace reported its fourth quarter results, but also a very big impact of the company's deal to sell its deep hop business to eBay for about one point two billion dollars.

Speaker 4

Yes, Romain, I.

Speaker 1

Thought you were going to do the third biggest gainer in the S and P. You did the first, the second just skipped over there.

Speaker 4

You no, quite, Frankly, I'm not a one to two three kind of gal. You should know that. What was it?

Speaker 3

What is it?

Speaker 4

Roman? What if you do?

Speaker 1

It's Texas specific land. It was about ten percent here on the day in Katie Greifeld, speaking of Texas, I think there's some earnings out Also.

Speaker 5

Speaking of Texas, this is coming from Texas Roadhouse. That's right.

Speaker 4

We do have them compodies known for their role in Texas. They were hoping for that text.

Speaker 5

There's literally Texas in the name. Let's talk about some of these numbers here. Fourth quarter revenue coming in a bit light one point four eight billion dollars. The estimate was for one point five billion dollars. EPs also coming in a little bit below the year over year figure one dollar twenty eight cents versus one dollar and seventy three cents a year ago, so missing when it comes

to it's EPs there. It's interesting they are raising their dividend here they do see twenty twenty six commodity cost inflation about seven percent. We know that is a big deal specifically for a lot of these names in the restaurant industry. And you can see shares down about eight tenths of a percent. You know, as we start to parse through some of these numbers here.

Speaker 4

Well, let's look at some of the worst performers in the S and P five hundred today, weighing down the index booking holdings among the biggest drags today, shares fell to their lowest level at least going back to September of twenty twenty four. Shares ended up closing down by more than six point one percent. The company reported fourth quarter adjusted EPs below expectations. Rest of the results though largely above consensus. This is a stock that's four thousand dollars.

The company gave a growth forecast approved to twenty five to one stock split. DA Davidson, Kanter Key Bank all among the firms that cut their price targets after earnings. Also keep an eye on what happened today with Blue Oul Capital. Shares taken a hit after the company decided to restrict withdrawals from one of its private credit funds. It raises concerns about the entire private credit industry. At one point eight trillion dollar market shares down today by

six percent. The firm set investors in Blue Oul Capital Corp. Two will no longer be able to redeem shares on a quarterly basis, and the funnel return capital through periodic distributions funded by loan repayments, asset sales or other transactions. And finally, watching what's going on today with shares of Klarna Group. They fell by more than twenty six percent. Let's just round that down. Round it up twenty seven percent come on this after the company reported two consecutive

quarters of losses. It's struggling to convince investors to hold on for future profit pretext loss of two hundred and forty one million dollars for the last year. Despite pulling in record revenue, it set aside more money for potentially souring loans. So I don't know if that's a commentary about the customers of Klarna that it serves around the world.

Speaker 1

Yeah, I'm actually intrigued by that story because wasn't that whole idea is that given the short term nature of these loans, they weren't carrying as much credit risk as maybe the exactational banks were. But definitely something to look into.

Speaker 4

That's a big haircut today, twenty seven percent.

Speaker 1

Yeah, it is, it's huge. Just real quickly, let's going ball, tim, what's going on over there?

Speaker 4

That's that a that's going fall. That's a big drop, that's a full shape. Yeah, thank you, Katie.

Speaker 2

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. Send to Bloomberg Radio Live Catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.

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