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Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's Valerie Titel. Starting off with the stock that is putting a weight on the broader market this morning. A lot of investors wondering whether Oracle is going to be living up to its name when it comes to AI concerns. Valerie, good morning.
Yeah, Oracle really sinking at the moment, down eleven and a half percent after earnings showed a decent jump in AI spending, a forty percent rise in capex guidance to now fifty billion for next year. Alongside that, they gave a cash burn in the previous quarter that was ten
billion dollars. The revenue growth was strong, but it's not accelerating, and it's making the market nervous over just a possible mismatch over the timing and scale of the return on this massive investment in cloud that Oracle has made to fulfill the large contracts is signed with Open AI. Is that return on investment going to come in time to service the near one hundred billion dollars of debt that
is now in the company's name. So Oracle down eleven point six percent and dragging down the wider Nasdaq with it.
Yeah, So what's the broader read through for some of the other big tech stocks.
Well, if you look at Nvidia, who's kind of the darling of the AI trade, the main AI chip maker, world's most valuable company, it's down one point seven percent. And then on the back of that, if you look at other neo clouds, so other competitors to Oracle in this space, Core Weave is down three point eight percent, and a bs is another stock that is in the
neocloud space, it's also in the red. And then if we look wider at global markets, we had soft Bank, the prominent Japanese tech investor who's heavily invested in open Ai. Those shares were down near eight percent in Tokyo trade. And here in Europe, SAP, one of the biggest tech companies in Europe, was down two point four percent. So a lot of big tech names causing some drags, and some of the major indices across the globe.
Got to move from the AI trade to the obesity trade because it looks like a big name there has made some significant news.
Eli Lilly Eli Lilly.
Out with results of phase three trials of their GLP one obesity shot and man it is positive. Lily shares up two point seven percent, the body weight being reduced by a whopping twenty three percent over sixty eight weeks in the study using their new obesity shot, and results exceeded expectations so by so much that some patients in the study lost so much weight they decided to drop
out of the trial, according to Eli Lillly. So Eli Lilly shares are gaining off the back of this positive of results from their phase three trials of their obesity shot, and very interesting, Nova Nordis one of their main competitors. Those shares are all headed higher still this morning, so it's not necessarily denting their shares their main competitor, Nova Nordis, but I have to note Nova Nordisk has been on a assive backfoot last eighteen months.
Got to talk about PDD because investors are focusing on this one for a rather unusual reason, aren't they.
Yeah, So PDD this is the owner of Temu, who is the aggressive online Chinese retailer. The shares are down nearly two and a half percent after some quite comical reporting that Chinese regulators got into multiple fistfights between employees at their Shanghai premises. This week, Poleast made several arrests. The Chinese regulators were investing fraudulent deliveries, and it's triggering
some investor concern about increased regulatory scrutiny. Obviously, we all know or we all remember the high profile antitrust probe it led against Ali Baba back in twenty twenty, so again some speculation that there could be a regulatory crackdown on PDD, the owner of Temu.
The 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. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.