Closing Bell: Electronic Arts Soars, Intel Rises, Klarna Falls - podcast episode cover

Closing Bell: Electronic Arts Soars, Intel Rises, Klarna Falls

Sep 26, 20255 min
--:--
--:--
Download Metacast podcast app
Listen to this episode in Metacast mobile app
Don't just listen to podcasts. Learn from them with transcripts, summaries, and chapters for every episode. Skim, search, and bookmark insights. Learn more

Episode description

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, Vonnie Quinn, Carol Massar and Tim Stenovec.

- Video-game maker Electronic Arts (EA) is in talks to be taken private by a consortium led by Silver Lake Management, Saudi Arabia’s Public Investment Fund and Jared Kushner’s Affinity Partners, according to people familiar with the matter. The company, known for popular titles such as Madden NFL, The Sims and Battlefield, could announce a deal as soon as next week, said the people, who asked not to be identified discussing confidential information. JPMorgan Chase & Co. is working on a financing package for the buyers, the people added. Shares of Redwood City, California-based Electronic Arts closed about 15% higher at $193.35 at in New York, giving the company a market value of roughly $48 billion.

- Intel (INTC) shares continued to rally on word that it approached Apple about securing an investment. Apple and Intel also have discussed how to work more closely together, said the people, who asked not to be identified because the deliberations are private. The talks have been early-stage and may not lead to an agreement, the people said. Shares of Intel gained as much as 7.9% in New York trading on Thursday. They had jumped 6.4% the previous day after Bloomberg News first reported on the discussions. Apple rose less than 1% to $253.71 on Thursday. Shares closed higher on Friday.

- Just weeks after a buzzy trading debut, Klarna (KLAR) shares fell below the initial public offering price for the first time in the face of increased competition from rivals and worries about the path of interest rates. The digital-payments firm’s stock fell 3.8% to $39.94 Friday, closing below the $40 listing price. Klarna started trading on Sept. 10 after the company and some of its backers raised about $1.58 billion in an offering that was double-digit oversubscribed and priced above the marketed range.

See omnystudio.com/listener for privacy information.

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 Carol Masser, Tim Stenebeck, Romain Bostik, and Scarlett Food.

Speaker 3

So many gainers look at the green on that map, so many gainers to choose from. So get ready for Romain to interrupt me and add to my list. Having said that, I got to talk about EA Electronic Arts because that is your number one gainer in the S and P five hundred NASDAQ one hundred. Kind of ran into that spot after we saw that headline cross initially with a Wall Street Journal story, but Bloomberg also matching the reporting. Electronic Arts up about fifteen percent here at

the close today. This as that story came out that this company is nearing a deal to go private. It would be a massive deal to go private. We're talking about maybe a fifty billion dollar leveraged buyout. It would be the largest buyout of all time, LBO of all time. This is scoring to people familiar again. We're talking about silver Lake said to be a part of that Saudi's public investment fund. So we will see ultimately that happens. But what are you thinking?

Speaker 1

Well, when I looked up, you know, anytime I see these deals, always look to see where they're ranked. I was actually surprised that fifty billion is basically the threshold for the biggest buyout ever potentially obviously if this actually comes to fruition, I mean you would think there would have been something bigger. But it was really that TXU deal. I guess. You know, way back when before Tim was born, I was.

Speaker 4

Thinking, I was like a forty five well adjusted for inflation.

Speaker 3

I was thinking about, like, is it KKR and Nibisco and least.

Speaker 1

Thirty one billion? I mean that's and that's a real dollar. I mean it's Tim's point too. You have to adjust for inflation. But still, and then you had, you know that forty four billion dollar Twitter buyout, which is a deal.

Speaker 3

All right, so ea, definitely on my radar. A couple of chip names I just want to mention Take two was up.

Speaker 1

Also by about five percent.

Speaker 4

There you go, so this is what happens. Funny.

Speaker 3

Yeah, ten minutes later I get to the last one. All right, so chip names, let me go through it. We had Global Founderies and Intel both rallying Global Founderies up about eight percent, Intel up about four and a half percent. This is after again the journal Wall Street Journal report that the Trump administration is weigh a new plan to reduce US reliance on chips made overseas. So we did see some movement in particular in those two names.

I also want to mention Pacar. It was a top in the s and P five hundred and Nawzak one hundred here at the close, up about five point two percent. It's a chrup maker, and it rallied after the President Trump anounced new industry specific tariffs that include a twenty five percent levy on heavy trucks and LSA. This company will benefit because it makes a lot of its trucks right here in the United States. US production.

Speaker 2

There you go.

Speaker 4

Can you get them at costco?

Speaker 3

I don't think so well.

Speaker 4

That's where I'm going right now, because it was the worst performer in the S and P five hundred, down two point nine percent today. The company did report after the bell yesterday a mixed fourth quarter, including adjusted earnings per share and comp sales that excluded gas and FX that came in ahead of expectations, but analysts had high expectations. They said that the premium valuation versus its peers contributed to high expectations going into this print. Shares down today

by about two point nine percent. OURH, they operate the restoration hardware chain of stores. Shares of furniture retailers, including RH tumble today. This after President Trum announced the US will enact new tariffs on imported kitchen cabinets, bathroom vanities, and other home products next week. URH, with the outspoken CEO, has already declined forty six percent this year. That was through yesterday's close. And finally, Klarna kind of been a

mixed road for IPOs of late Romaine. Clarna fell three point eight percent today. Remembered iPod a few weeks ago about at forty dollars a share fell bolo the IPO price for the first time and increased competition, worries about interest rates. We spoke to the CFO of the buy now, pay later firm affirm yesterday, who essentially told us the same thing that Max Levchin told us a few weeks ago. The CEO of a firm, Yeah, everything looks good for

us out there in the landscape. We're not seeing any cracks in the consumer.

Speaker 1

All right, let's check it on yields real quickly. Here a mixed bag, but generally speaking, yields did not go much of anywhere. You're looking at moves that basically about one basis point down on the two year up on the longer end of the curve. We should point out on a weekly basis though, we are pretty much higher across the curve as a lot of people now really starting to rethink whether we are indeed going to get fed raad cuts.

Speaker 2

This stock Movers 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.

Transcript source: Provided by creator in RSS feed: download file
For the best experience, listen in Metacast app for iOS or Android