WEBVTT - Lululemon Surges, Broadcom Slides, Tilray Brands Rise on Possible Trump Order

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

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

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<v Speaker 2>in the stock market. Harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at what's happening in the marketplace

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<v Speaker 3>today with stock Movers. We do that today Bloomberg's Emily, Emily,

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<v Speaker 3>what are you looking at?

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<v Speaker 4>Okay, So I'm looking at shares of Lululemon ticker Lulu.

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<v Speaker 4>Lulu up thirteen percent right now, the highest level since July.

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<v Speaker 4>After the company boosted its full year outlook and they

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<v Speaker 4>said that the CEO, Calvin McDonald's is going to be

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<v Speaker 4>stepping down after a period of sluggish growth. So the

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<v Speaker 4>stock had been down more than fifty percent through Thursday's close.

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<v Speaker 4>We got the news late yesterday about the CEO stepping down,

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<v Speaker 4>and now it's boosting the shares. And if you look

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<v Speaker 4>at like a chart here of the comp store sales

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<v Speaker 4>growth for Lululemon, it's been declining for at least the

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<v Speaker 4>last two year years. There's been rising competition in the

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<v Speaker 4>ath leisure space. It's not just Lululemon anymore. Which you

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<v Speaker 4>know those leggings are very expensive.

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<v Speaker 3>Yeah, there are a lot of other guys Lulu people.

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<v Speaker 1>No, not necessarily.

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<v Speaker 4>I will say this is not a you know, this

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<v Speaker 4>is not a tout for Lulu. But I will say

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<v Speaker 4>all of the Lulu products that I have hold up really.

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<v Speaker 2>Well, That's what I hear.

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<v Speaker 4>Yeah, so then you don't have to buy anymore. So

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<v Speaker 4>maybe that's why they're not selling as many leggings because

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<v Speaker 4>the probably you pay for it. Yeah, but I mean

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<v Speaker 4>there's just a lot of other ath leisure companies out there.

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<v Speaker 4>Athleta which their parent company is gap Alo, Worry Amazon.

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<v Speaker 3>I mean, we are there. I'm gonna say, like a

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<v Speaker 3>year ago, Derek Jeter came in here because he's doing

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<v Speaker 3>a partnership on the athleisure space with a guy from

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<v Speaker 3>the Untucked Shirt dude, And I go to Derek afterwards,

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<v Speaker 3>why are you doing this?

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<v Speaker 1>Man?

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<v Speaker 3>It's so competitive? Yeah, you're going to go up against

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<v Speaker 3>Nike And are you kidding me?

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<v Speaker 1>I don't know.

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<v Speaker 3>He's smarter than I. I guess we'll see how that

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<v Speaker 3>goes for us.

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<v Speaker 4>Okay, So I'm also watching shares of broadcom ticker AVGO.

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<v Speaker 4>It's down nine percent, the biggest decline since April. Lisa

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<v Speaker 4>Miteo was giving us the rundown, but I'll go through

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<v Speaker 4>it again. The chip company's sales outlook for AI computing

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<v Speaker 4>revenue missed expectations. The stock had run up quite a bit,

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<v Speaker 4>so the expectations were quite high going into the earnings,

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<v Speaker 4>and their CEO Howketon said just yesterday on a conference

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<v Speaker 4>call with analysts, the company has a backlog of seventy

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<v Speaker 4>three billion dollars in AI product orders that will be

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<v Speaker 4>shipped over the next six quarters. That doesn't sound like

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<v Speaker 4>a bad thing, but the number disappointed some investors here

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<v Speaker 4>that it just it wasn't quite enough. And people are

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<v Speaker 4>very sensitive right now when it comes to companies are

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<v Speaker 4>spending on AI, are they actually generating a profit and

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<v Speaker 4>how quickly can they generate that profit? So anything that

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<v Speaker 4>misses expectations, it feels like it really brings us stock down.

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<v Speaker 1>Yeah, sounds like Brockham was really just the victim of

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<v Speaker 1>really really high expectations. Even if it did well, it's

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<v Speaker 1>not good enough. Emily one where you look at cannabis

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<v Speaker 1>stocks today which are soaring high.

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<v Speaker 4>Yes, they are soaring much higher. Till Ray Brands is

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<v Speaker 4>one of those cannabis companies ticker tl r Y. It

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<v Speaker 4>was up as much as forty four percent on an

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<v Speaker 4>intra day basis. Now it's up about twenty six percent.

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<v Speaker 4>We have reporting out today that Trump is expected to

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<v Speaker 4>direct his administration to reclassify marijuana as a less dangerous drug.

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<v Speaker 4>This is big news because cannabis is currently label to

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<v Speaker 4>Schedule one drug up there with heroin and LSD. This

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<v Speaker 4>means that it's categorized as having no medical use, and

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<v Speaker 4>so Trump is weighing pushing it back to reclassifying it

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<v Speaker 4>as a Schedule too drug, which is seen in the

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<v Speaker 4>industry as something that would boost sales and be good.

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<v Speaker 4>But there was kind of news of this back in

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<v Speaker 4>August that Trump said he was going to reclassify it,

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<v Speaker 4>and there was a big move in the stocks, and

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<v Speaker 4>then it kind of reversed. So we'll see if he

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<v Speaker 4>actually makes this move in the stock gains.

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