Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg data.
Speaker 3: Let's take a look now, add some stocks making news
Speaker 3: in the week ahead. I'm Nathan Hager, joined by Bloomberg
Speaker 3: Equities reporter Matthew Griffin with more earnings to stay on
Speaker 3: top of this week, Matthew, maybe the biggest name that
Speaker 3: we're looking at is the biggest name in entertainment, Walt Disney,
Speaker 3: reporting earnings on Wednesday, the first one under the new CEO,
Speaker 3: Josh Tomorrow, if I'm not mistaken, Is that right?
Speaker 2: Yes?
Speaker 1: And Nathan, I think that's going to put a lot
Speaker 1: of focus on what the company says here, on the
Speaker 1: questions that they take from analysts, and on what the
Speaker 1: new CEO has to say. You do have relative optimism
Speaker 1: among analysts who expect single digit growth in both adjusted
Speaker 1: earnings per share and revenues. That's a dollar fifty one
Speaker 1: in EA and nearly twenty five billion dollars in revenue.
Speaker 1: But if you think about the news for this company
Speaker 1: in recent months, a lot of it has again been
Speaker 1: about what the company has to say so on the
Speaker 1: financial side, you had to share sell off. After the
Speaker 1: last earnings, Disney said they expected only modest growth in
Speaker 1: the March quarter as they, for example, had trouble getting
Speaker 1: international visitors to come to their parks. It's getting more
Speaker 1: expensive to air live sports. Now under Josh Tomorrow's tenure,
Speaker 1: you have this dust up with the Trump administration yet
Speaker 1: again over Jimmy Kimmel. I think analysts are really going
Speaker 1: to pepper this company with questions and are going to
Speaker 1: be listening closely as our investors to what they have
Speaker 1: to say.
Speaker 3: I mean, what is the pressure on Tomorrow to outperform
Speaker 3: given the stock performance so far this year?
Speaker 1: Yes, you know, it's interesting. I do think investors had
Speaker 1: some level of patients with Bob Iger, even though the
Speaker 1: company wasn't necessarily seen as innovating or as growing to
Speaker 1: the extent that people wanted. So he may have a
Speaker 1: bit of runway, and he's making some moves. The company
Speaker 1: does have plans to cut jobs in an attempt to
Speaker 1: cut costs. But I do think there's going to be
Speaker 1: an expectation eventually of better resultant, better stock performance than
Speaker 1: Eiger delivered in his second tenure at the company. The
Speaker 1: stock was up during his time as CEO, but badly
Speaker 1: trailed the broader market.
Speaker 3: All right, so that could be the marque event this week.
Speaker 3: We hear from Disney on Wednesday, but before that, after
Speaker 3: all the tech earnings we saw last week, we hear
Speaker 3: from one more name in the chip space on Tuesday.
Speaker 3: What are we looking for from Advanced micro Devices?
Speaker 1: Well, Nathan, I think investors are going to be expecting
Speaker 1: a lot from the chip maker. You have the shares
Speaker 1: trading at all time highs, and if you think about
Speaker 1: what we've seen in recent weeks, you had blockbuster outlooks
Speaker 1: from Intel, from Texas Instruments, share reactions to match. Now
Speaker 1: you've had the sort of hyper scaler technology. Companies such
Speaker 1: as Meta raised their expectations for capital expenditures this year.
Speaker 1: If you look at the actual numbers that analysts are
Speaker 1: looking for, they're looking for just under nine point nine
Speaker 1: billion dollars in revenue. That's in the range that AMD
Speaker 1: gave when they last reported earnings. That being said, that
Speaker 1: was seen as disappointing at the time, you had the
Speaker 1: stock's steepest drop in years after that, and if you
Speaker 1: look at the stock rally now, investors may be looking
Speaker 1: for some upside there.
Speaker 3: Yeah, I mean there's a lot of upside already with
Speaker 3: this stock. It's been surging since the start of the year.
Speaker 3: Is this almost a price to perfection moment for amd so?
Speaker 1: Yes, this stock up sixty two percent year to date,
Speaker 1: and it does feel like the entire semiconductor ecosystem is
Speaker 1: price to perfection. You had the Philadelphia Semiconductor Index just
Speaker 1: went on a record long winning streak. You just look, basically,
Speaker 1: there's green across the board. And yet at the same time,
Speaker 1: there are questions about the profitability of investments in artificial intelligence.
Speaker 1: Investors just constantly have their eyes on that, and I
Speaker 1: do think each individual company is going to be expected
Speaker 1: to deliver something concrete for investors to chew on.
Speaker 3: Also on Wednesday, we hear from Marriott International. Always curious
Speaker 3: to see how travel names are doing given all that's
Speaker 3: going on in geopolitics.
Speaker 1: Yes, And the really interesting thing here with Marriott International
Speaker 1: is that this also looks like a stock that may
Speaker 1: be priced for perfection. Even during the war in Iran,
Speaker 1: the stock is trading close to all time highs again,
Speaker 1: even though hotels in the Middle East, many of them
Speaker 1: are near empty, even though consumers are facing pricier airfares,
Speaker 1: are facing higher fuel costs that are eating into their budgets.
Speaker 1: Right now, investors are positioned in hotel names as if
Speaker 1: that's not going to matter, as if there's going to
Speaker 1: be enough upside, especially from for example, higher income consumers,
Speaker 1: to wash all of that away. But we've started to
Speaker 1: see some weakness showing up, for example in outlooks from
Speaker 1: Hilton and elsewhere in travel from booking holdings. I think
Speaker 1: investors and analysts want to know whether Marriott's under some
Speaker 1: of that same pressure.
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with
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Speaker 2: making news on Wall Street and for the latest market
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