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Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.
Let's take a look at how some of the stocks on the move today A Paul Sweny alongside Normal liv We're joined by Billy Lipscholes. Billy, what you got first today?
Yeah, I want to start with Marvel Technology ticker mr VL right now at more than seven percent, trading at the highest level guys since late February. This comes after some pretty strong guidance from the company CEO kind of laying down, laying to bed some of the investor concerns about AI and AI consumption. They also announced plans to acquire startup Celestial AI for about three point twenty five
billion dollars. Looking through some of the analyst reaction, basically saying at the end of the day, the management team was very confident not only for next year, but also looking beyond twenty twenty eight, looking at that Celestial aideal, according to Jeff, saying that that helps provide a CPO story. Jury's still out, but basically, if they aren't giving revenue ramping from that deal until Q four of twenty twenty eight fiscal year has some time to work.
Seeing shares of Marvel down about ten percent so far this year, You're also got your eyes on get Lab.
Yeah, get Lab ticker GTLB talk about being down right now, down more than sixteen percent. Stocks trading at the lowest level since June twenty twenty three on a trailing twelve month average, down about forty three percent. Today's weakness comes
after earnings. Really not a bad report all things considered, but when you look under the surface and kind of calling out some of the reaction from Bloomberg Intelligence's Sunil rag Goopaul saying that basically concerns around AI headwins for the company four it's seat based revenue models continuing to show up overall consumer growth below consensus. Reading through some of the trading notes that I get in the morning, kind of not much going on in this market. You
really want to see growth. You want to see kind of an ability to show that not only are you benefiting from AI at a minimum, that you're not potentially at risk of AI. Get Lab not showing up in either regard.
I had no idea what get lab does thankfully Bloomberg has the dees function description. You're an application software company, so trying to get the AI wave there.
Yeah, okay, yeah.
What else we have? We got another one for us, Microchip.
We'll cap off with Microchip Technology, semiconductor manufacturer. I'll get that off the top. Take your MCCHP, a thirty three and a half billion dollar company. Right now, it's trading up almost ten percent, best days since mid August. This came again. We're still in the thick of tech earning season, so the company beat expectations on the top and bottom line again, maybe getting a bit of a benefit from
those Marvel numbers. But when you look at the analyst reactions basically saying that strong booking, showing up management talking up its backlog, it does seem like things are going quite well. Keeping in mind that the company he did pre announce booking strengths back a little while ago, so really looking at some of the management commentary on the call, does seem optimistic again. Ticker MCCHP on Microchip up more than eight percent.
I told us about the new issue market. Where are we because we had a flurry right after Labor Day and we're still seeing stuff or they've kind of shut down for the well.
We reported yesterday that a Medline, which could raise five billion dollars, would be the biggest deal of the year, expected to start that formal marketing process early next week. That's a Carlisle, Blackstone, h and f asset in the healthcare space gonna be a big one. So that'll likely make some bankers years in an odd deal. You know, really don't see these deals at the end of the tail end of the year, and.
A lot of action we've really been seeing in the healthcare space more broadly.
So yeah, it kind of you when you talk to investors in bankers, they're hoping that this can kind of open up private equity. There still is not the demand that we're seeing for biotech in particular, which is such a big deal for the new issue market. But Medline will be a good test.
If it's owned by these big private equity companies they've had an issue like this is how private acty was first explained to me when I was a kid. It's easy to raise the money, it's really easy to deploy the money. It's really hard to monetize your investments. That's where the real skill comes in. Where's that's been a challenge for private acuity.
It's been a challenge for private equity. It's been a challenge, particularly in the US. I go back to the middle of this year's sale point, a tom Bravo asset pushed on price. According to investors, they priced above range. They're down seventeen percent. Wow, NQ Global down twenty eight percent.
So when you look at the pree deals performance, you're buying IPOs for alpha generation, you want to outperform on an average basis the entire year here in the US only up seven percent, so you're trailing the S and P five hundred. You've got private equity leverage to sell down overhang. So Medline is going to be a good test of kind of deal execution, just given that it's been in the hopper for some time.
What are you hearing in terms of expectations for next year?
Head yet, opium raised, rains eternal. I mean bankers like bankers are candid right, expectations we're high for twenty twenty five, it was a fine year. Expectations are that we should at least match where we're at in twenty twenty six. The big question is do private equity sponsors show up, are they willing to get these deals out of the door? And if that doesn't happen, is there enough tech companies
that can kind of carry the baton. There's a lot of debate around who would go public and how to fil some of that volume.
Yeah, I would think, and I've been proven wrong that if I'm private ECUA, I actually want to get these things out the door. I need to monetize these things because I need to go out return that capital to my ALP so I can raise more capital and get more management fees. But I know they're just just loath to do a down round like this IPO something at below where they're carrying.
Well, that's the tough part, right. So if you are in the market or want to be in the market for another fund, well, people want to see where your IR is. If I take you public at a discount to where we bought it, I'm not really delivering on those metroles.
The Stock Movers Report from Bloomberg Radio. Check back with us throughout 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.