WEBVTT - Robinhood Drops; Avis Lower; Adidas Jump

0:00:02.520 --> 0:00:09.960
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. The Stock Movers Report,

0:00:10.280 --> 0:00:13.440
<v Speaker 1>your roundup of companies making moves in the stock market,

0:00:13.680 --> 0:00:18.160
<v Speaker 1>harnessing the power of Bloomberg Data. It's a podcast, Stockmovers

0:00:18.239 --> 0:00:19.439
<v Speaker 1>Alexis Christophers.

0:00:19.600 --> 0:00:22.640
<v Speaker 2>Are you all mag seven today or do you digress?

0:00:22.840 --> 0:00:24.840
<v Speaker 3>I digress because we've got a lot of the mags,

0:00:25.040 --> 0:00:26.520
<v Speaker 3>but we're going to hear a lot about them after

0:00:26.520 --> 0:00:28.480
<v Speaker 3>the closing bell, So I'm going to start out with

0:00:28.720 --> 0:00:32.800
<v Speaker 3>robin Hood. Not a great day for the online brokerage.

0:00:32.840 --> 0:00:36.440
<v Speaker 3>The stock is down about twelve percent. It missed earnings

0:00:36.479 --> 0:00:39.840
<v Speaker 3>and revenue estimates for the first quarter. The company did

0:00:39.960 --> 0:00:43.560
<v Speaker 3>raise its twenty twenty six expense guidance. It now says

0:00:43.640 --> 0:00:48.400
<v Speaker 3>it anticipates investing another one hundred million dollars to build

0:00:48.479 --> 0:00:53.360
<v Speaker 3>and support the user interface for those Trump accounts. So Robinhood,

0:00:53.400 --> 0:00:55.960
<v Speaker 3>along with a Bank of New York Mellon, were tapped

0:00:56.000 --> 0:00:58.360
<v Speaker 3>to help manage these accounts that have created for children

0:00:58.640 --> 0:01:01.560
<v Speaker 3>as part of President Trump's One Big, Beautiful Bill Act.

0:01:02.080 --> 0:01:05.240
<v Speaker 3>Robin Hood is also serving as the brokerage and initial

0:01:05.440 --> 0:01:09.880
<v Speaker 3>trustee for that. But in addition, earnings actually beat the

0:01:09.920 --> 0:01:12.479
<v Speaker 3>street at robin Hood because it made a bigger push

0:01:12.800 --> 0:01:15.720
<v Speaker 3>into the prediction markets, and apparently that is doing quite

0:01:15.760 --> 0:01:17.759
<v Speaker 3>well for Robinhood overall.

0:01:18.880 --> 0:01:21.480
<v Speaker 2>I mean, interrupt, this is a big deal. What does

0:01:21.560 --> 0:01:22.920
<v Speaker 2>prediction markets mean?

0:01:23.040 --> 0:01:24.800
<v Speaker 3>Is that just like saying Betty, I think.

0:01:26.160 --> 0:01:29.360
<v Speaker 2>Yes, no, I asked questions, you know, should be above

0:01:29.400 --> 0:01:31.160
<v Speaker 2>seventy two degrees today?

0:01:31.240 --> 0:01:31.440
<v Speaker 1>Yes?

0:01:31.480 --> 0:01:34.479
<v Speaker 2>No? Is it different than gambling? Well, that's the that's

0:01:34.520 --> 0:01:36.720
<v Speaker 2>the question that certain states say it is not.

0:01:37.160 --> 0:01:37.360
<v Speaker 1>You know.

0:01:38.000 --> 0:01:39.479
<v Speaker 2>So next, all.

0:01:39.440 --> 0:01:42.040
<v Speaker 3>Right, Avis, have you been fought? We haven't really talked

0:01:42.040 --> 0:01:44.840
<v Speaker 3>about this, but it's one of the most shorted stocks

0:01:44.840 --> 0:01:48.760
<v Speaker 3>of the year. Uh parsipany New Jersey based Paul company.

0:01:49.240 --> 0:01:52.800
<v Speaker 3>So shares of Avis Budget Group falling here sharply after

0:01:52.800 --> 0:01:55.920
<v Speaker 3>the car rental company reported deeper losses than expected in

0:01:55.960 --> 0:01:58.360
<v Speaker 3>the first quarter, and it continues to deal with the

0:01:58.360 --> 0:02:01.600
<v Speaker 3>aftermath of this bizarre short squeeze where we saw the

0:02:01.720 --> 0:02:06.000
<v Speaker 3>stock plummet seventy percent in just two days. So we've

0:02:06.000 --> 0:02:08.280
<v Speaker 3>been seeing this stock sort of on a sugar high.

0:02:08.400 --> 0:02:11.200
<v Speaker 3>It experienced that earlier this month, and now the stock

0:02:11.280 --> 0:02:14.640
<v Speaker 3>has really been been plummeting. And also remember it's behind

0:02:14.680 --> 0:02:17.480
<v Speaker 3>brands like Zip Car and Budget Truck Rentals, so it's

0:02:17.480 --> 0:02:21.959
<v Speaker 3>not just Avis, we go to surveillance car rental correspondent

0:02:22.000 --> 0:02:24.480
<v Speaker 3>Paul Sweeney or every time I go, I think I'm

0:02:24.480 --> 0:02:25.880
<v Speaker 3>getting taken to the cleaners?

0:02:25.919 --> 0:02:30.120
<v Speaker 2>Do you find car rentals like fair? I'm a Hurtz

0:02:30.320 --> 0:02:33.160
<v Speaker 2>person and they take care of me pretty well. But

0:02:33.560 --> 0:02:35.840
<v Speaker 2>you look at the bill, and like a hotel bill,

0:02:36.160 --> 0:02:39.160
<v Speaker 2>it's got twenty seven different exs on there and fees

0:02:39.200 --> 0:02:40.639
<v Speaker 2>and this and that, and I don't get So I

0:02:40.840 --> 0:02:43.320
<v Speaker 2>was asked, like, how does Florida not have a staate

0:02:43.320 --> 0:02:45.679
<v Speaker 2>income tax? Because they go look at your bill the

0:02:45.720 --> 0:02:47.440
<v Speaker 2>next time you check out a hotel in Florida. Really,

0:02:47.560 --> 0:02:48.280
<v Speaker 2>that's how they get you.

0:02:48.800 --> 0:02:51.480
<v Speaker 3>Yeah, they's supposed to be more transparency. Wasn't there a

0:02:51.760 --> 0:02:56.080
<v Speaker 3>legislation transparent? Do you do you like just taking an

0:02:56.160 --> 0:02:56.720
<v Speaker 3>uber more?

0:02:58.760 --> 0:03:01.880
<v Speaker 2>I do? I do? But then I took the when

0:03:01.880 --> 0:03:03.520
<v Speaker 2>I was last house in Santa Clair, I took the

0:03:04.560 --> 0:03:06.000
<v Speaker 2>what is it the waymoth thing?

0:03:06.639 --> 0:03:08.640
<v Speaker 3>Oh no, driver's scary.

0:03:08.760 --> 0:03:10.720
<v Speaker 2>Yeah, went to the in and out burger and back.

0:03:11.080 --> 0:03:17.240
<v Speaker 2>So that's how how California is that California? Yeah, that's

0:03:17.240 --> 0:03:19.040
<v Speaker 2>how they roll out. And I wasn't dealing one. Do

0:03:19.040 --> 0:03:20.160
<v Speaker 2>you want to squeeze in one more?

0:03:20.360 --> 0:03:25.040
<v Speaker 3>Yeah? Let's do. Adidas reporting upbeat first quarter results. Look,

0:03:25.080 --> 0:03:28.280
<v Speaker 3>it's getting a big, big help here from the World Cup, right,

0:03:28.280 --> 0:03:33.239
<v Speaker 3>which is starting June eleven sponsors men's national teams, including

0:03:33.360 --> 0:03:37.960
<v Speaker 3>the defending champs Argentina Spain. So also it's just it's

0:03:38.040 --> 0:03:40.640
<v Speaker 3>running shoes are doing well, it's training products are doing well.

0:03:40.960 --> 0:03:44.320
<v Speaker 3>Posted double digit growth in every market except Europe. The

0:03:44.320 --> 0:03:46.520
<v Speaker 3>stronger euro posed a bit of a challenge there, and

0:03:46.560 --> 0:03:49.480
<v Speaker 3>of course they're also dealing with the terraffs, the US tariffs.

0:03:49.480 --> 0:03:52.600
<v Speaker 3>But those fashion oriented, they were the retro sneakers. I

0:03:52.640 --> 0:03:55.119
<v Speaker 3>know my kids were all around them. The samba. There's

0:03:55.240 --> 0:03:56.160
<v Speaker 3>no one that doesn't.

0:03:57.080 --> 0:04:00.400
<v Speaker 2>Do you have a pair. I after thought, I got

0:04:00.600 --> 0:04:01.960
<v Speaker 2>a pair of the Congress.

0:04:02.040 --> 0:04:06.160
<v Speaker 3>You're gonna get your pair of sambas. Yeah, I'm very embarrassed,

0:04:06.480 --> 0:04:07.440
<v Speaker 3>but maybe maybe.

0:04:07.240 --> 0:04:12.680
<v Speaker 1>It'll worry The stock movers report from Bloomberg Radio. Check

0:04:12.720 --> 0:04:15.080
<v Speaker 1>back with us throughout the day for the latest roundup

0:04:15.080 --> 0:04:18.039
<v Speaker 1>of companies making news on Wall Street and for the

0:04:18.120 --> 0:04:22.560
<v Speaker 1>latest market moving headlines. Listen to Bloomberg Radio Live, catch

0:04:22.600 --> 0:04:26.120
<v Speaker 1>us on YouTube, Bloomberg dot com, and on Applecarplay and

0:04:26.120 --> 0:04:28.520
<v Speaker 1>Android Auto with the Bloomberg Business app.