WEBVTT - Week Ahead: Walt Disney, AMD, Marriott International 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg data.

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<v Speaker 3>Let's take a look now, add some stocks making news

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<v Speaker 3>in the week ahead. I'm Nathan Hager, joined by Bloomberg

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<v Speaker 3>Equities reporter Matthew Griffin with more earnings to stay on

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<v Speaker 3>top of this week, Matthew, maybe the biggest name that

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<v Speaker 3>we're looking at is the biggest name in entertainment, Walt Disney,

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<v Speaker 3>reporting earnings on Wednesday, the first one under the new CEO,

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<v Speaker 3>Josh Tomorrow, if I'm not mistaken, Is that right?

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<v Speaker 2>Yes?

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<v Speaker 1>And Nathan, I think that's going to put a lot

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<v Speaker 1>of focus on what the company says here, on the

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<v Speaker 1>questions that they take from analysts, and on what the

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<v Speaker 1>new CEO has to say. You do have relative optimism

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<v Speaker 1>among analysts who expect single digit growth in both adjusted

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<v Speaker 1>earnings per share and revenues. That's a dollar fifty one

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<v Speaker 1>in EA and nearly twenty five billion dollars in revenue.

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<v Speaker 1>But if you think about the news for this company

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<v Speaker 1>in recent months, a lot of it has again been

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<v Speaker 1>about what the company has to say so on the

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<v Speaker 1>financial side, you had to share sell off. After the

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<v Speaker 1>last earnings, Disney said they expected only modest growth in

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<v Speaker 1>the March quarter as they, for example, had trouble getting

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<v Speaker 1>international visitors to come to their parks. It's getting more

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<v Speaker 1>expensive to air live sports. Now under Josh Tomorrow's tenure,

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<v Speaker 1>you have this dust up with the Trump administration yet

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<v Speaker 1>again over Jimmy Kimmel. I think analysts are really going

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<v Speaker 1>to pepper this company with questions and are going to

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<v Speaker 1>be listening closely as our investors to what they have

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<v Speaker 1>to say.

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<v Speaker 3>I mean, what is the pressure on Tomorrow to outperform

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<v Speaker 3>given the stock performance so far this year?

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<v Speaker 1>Yes, you know, it's interesting. I do think investors had

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<v Speaker 1>some level of patients with Bob Iger, even though the

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<v Speaker 1>company wasn't necessarily seen as innovating or as growing to

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<v Speaker 1>the extent that people wanted. So he may have a

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<v Speaker 1>bit of runway, and he's making some moves. The company

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<v Speaker 1>does have plans to cut jobs in an attempt to

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<v Speaker 1>cut costs. But I do think there's going to be

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<v Speaker 1>an expectation eventually of better resultant, better stock performance than

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<v Speaker 1>Eiger delivered in his second tenure at the company. The

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<v Speaker 1>stock was up during his time as CEO, but badly

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<v Speaker 1>trailed the broader market.

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<v Speaker 3>All right, so that could be the marque event this week.

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<v Speaker 3>We hear from Disney on Wednesday, but before that, after

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<v Speaker 3>all the tech earnings we saw last week, we hear

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<v Speaker 3>from one more name in the chip space on Tuesday.

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<v Speaker 3>What are we looking for from Advanced micro Devices?

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<v Speaker 1>Well, Nathan, I think investors are going to be expecting

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<v Speaker 1>a lot from the chip maker. You have the shares

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<v Speaker 1>trading at all time highs, and if you think about

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<v Speaker 1>what we've seen in recent weeks, you had blockbuster outlooks

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<v Speaker 1>from Intel, from Texas Instruments, share reactions to match. Now

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<v Speaker 1>you've had the sort of hyper scaler technology. Companies such

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<v Speaker 1>as Meta raised their expectations for capital expenditures this year.

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<v Speaker 1>If you look at the actual numbers that analysts are

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<v Speaker 1>looking for, they're looking for just under nine point nine

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<v Speaker 1>billion dollars in revenue. That's in the range that AMD

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<v Speaker 1>gave when they last reported earnings. That being said, that

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<v Speaker 1>was seen as disappointing at the time, you had the

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<v Speaker 1>stock's steepest drop in years after that, and if you

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<v Speaker 1>look at the stock rally now, investors may be looking

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<v Speaker 1>for some upside there.

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<v Speaker 3>Yeah, I mean there's a lot of upside already with

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<v Speaker 3>this stock. It's been surging since the start of the year.

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<v Speaker 3>Is this almost a price to perfection moment for amd so?

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<v Speaker 1>Yes, this stock up sixty two percent year to date,

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<v Speaker 1>and it does feel like the entire semiconductor ecosystem is

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<v Speaker 1>price to perfection. You had the Philadelphia Semiconductor Index just

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<v Speaker 1>went on a record long winning streak. You just look, basically,

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<v Speaker 1>there's green across the board. And yet at the same time,

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<v Speaker 1>there are questions about the profitability of investments in artificial intelligence.

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<v Speaker 1>Investors just constantly have their eyes on that, and I

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<v Speaker 1>do think each individual company is going to be expected

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<v Speaker 1>to deliver something concrete for investors to chew on.

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<v Speaker 3>Also on Wednesday, we hear from Marriott International. Always curious

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<v Speaker 3>to see how travel names are doing given all that's

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<v Speaker 3>going on in geopolitics.

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<v Speaker 1>Yes, And the really interesting thing here with Marriott International

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<v Speaker 1>is that this also looks like a stock that may

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<v Speaker 1>be priced for perfection. Even during the war in Iran,

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<v Speaker 1>the stock is trading close to all time highs again,

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<v Speaker 1>even though hotels in the Middle East, many of them

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<v Speaker 1>are near empty, even though consumers are facing pricier airfares,

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<v Speaker 1>are facing higher fuel costs that are eating into their budgets.

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<v Speaker 1>Right now, investors are positioned in hotel names as if

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<v Speaker 1>that's not going to matter, as if there's going to

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<v Speaker 1>be enough upside, especially from for example, higher income consumers,

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<v Speaker 1>to wash all of that away. But we've started to

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<v Speaker 1>see some weakness showing up, for example in outlooks from

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<v Speaker 1>Hilton and elsewhere in travel from booking holdings. I think

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<v Speaker 1>investors and analysts want to know whether Marriott's under some

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<v Speaker 1>of that same pressure.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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