Estee Lauder Mixed, Oracle Down, and Marvell Technology Drops After Lumentum Deal
Montag, 2. November 2026 · 4 min
Kapitelklicken springt direkt hin
Shownotes
On this episode of Stock Movers:
- Estee Lauder (EL) shares are mixed. Estee Lauder Cos. reported better-than-expected earnings and raised its outlook, a sign the beauty conglomerate’s turnaround effort is winning over consumers. The company said organic sales will likely grow by 4% to 5.5% in the fiscal year, and demand for fragrances led the growth, helped by the more affordable line Kilian Paris’ Cocktails Collection.
- Oracle (ORCL) shares are down. Oracle Corp. is raising $20 billion in debt and equity to finance its artificial intelligence infrastructure spending. The company is selling $10 billion of US dollar investment-grade bonds and a similar amount in common stock to help fund day-to-day operations.
- Marvell Technology (MRVL) shares drop. The company has reached a deal to buy Lumentum Holdings Inc. at an enterprise value of $115 billion. The all-stock transaction will give Marvell shareholders 67% of the combined company and is expected to close in the first half of 2028. Lumentum makes lasers and other optical technology for moving enormous amounts of data at high speeds, which underpins the AI boom.
See omnystudio.com/listener for privacy information.
Transkriptvom Podcast bereitgestellt · Zeitmarken springen hin
Bloomberg Audio Studios. Podcasts. Radio.
News.
The 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 some of the stocks on the move. And we can do that with Tatiana Daria. She's a strategist for MarketsLive joining us here in studio.
Tatiana, what are you looking at today? Looking at the shares of Estee Lauder here, what a turnaround was higher by 2%. Now it's lower by a similar amount, just off 1% here. The company reported better than expected earnings and raised its outlook, although analysts are saying that was somewhat expected and perhaps reflected in the stock. It was higher by 2%. 18% just last month alone. But if you look at the details, they were broadly positive. Organic sales growth expected to rise by 4% to 5.5% in the fiscal year, above estimates. Demand for fragrances is apparently leading growth, led by the more affordable lines, which are also some of the fastest growing brands. And Wall Street broadly sees this as a sign that the turnaround effort
is winning over consumers. Nonetheless, the stocks keep lagging here. The consumer discretionary baskets and perhaps the share reaction. It's because of that huge run up in the month of October, which I totally missed. All right. Next up on your list of stocks. Well, we have to talk about Oracle, right?
You guys mentioned it earlier. Now it's down 6%. It is raising $ 20 billion in equity and debt to keep financing the AI build-out. So $ 10 billion in common stock. The other $ 10 billion is in investment-grade bonds. And it's offering an elevated premium of roughly half a percentage point over its existing debt to lower investor demand. And this comes after last week they issued a very bullish long-term outlook setting those fiscal targets for 2030, which the market sort of took as a bullish sign of visibility. You would have expected to see a more positive reaction to this crisis. Nonetheless, it speaks to those jitters about financing, which are still alive and well in the market.
Bank of America leading both the debt and the equity piece there. Nice piece of business for them. What's next? Yep.
Well, sticking to the AI theme, Marvell shares here down 7% after acquiring Lumentum for $ 115 billion. This transaction will give Marvell shareholders 67% of the combined company. And on an equity basis, it is the top M & A deal of the year. Our Bloomberg data is showing, well, analysts say the deal makes sense, but it will be hard to finance. It is pricey, almost impossible to finance in cash because its cash holdings are just shy of $ 4 billion.
It would require a significant equity and debt package to find this deal. So that goes back to those financing jitters that are out there in the market. And both analysts from both companies are really questioning it because we see both stocks down today.
The 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.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.
