Super Micro Jumps; AT&T Falls; Netflix Sales Growth to Decline

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. Let's take a look at some stocks on the move today.

0:19 Alexis Gustafsson, Stock Movers, what do you have?

0:22 Thanks a lot, guys. I want to start with a big winner here this morning, and that is Supermicrocomputer, ticker symbol SMCI. Stock is up more than 12% right now. The maker of servers reported blowout preliminary first quarter sales that were stronger than expected at citing AI related demand. We've also got rivals like Dell and Hewlett Packard jumping sort of in tandem with Supermicro. So it now sees sales of between 18 and a half and 19 and a half billion dollars prior to its target of 14 and a half billion. And at the 19 billion point, Supermicro sales would have surged 280 percent. It expects gross margins of between 12 and 12 and a half percent.

1:00 It had targeted about 10.5%. So the full results are going to come out November 3rd. But this is sort of a nice teaser for Wall Street and the stocks getting a nice lift.

1:09 Yeah, exactly. Perfect. Teaser.

1:12 All right, a little AT & T action. Strong Quarter raised its guidance. You'd think the stock was higher on that news, but oh no, it is down more than 6%.

1:21 Why?

1:22 Wall Street is upset about fewer mobile phone subscribers. The company added about 379,000 monthly mobile phone net additions. That missed by about 9,000. And it follows an aggressive series of perks and incentives that AT & T has been trying to offer, you know, because of this escalating price war. Every time you turn around, I feel like there's a new commercial out there trying, you know, from the phone companies trying to get your business and also now new competition from SpaceX. So a Bloomberg intelligence analyst, John Butler, writing that uncertainty about SpaceX could drag on AT & T' s profit margins and push it to spend even more to acquire and keep customers.

2:01 It's a It's a brutal business. It is so competitive. I mean, all their businesses, wireless, wireline, the broadband, so competitive out there. Yeah.

2:10 And speaking of competitive, what about Netflix? I mean, competition coming every which way from YouTube, even TikTok. The stock is down about 6% right now, slowest sales jump in three years, forecast a fourth consecutive quarter of slowing growth. The company blaming the shortfall on the advertising business, which it says is on pace to deliver 300 million less than expected. So it's trying to overhaul its leadership, we know, to address this decline. in the quality of its programming.

2:38 By the way, Netflix's stock is down about 27% so far this year.

2:43 Yep, yep.

2:44 I think you're right.

2:44 You were talking earlier about it becoming a mature company, right?

2:47 It's now not a kid anymore. When you start talking about advertising shortfalls and programming, it sounds just like the discussion you have for a Disney or a Paramount or a Fox, whereas the Netflix conversation used to be, how many subscribers did you add?

3:01 Yeah, they don't do that anymore. They don't even break that number out anymore. Do you want one more?

3:06 Sure.

3:06 Abbott Labs, a U.S. pharmaceutical company, of course. Third quarter results right in line with estimates. And now it's going to spin off its nutrition unit into a separate publicly traded company. You know, they make the Similac infant baby formula. So they said they're going to spin that off. That way they can focus on their health care unit instead.

3:25 But shares of Abbott Labs real quick here. Oh, down four and a quarter percent and off 18 percent year to date.

3:32 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.