WEBVTT - Alphabet Rises, Apple Lower, Skechers Drops After Pulling Forecast

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

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<v Speaker 2>Stock Movers podcast, 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 at some stocks on the move today.

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<v Speaker 3>We're joined by Bloomberg's Christine. Christine, what are you looking

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<v Speaker 3>at here this morning?

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<v Speaker 1>Well, I'm also looking at alphabet Paul. I mean, Lisa

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<v Speaker 1>mentioned shares in a green there. But very interestingly, you

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<v Speaker 1>know that a sales and profit beat expectations that we

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<v Speaker 1>got from the results yesterday. That was really driven by advertising,

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<v Speaker 1>which isn't the most exciting part of their business, I'll

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<v Speaker 1>we say, right, and even the cloud business operating profit

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<v Speaker 1>more than two billion dollars that beat estimates too, But

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<v Speaker 1>it wasn't exactly the headline driver. And so you know,

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<v Speaker 1>my colleague Shibassion boyd Over at Markets Live pointing out

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<v Speaker 1>that what we really want to know is whether the

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<v Speaker 1>trade bar is driving up costs in the chip supply

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<v Speaker 1>chain right as it relates to Google's affected businesses or

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<v Speaker 1>Alphabets affected businesses, and to what extent those capacity constraints

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<v Speaker 1>in the data centers are limiting expansion. We didn't really

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<v Speaker 1>get a lot of steer from Alphabet on that.

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<v Speaker 4>Yeah, interesting because Alphabet doesn't I'm like, Alphabet, what's that company?

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<v Speaker 4>Google doesn't really give outlook either, so it was hard

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<v Speaker 4>to sort of understand what the what the future may

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<v Speaker 4>be for that company. But not a sidestep the ad revenue.

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<v Speaker 4>I mean, YouTube had eight point ninety two billion dollars

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<v Speaker 4>in revenue. That missed slightly, but that's a monster. And

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<v Speaker 4>now they have a podcasting that's apparently outpacing both Spotify

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<v Speaker 4>and Apple when it comes to people that are listening

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<v Speaker 4>like this is like a monster beast on that at

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<v Speaker 4>some point.

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<v Speaker 3>I mean, I if I were back in my banking days,

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<v Speaker 3>I'd be there every quarter pitching spin.

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<v Speaker 4>Spin off, spin off, its spin off.

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<v Speaker 3>Yeah, yep, let's get some value there. I'm going to

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<v Speaker 3>BNP parryba X say x saying the note just hit

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<v Speaker 3>my inbox. The analysts there maintained an app performance on Google,

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<v Speaker 3>raise the target price from two hundred and thirteen to

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<v Speaker 3>from two hundred and eight dollars on higher EPs estimates.

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<v Speaker 3>It looks like it's streetlights as well. What else? Christine?

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<v Speaker 1>Looking at Apple today, Paul, you know, we did get

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<v Speaker 1>a little bit of opening weakness there, but it's up

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<v Speaker 1>now just two tens of one percent at the moment,

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<v Speaker 1>and that is because we did get news earlier that

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<v Speaker 1>Apple is seeking to import most of its iPhones that

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<v Speaker 1>it sells in the US from India, which really accelerates

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<v Speaker 1>it shifts beyond China, and they're aiming to do that

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<v Speaker 1>by the end of next year, according to sources.

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<v Speaker 4>Telling Bloomer, Well, what's so interesting is that go ahead.

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<v Speaker 3>I just didn't think that was possible. Yeah, so that's

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<v Speaker 3>positive surprising news to me because I didn't think they

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<v Speaker 3>could shift that much production from China to India.

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<v Speaker 4>I also wonder, though, if they're going to hit the

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<v Speaker 4>Nike problem, which is Nike did that and then all

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<v Speaker 4>of a sudden there are tariffs on the places where

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<v Speaker 4>they went to go build new factories, and there will

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<v Speaker 4>be tariffs on India as well. So they're still not

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<v Speaker 4>building it in the US at the end of the day, Christine.

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<v Speaker 1>Yeah, absolutely, So they are still absolutely going to be

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<v Speaker 1>exposed to all those trade tensions that are brewing at

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<v Speaker 1>the moment. But you know, it does seem like perhaps

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<v Speaker 1>maybe Apple is banking on better relations between the US

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<v Speaker 1>and India as opposed to the US and China. You know, Paul,

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<v Speaker 1>to your point, that shift actually began years ago because

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<v Speaker 1>during the COVID lockdowns, obviously, Apple production of iPhones really

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<v Speaker 1>was hampered by what was going on in China, and

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<v Speaker 1>so they probably took a look at their supply chain

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<v Speaker 1>and think maybe we should start diversifying. So what we're

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<v Speaker 1>seeing now is just an acceleration of that.

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<v Speaker 4>Yeah. Interesting, All right, let's wrap it up here with Sketchers.

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<v Speaker 4>That stock is down almost three percent.

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<v Speaker 3>What happened?

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<v Speaker 1>Yeah, well, speaking of companies that are very exposed to

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<v Speaker 1>trade tensions, it is definitely very much related to what

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<v Speaker 1>we're seeing at the moments. Ketchers again saying that it

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<v Speaker 1>missed its estimates for the first quarter in terms of sales,

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<v Speaker 1>also by throwing its full yeer outlook, citing quote macroeconomic

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<v Speaker 1>uncertainty stemming from global trade policies. So you know, note

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<v Speaker 1>that Sketch does make a significant portion of its shoes

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<v Speaker 1>in China and Vietnams. Again, our supply chain problem very

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<v Speaker 1>much rearing its head here, and Sketchers chief financial officer

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<v Speaker 1>John Vandermore also compared what we're seeing now in terms

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<v Speaker 1>of the company's challenges to what they experienced during the

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<v Speaker 1>covid erangeline.

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<v Speaker 2>The Stock Movers podcast from Bloomberg Radio, check back with

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