GE Vernova Gains; Robinhood Declines; SK Hynix Profit Surge

0:02 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.

0:16 Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's Dan Curtis on another big earnings morning. We're waiting for the big dogs to report after the closing bell today. But we heard this morning from GE Vernova. How'd they do, Dan?

0:30 Good morning. Good morning.

0:31 That's right.

0:32 So the energy company is up nearly 3% under ticker GEV this morning. That's as it lifts full-year revenue guidance as well as EBITDA margin and free cash flow outlook for this year. This is really a story of the AI build-out power. The demand there pushes power revenue well above estimates, and the company saw its backlog growing $ 20 billion, just shy of $ 200 billion of backlog, a mark which the company sees surpassing this quarter. So that's helping to boost the stock. We also have some news of a deal.

1:03 GE Vernova to acquire Trench Group for $ 9 billion. The two companies will continue to operate independently until closing, which is expected late next year. I'm also going to just quickly mark Vertiv, ticker VRT, up 15%. Another power equipment company, And again, it's raising its outlook. So much power, so much demand for the power space. The CEO had a great quote, which is literally, quote, we are in the middle of the largest infrastructure build out and it's accelerating, end quote. The power name's really up this morning.

1:35 Yeah, certainly a big part of the AI trade story, as is SK Hynix for obvious reasons. The chipmaker reported its earnings and another blockbuster result.

1:50 Another one, SKHY, the ADRs that started trading a few months ago, those are up nearly 9% in the pre-market and it's lifting peers. Micron up 4%, SanDisk up 5% there. And this is so much about how far out is the memory demand. This has been a very cyclical industry. It's had its big ups, big downs. And the fact that AI is coming in and adding some stability here, is really getting the market's hype this morning. So SK Hynek came out and said that it has sold out of high bandwidth and conventional memory through 2029. So lots of demand going out years and years for these products.

2:25 Company also announced a $ 45 billion shareholder payout to give some of the cash back to its investors, which they are quite enjoying today. So we're seeing a large boost in memory. The one exception, Seagate Technology, down about 2%, not as bad as before. It posted numbers after the bell last night and has seen a little bit of weakness in the following session.

2:46 Well, another tech name, specifically FinTech, also reported earnings. This is another side of the coin for Robinhood. Absolutely.

2:55 So Robinhood, top and bottom line, missing the third quarter. Those shares under ticker HOOD, down 7% in the pre-market. Revenue from equities and net interest both contributing to the top line miss. Crypto was a bright spot with $ 120 million of revenue being above estimates. The company also saw fewer active users than expected. It only saw 13 million monthly active users, and that estimate was for over 40%.

3:21 14.4 million. That said, the company noted October net deposits have already topped $ 13 billion months to date, including $ 6 billion from the Dell family's contribution to the Trump accounts. Robinhood serves as the brokerage provider and initial trustee to those accounts. So it's seeing a little bit of a boost from that.

3:39 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.