WEBVTT - Alphabet Soars, Qualcomm Rallies, Pershing Square Rises After Bill Ackman Bought Shares in First Trading Day

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:16.480
<v Speaker 2>in the stock market harnessing the power of Bloomberg data.

0:00:16.680 --> 0:00:18.079
<v Speaker 3>Let's take a look at some of these stocks on

0:00:18.120 --> 0:00:20.599
<v Speaker 3>the move today. We can do that with Bloomberg, Bailly Lipscholtz, Billy.

0:00:20.600 --> 0:00:21.360
<v Speaker 3>What are you looking at today?

0:00:21.520 --> 0:00:23.840
<v Speaker 1>Yeah, looking at at least one of the big mag

0:00:23.920 --> 0:00:26.880
<v Speaker 1>seven names in Alphabet or Google as I like to

0:00:26.880 --> 0:00:29.840
<v Speaker 1>call it, ticker Googl right now at more than six percent,

0:00:29.880 --> 0:00:33.360
<v Speaker 1>trading at a record high. This came after beating expectations

0:00:33.560 --> 0:00:35.320
<v Speaker 1>in the first quarter. Of the big things that stood out,

0:00:35.360 --> 0:00:38.280
<v Speaker 1>according to the Wall Street analyst, search was very strong,

0:00:38.360 --> 0:00:41.120
<v Speaker 1>AI kind of delivering for their search unit, as well

0:00:41.120 --> 0:00:44.000
<v Speaker 1>as Cloud being a standout for the quarter, a year

0:00:44.040 --> 0:00:48.280
<v Speaker 1>over year growth on the cloud accelerating to sixty three percent,

0:00:48.400 --> 0:00:51.479
<v Speaker 1>and then looking at their backlog nearly doubling sequentially to

0:00:51.520 --> 0:00:54.400
<v Speaker 1>over four hundred and sixty billion dollars. So really firing

0:00:54.400 --> 0:00:57.760
<v Speaker 1>on all cylinders and we're sifting through, as you mentioned, Paul,

0:00:57.800 --> 0:01:01.880
<v Speaker 1>a number of big tech earnings. Definitely Alphabet standing out

0:01:01.880 --> 0:01:02.640
<v Speaker 1>so far this morning.

0:01:02.720 --> 0:01:04.959
<v Speaker 4>Yeah, the big winner of the four mag seven names

0:01:04.959 --> 0:01:07.200
<v Speaker 4>that did report. Outside of the mag seven names, you

0:01:07.200 --> 0:01:08.399
<v Speaker 4>also had Qualcom reporting.

0:01:08.560 --> 0:01:12.640
<v Speaker 1>Yeah, Qualcom reporting Take your q Com right now, up

0:01:12.680 --> 0:01:16.240
<v Speaker 1>more than twelve percent. That's the biggest gain since April,

0:01:16.319 --> 0:01:18.960
<v Speaker 1>but also really trading at the highest level in more

0:01:19.000 --> 0:01:21.760
<v Speaker 1>than three and a half months. This came after partly

0:01:22.080 --> 0:01:25.160
<v Speaker 1>the company beating expectations, but also disclosing that they're making

0:01:25.319 --> 0:01:29.200
<v Speaker 1>headway in the lucrative data center market and also leaning

0:01:29.280 --> 0:01:31.000
<v Speaker 1>into China. The big thing to keep in mind with

0:01:31.040 --> 0:01:33.040
<v Speaker 1>Qualcom is there's been a lot of pressure and back

0:01:33.040 --> 0:01:35.720
<v Speaker 1>and forth on the smartphone sector and what that means

0:01:35.720 --> 0:01:38.920
<v Speaker 1>with the iPhone as well as some of the Android devices.

0:01:38.920 --> 0:01:42.520
<v Speaker 1>But the company leaning into data centers is certainly something

0:01:42.520 --> 0:01:45.440
<v Speaker 1>that kind of perked the ears or caught people's I

0:01:45.440 --> 0:01:47.360
<v Speaker 1>guess eyes and ears when they were talking about the

0:01:47.360 --> 0:01:50.240
<v Speaker 1>potential demand there. And obviously we're talking about a memory

0:01:50.280 --> 0:01:52.840
<v Speaker 1>crunch with so many of these AI data centers being

0:01:52.920 --> 0:01:56.120
<v Speaker 1>built out, so Qualcom kind of shifting away to produce

0:01:56.560 --> 0:01:59.040
<v Speaker 1>fewer smartphones and leaning into that, leading that to a

0:01:59.120 --> 0:02:01.360
<v Speaker 1>be a big gainer on the day, But again, all

0:02:01.360 --> 0:02:04.320
<v Speaker 1>things considered, not really standing out against most of its peers.

0:02:05.120 --> 0:02:09.120
<v Speaker 3>Pershing Square went public yesterday, kind of a rough first

0:02:09.160 --> 0:02:11.760
<v Speaker 3>day of trading, but bouncing back a little bit today, rough.

0:02:11.560 --> 0:02:14.280
<v Speaker 1>First day of trading. And we're looking right now at

0:02:14.520 --> 0:02:18.280
<v Speaker 1>Pershing Square proper ticker PS. This is the management company,

0:02:18.840 --> 0:02:21.000
<v Speaker 1>not the closed end fund, though they're both rallying, but

0:02:21.240 --> 0:02:24.080
<v Speaker 1>Pershing Square ticker PS right now up seventeen percent, trading

0:02:24.080 --> 0:02:26.960
<v Speaker 1>around twenty eight dollars, So that is the asset management company.

0:02:27.120 --> 0:02:29.160
<v Speaker 1>And the gains for both the closed end fund and

0:02:28.880 --> 0:02:32.320
<v Speaker 1>the asset manager came after Ackman took to x saying

0:02:32.360 --> 0:02:34.519
<v Speaker 1>that he bought five hundred thousand shares in the open

0:02:34.560 --> 0:02:36.519
<v Speaker 1>market of the closed end fund and eight hundred thousand

0:02:36.520 --> 0:02:39.760
<v Speaker 1>shares of the management fund yesterday in the open market.

0:02:39.919 --> 0:02:42.440
<v Speaker 1>Our math means that he's spent close to forty million

0:02:42.480 --> 0:02:45.400
<v Speaker 1>dollars on those purchases. But again, this is kind of

0:02:45.480 --> 0:02:48.400
<v Speaker 1>an interesting deal. So if you're investing in ps you're

0:02:48.440 --> 0:02:51.040
<v Speaker 1>betting on the actual company. That'll be compared to some

0:02:51.080 --> 0:02:53.680
<v Speaker 1>of the other asset managers. If you're betting on ps US,

0:02:53.960 --> 0:02:58.080
<v Speaker 1>you're essentially getting exposure to his underlying fund if you will.

0:02:58.520 --> 0:03:01.440
<v Speaker 4>Is that unusual for him to jump been and support

0:03:01.800 --> 0:03:03.200
<v Speaker 4>the shares like that in the first trading deck.

0:03:03.320 --> 0:03:05.320
<v Speaker 1>I don't think we normally would see that. I think

0:03:05.360 --> 0:03:09.120
<v Speaker 1>most people would say that most insiders aren't forced to buy.

0:03:09.280 --> 0:03:11.360
<v Speaker 1>And obviously it caused a lot of headlines yesterday the

0:03:11.360 --> 0:03:13.760
<v Speaker 1>closed end fund trading down eighteen percent, But you have

0:03:13.800 --> 0:03:16.000
<v Speaker 1>to keep in mind that because of the bonus share

0:03:16.040 --> 0:03:18.359
<v Speaker 1>as they framed it, of the management company, the losses

0:03:18.360 --> 0:03:20.440
<v Speaker 1>were closer to nine percent. But that's still not a

0:03:20.480 --> 0:03:23.040
<v Speaker 1>really what you want to see in a public listing,

0:03:23.040 --> 0:03:25.120
<v Speaker 1>public debut. You normally want to see a bigger pop

0:03:25.160 --> 0:03:27.480
<v Speaker 1>and not a nine percent net loss for people who

0:03:27.480 --> 0:03:28.160
<v Speaker 1>bought and held on.

0:03:29.280 --> 0:03:31.760
<v Speaker 3>You do the math. You did the math, Do the math.

0:03:31.880 --> 0:03:33.720
<v Speaker 1>Someone's got to do it. Now this one is doing it.

0:03:33.760 --> 0:03:35.680
<v Speaker 1>But yeah, so, I mean, the other interesting thing is

0:03:36.080 --> 0:03:38.760
<v Speaker 1>pershing proper. Right around twenty five bucks is where they

0:03:38.760 --> 0:03:40.440
<v Speaker 1>were valued at when they were valued at ten billion

0:03:40.480 --> 0:03:42.200
<v Speaker 1>dollars in their private deal a few years ago. So

0:03:42.480 --> 0:03:44.760
<v Speaker 1>twenty eight dollars right now is where it's trading. So

0:03:44.800 --> 0:03:47.000
<v Speaker 1>a bit of a premium to that last round. But again,

0:03:47.000 --> 0:03:49.200
<v Speaker 1>when you're head of the company has to take to

0:03:49.760 --> 0:03:51.840
<v Speaker 1>buying in the open market and promoting it and talking

0:03:51.840 --> 0:03:54.320
<v Speaker 1>about doing as Space is on Twitter with the CIO.

0:03:54.600 --> 0:03:57.480
<v Speaker 1>It's normally not what you would see when companies like

0:03:57.520 --> 0:03:58.160
<v Speaker 1>this go public.

0:03:58.200 --> 0:04:00.680
<v Speaker 4>Okay, so he's got two. He's listed on the New

0:04:00.720 --> 0:04:02.560
<v Speaker 4>York Stock Exchange of one in the UK.

0:04:02.720 --> 0:04:05.560
<v Speaker 1>Is that right? Yeah, he's there. So ps US is

0:04:05.560 --> 0:04:08.360
<v Speaker 1>the US closed end fund that is going to mirror

0:04:08.480 --> 0:04:12.240
<v Speaker 1>the European listage closed end fund. European closed end fund

0:04:12.240 --> 0:04:14.760
<v Speaker 1>trades at about a thirty percent discount to net asset

0:04:14.840 --> 0:04:17.920
<v Speaker 1>value after yesterday's close. The US listed one was called

0:04:17.920 --> 0:04:20.000
<v Speaker 1>it seventeen ish, and that was kind of his whole

0:04:20.000 --> 0:04:23.080
<v Speaker 1>pitch was you're buying You're essentially buying things at a discountant,

0:04:23.279 --> 0:04:25.760
<v Speaker 1>and their view this is something that should trade in

0:04:25.760 --> 0:04:28.880
<v Speaker 1>the long run at a premium, but that doesn't happen normally.

0:04:30.120 --> 0:04:34.160
<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

0:04:34.240 --> 0:04:36.839
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:36.880 --> 0:04:40.000
<v Speaker 2>making news on Wall Street and for the latest market

0:04:40.040 --> 0:04:44.480
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:44.560 --> 0:04:48.080
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:48.160 --> 0:04:49.640
<v Speaker 2>the Bloomberg Business app.