Lumentum Drops, Oracle Down, and Estee Lauder Mixed After Better Than Expected Earnings

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0:08 The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.

0:16 Let's get a sense of what the stock movers are doing in a day when it is a very positive tape. We can do that with Christine Aquino. She's a managing editor for MarketsLive. Christine, what are you looking at today?

0:27 All right, Paul, let's kick it off with Lamentum since it's part of a big M & A Monday deal. So ticker L-I-T-E. That stock, unfortunately, not in the green very much and red down nearly 11%. as we speak. And of course, the big news is that Marvell is reaching or has reached a deal to buy Lamentum at a value of $ 115 billion. The transaction is going to be all stock and will give Marvell's shareholder 67% of the combined company that is expected to close in the first half of 2028. So this is the top M & A deal of the year. It is the largest ever in the global tech sector outside of the SpaceX industry.

1:04 xai merger according to our own data and you know this isn't really news in terms of the company's ties because marvell had already purchased laser technology from lamentum earlier in the year and it has been increasing its bets on optical and photonic technology so interesting though that the stock is down perhaps investors are seeing kind of The consolidation is not necessarily immediately good news. I mean, there's a lot of concerns about rising prices in the AI build out supply chain. Perhaps that's something that they're worried about eventually that could break supply. the AI trade. So it's a little bit of a stock's on back foot this morning.

1:41 And, Scarlett, the most notable part of this transaction is who is advising Marvell? It is Catalyst Partners.

1:46 Really?

1:47 You don't know who they are? Go back and Google them. It's Frank Cuatrone. You don't know who he is?

1:51 Go Google that.

1:51 He's old school.

1:52 He is old school. The leading M & A advisor. I'm going to say In Silicon Valley for 40 years.

1:58 This was like before the dot-com bubble, right?

2:01 This started in the 80s. And when I was at Credit Suisse First Boston, did some stuff with him. He was rocking it then. He's still rocking it here. And he's built a firm that continues to be at the forefront of M & A in Silicon Valley.

2:12 By the way, Catalyst Partners spelled with a Q.

2:14 Yep, for Quattrone.

2:15 Okay. There you go.

2:16 All right. Good information there.

2:19 Christine, next up on your list of stocks to watch.

2:21 Let's take a look at Oracle Scarlett. So shares also down ticker O-R-C-L and they're currently trading lower by 5.8%. And we know that Oracle is coming to the market again. They're raising $ 20 billion, both in debt and equity, $ 10 billion each to finance their artificial intelligence infrastructure spending. So We did see Oracle stocks surging last week and then also a measure of its credit risk plunging because the company committed to limiting its gross debt to $ 10 billion through the fiscal 2030 and projected a free cash flow that eased investor concerns. And so there's a lot of questions over Oracle's dependence on capital markets, particularly on debt markets, given that it's not as highly rated as some of

3:04 its peers in the tech space. But You know, we'll see how this latest offering is going to go. Quite typical for shares to kind of be on the back foot just as these transactions make their way through the market and the market digesting them. Bank of America is going to be leading both the transactions. So potentially, if it goes well, it could be a nice holiday payday for some of those bankers involved.

3:26 All right.

3:26 Estee Lauder. SA Lauder, so let's take a look at that. Ticker EL, shares are up more than, or well, shares are down now. It was up earlier, but they're now down 1.9%. It is a beat and raise fiscal first quarter for SA Lauder. Adjusted first quarter EPS, 72 cents, which is nearly 20 cents above the street estimate. And then they also boosted their net sales forecast. Bloomberg Intelligence highlighted a more geographically balanced recovery. Supported by strength and travel retail and 9% growth in China. That's a big market for them, but their fragrance offsets the softer than expected skincare and makeup sector.

4:04 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.