Bloomberg Stock Movers
2026-05-25 · Hosted by — · Bloomberg / iHeartMedia
Executive Summary
Bloomberg’s weekly earnings preview covers three key reports in the week ahead: Salesforce (Wednesday) facing an AI-driven reset with an underperform reinstated by Bank of America; Dell (Thursday) with a high bar set by Lenovo’s blowout and AI server momentum but options implying an 11% move; and Abercrombie & Fitch (Wednesday) navigating softening consumer trends at Hollister and Iran-driven fuel cost headwinds. The consumer picture is further fleshed out by Gap and Dollar Tree earnings that will test spending across the income spectrum.
Key Stories & Changes
1. Salesforce — The AI Reset Story
CRM: Salesforce — Down 32% YTD — AI-driven SaaS reset; new contracts slowing
Bank of America reinstated with underperform — company facing an AI-driven reset as prospective enterprise customers are either easing off contracts or waiting
Gross margin concerns for H2 as increasing AI investments eat into operating margin
Longer sales cycles driven by geopolitical uncertainty (Iran War) compounding existing competitive pressure
Analysts broadly skeptical the company can hit its own high bar for H2 growth acceleration
Pre-earnings sentiment: negative; “definite early victim of the SaaS apocalypse”
2. Dell — AI Server Demand in Focus
DELL: Dell Technologies — +130% YTD; +16% on Friday alone — AI server demand; Lenovo blowout read-through
Options market implying an 11% post-earnings move (could go either way)
5,000 AI factory clients including Eli Lilly, Honeywell, and Samsung; added 1,000 new customers in the past quarter
Morgan Stanley and Bernstein already raised price targets ahead of results
UBS downgraded to neutral — investors are “largely already pricing in Dell’s AI server demand”; limited upside surprise room
Bloomberg Intelligence: expecting the print to illustrate “strong demand momentum across all of Dell’s business segments”
High bar concern: stock up 130% YTD; stock up 30% since Dell’s Vegas event a few weeks ago
3. Abercrombie & Fitch — Consumer Softness Test
ANF: Abercrombie & Fitch — Analyst sentiment mixed — Hollister softening; fuel cost headwinds
Raymond James trimmed price target on expectations of softening trends at Hollister (teen/tween brand)
Jefferies flagging “decelerating data” as key investor concern
Company was among the first to warn about headwinds from the Iran conflict — extra fuel costs and customers “pinching their dollars”
Broader context: company benefited from 90s/early-2000s fashion nostalgia wave; now facing questions about sustainability of that trend
4. Broader Consumer Picture — Gap and Dollar Tree
Gap and Dollar Tree also reporting, giving a view of consumer spending across the income spectrum
Key question: will lower-end retailers like Dollar Tree see relative upside as consumers trade down, or are lower-income consumers cutting back entirely?
Abercrombie’s early Iran conflict warning is a leading indicator for the sector
Trends Identified
1. AI Divides the Tech Sector Into Clear Winners and Losers
Dell and Salesforce sit at opposite ends of the AI trade spectrum this earnings season. Dell is the hardware pick-and-shovel play with real AI factory customer additions. Salesforce is the SaaS incumbent facing enterprise customers who are pausing or delaying deals while they evaluate AI-native alternatives. The week ahead will confirm whether this divergence is structural (Salesforce permanently disrupted) or cyclical (deal delays recovering in H2).
2. The High Bar Problem for Best-Performing Stocks
Dell’s situation illustrates the market’s central challenge for high-momentum names: up 130% YTD and 30% post-Vegas event, the options market implies an 11% swing because the bar for upside surprise is genuinely high. UBS’s “already priced in” downgrade reflects a rational concern that when expectations are fully embedded, execution must be near-perfect to justify the current price. This is the same dynamic that saw Nvidia fall 4% on a strong quarter.
3. Consumer Stress Is Real and Spreading Across Retail
Abercrombie’s early Iran conflict warning, Raymond James’s Hollister concern, and the broader context of rising fuel costs combine to paint a picture of a consumer that is actively recalibrating spending. The Dollar Tree vs. Abercrombie comparison will reveal whether this is purely a discretionary cutback or a more structural shift that even value retailers cannot escape. —-
Sentiment Analysis
Overall Market Sentiment: Selective — Bullish on AI Hardware, Cautious on SaaS and Consumer
The week-ahead preview reflects a bifurcated market where hardware beneficiaries of AI demand are well-positioned while software incumbents and consumer discretionary names face meaningful downside risk.
Risk Factors Highlighted
Salesforce AI disruption is accelerating: BofA’s underperform reinstatement and longer sales cycles suggest the AI reset is not temporary — enterprise customers are actively delaying or eliminating CRM contracts.
Dell’s high bar: Options imply 11% move; stock up 130% YTD means even a strong beat could disappoint if guidance is conservative.
Consumer fuel cost headwinds spreading: Abercrombie’s explicit Iran conflict impact warning is an early indicator that retail across multiple price points will face headwinds in coming quarters.
Dollar Tree/Gap uncertainty: If even value retailers show weak results, it suggests broad consumer spending contraction rather than a rotation story.
SaaS sector “apocalypse” risk: Salesforce as early victim, Intuit down 20% on TurboTax deceleration — the pattern suggests AI is beginning to structurally disrupt software subscription models.
This episode was covered in today’s The Market Signal — 2026-05-25, a cross-source synthesis of multiple podcast reports.