Marvell Slides on Lumentum Deal, Marriott Gains, Rivian Jumps

0:02 Bloomberg Audio Studios. Podcasts. Radio.

0:06 News.

0:08 The Stock Movers Report. Your roundup of companies making moves in the stock market. Harnessing the power of Bloomberg data. I'm Tim Stenevek along with Carol Master. Let's take a look at some stocks on the move today.

0:20 We're joined by Bloomberg News U.S.

0:21 Equities reporter Matthew Griffin. Hey, Matt.

0:24 Hey, Tim.

0:25 Well, should we start by talking about the biggest deal news of the day? Let's do it.

0:30 It's a big one, right?

0:31 It's a really big one. It's the second biggest tech tie-up ever, if it comes to pass, after SpaceX XAI. So that's Marvell acquiring a Lumentum for an enterprise value of $ 115 billion. You have both stocks tanking. So Lumentum, that's ticker L-I-T-E, It's down 18%. Yes, this deal between the chip maker and then Lumentum, they make optical networking gear.

0:56 That would create this AI infrastructure heavyweight. At the same time, there are a lot of concerns about AI infrastructure right now. The market is very jittery in general. We have the Philadelphia Semiconductor Index off another 3% today. Then you've got analysts who don't expect a lot of potential cost cutting between these companies. You've got a really ambitious target to get regulatory approval. That's 2028. And there are just reasons that investors are clearly not happy here. Marvell, that's ticker MRVL, is down 13%. Those holders would get about 67% of the combined company.

1:31 There are also two names that have been on a tear this year. I mean, Marvell now with the pullback in today's session, still up a hundred percent year to date. Lumentum, even with its pullback today is still up about 88% year to date. So they have been, you know, a little pricey.

1:47 And that's the story with all of these chip names is they have these big swings, they have these big sell-offs. And then you look at the year to date and you see that there is always still room to fall when things go wrong because we just rallied so much in the first half of the year. And we've been subject to the volatility that came after that ever since.

2:04 Okay.

2:05 Well, that's a big deal that we're going to be talking about. Now to something kind of low tech-ish.

2:09 What else you got for us? Yes. Well, I've been looking at hotels. That's Marriott International, ticker MAR, up about 4% after raising their profit guidance for the year. So that's Adjusted earnings per share of as much as $ 12. 14. They previously saw no more than $ 11. 81. They actually are seeing a lot of strength globally in international revenue per available room, REVPAR, that key metric for hotels. It's a little bit different than what you heard from some other companies earlier. Like from Hilton last week, they saw a little bit of weakness globally due to the conflict in the Middle East.

2:46 Marriott also being hit by the war, but offsetting it elsewhere around the world. You also had Bloomberg Intelligence weighing in, saying they're not highlighting some of the impacts of the midterm elections, that kind of thing, that their competitors have. So investors are very happy with this report.

3:04 So Tim bought a Rivian, and Rivian's shares are up. He did not buy a Rivian. You think I could charge that thing in Brooklyn?

3:11 Or I can't even find a parking spot?

3:13 That is so true.

3:14 Long cord for mouse.

3:15 No, no Rivian at Stenevec. It is higher today, though.

3:18 Yes, and consumers are buying a lot of these R2 SUVs. It's off to a strong start. We don't have a ton of specific numbers, but we know that helped their earnings report last week. Now it has earned them an upgrade at UBS to buy from neutral SUVs. basically ahead of the R2 becoming a bigger part of the electric vehicle maker's business. So that stock is ticker RIVN is up almost 9% today, building on a 6.2% increase after those decent earnings on Friday.

3:50 Still down about 32% year to date with about 15% of the float short. And I just have to say, every time I see one of those R2s on the road, it just reminds me of like Cars, you know, the movie.

4:01 I think they're cool looking.

4:02 They look like they belong in the movie, don't they? With those eyes.

4:06 Absolutely. It's kind of cute.

4:09 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.