Speaker 1: Bloomberg Audio Studios, podcasts, radio news. The Stock Movers Report,
Speaker 1: your roundup of companies making moves in the stock market,
Speaker 1: harnessing the power of Bloomberg Data.
Speaker 2: Let's take a look at some stocks on the move today.
Speaker 2: I'm Nathan Hager, joined by Bloomberg's Isabelle Lee. On a
Speaker 2: positive morning for the broader market, but not so for
Speaker 2: the latest companies to report earnings, including Nike. A big
Speaker 2: swush to the downside is a bel good morning.
Speaker 3: Definitely a big swush, down by almost ten percent in
Speaker 3: pre market trading. So the company said it expects revenue
Speaker 3: for the fourth quarter to be down some two to
Speaker 3: four percent and it will be lower in the low
Speaker 3: digits for the rest of the calendar year. So this
Speaker 3: is actually very surprisingly gloomy. It's an outlook that I
Speaker 3: think surprised a lot of analysts because Nike has been
Speaker 3: trying to regain market dominance after a sales slump, but
Speaker 3: now it's facing a lot of challenges, and of course
Speaker 3: it's really hard to ignore the in the Middle East,
Speaker 3: and they did say that, they said the company is
Speaker 3: seeing a lot of inventories in Europe and the Middle East,
Speaker 3: and of course you have the traffic disruption from the war,
Speaker 3: so that could lead to more volatility in the business.
Speaker 3: So even if we saw really strong results in North America,
Speaker 3: of course we know that it was the holidays a
Speaker 3: lot of people shop. Those challenges in the Middle East
Speaker 3: as well as the weakness, the continued weakness in China
Speaker 3: really overshadowed the strong results we saw in North American
Speaker 3: region and through to this Clothes the stock has dropped
Speaker 3: some seventeen percent this year. The ten around plan really
Speaker 3: is taking longer than originally planned, especially under the CEO
Speaker 3: Elliott Hills.
Speaker 2: Yeah, longer than a lot of investors were really hoping for.
Speaker 2: With Elliott Hill returning to the helmet Nike and even
Speaker 2: bigger decline this morning for our Ah the furniture maker.
Speaker 3: I know we're really getting gloomy. Here are a run
Speaker 3: almost twenty percent. This is a home furnishing company. The
Speaker 3: revenue forecast for the first quarter missed the average estimates
Speaker 3: are saying that the forecast is pressured by execution and
Speaker 3: again supply chain disruptions. It's giving us flashback to the
Speaker 3: COVID days. Bloomberg Intelligence analysts Lindsay Dutch saying that the
Speaker 3: outlook for our Age is for a two to four
Speaker 3: percent decline in the first quarter for revenue, and that's
Speaker 3: after following a fourth quarter miss. So this point is
Speaker 3: really just a sharp job in demand that could extend
Speaker 3: beyond the first quarter. And we saw actually a couple
Speaker 3: of price cuts from Stifo and Barclays. It's not looking
Speaker 3: good for our Age and it looks to be It
Speaker 3: looks to point to an open and the reds for
Speaker 3: our Age. Well.
Speaker 2: Of course, on a mostly positive morning, we got to
Speaker 2: talk about some stocks in the green. One of those
Speaker 2: includes the Walt Disney Company.
Speaker 1: Of all companies, isn't well.
Speaker 3: We have to end it on a positive note, be
Speaker 3: trying to be positive. Walt Disney tick our Ds. The
Speaker 3: stock is up some one and a half percent in
Speaker 3: pre market rate. We have Raymond Jims upgrading the stock
Speaker 3: to outperform from market perform. They really just cited an
Speaker 3: attractive entry point for the stock. So the analyst there
Speaker 3: said that the current macro backdrop and international visitation headwinds
Speaker 3: are the reasons for this. It's an opportunity to opportunity
Speaker 3: to invest at an attractive valuation. So they set the
Speaker 3: price target to one hundred and fifteen dollars per share.
Speaker 3: In related news, Disneyland Paris unbuilt an expansion dedicated to
Speaker 3: the world of Frozen. So this is no princess that
Speaker 3: a lot of kids love. This is a key part
Speaker 3: of really a billion dollar effort to boost visits at
Speaker 3: the Team Park, which is really facing intense competition in Europe.
Speaker 3: And so Na said, how many steam parks do you
Speaker 3: think Disney has?
Speaker 1: Oh, you're going to.
Speaker 2: Put me on a trivia course to agree. I'm going
Speaker 2: to go with ten.
Speaker 3: Okay, there are six independent operated Disney Resorts locations, but
Speaker 3: twelve individual steam parks. Wow, friend lead missions to try
Speaker 3: to go to all the parks in.
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