WEBVTT - Week Ahead: Kroger, Carmax, and DraftKings 

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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 1>Let's take a look now at some stocks making news

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<v Speaker 1>in the week ahead. I'm Nathan Hager, joined by Bloomberg's

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<v Speaker 1>Judy Lagree, and we're looking forward to some more earnings

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<v Speaker 1>this week. We're going to hear from Kroger Thursday. Look

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<v Speaker 1>at it. What Bloomberg Intelligence has to say about the

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<v Speaker 1>grocery chain expectations here don't look too great, Judy.

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<v Speaker 3>That's right. Bloomberg Intelligence analysts are seeing that Kroger is

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<v Speaker 3>set for its weakest sales and profit growth of the year.

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<v Speaker 3>So I think for them it's really like the focus

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<v Speaker 3>on that is the same source sales growth, which is

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<v Speaker 3>expected to be the lowest since August twenty twenty four.

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<v Speaker 3>But Nathan, I have a question for you. Yeah, and

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<v Speaker 3>talk to me a little bit about how you think

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<v Speaker 3>about grocery shopping. Do you prefer to go in person?

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<v Speaker 3>Do you prefer to go through an app to get

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<v Speaker 3>your groceries delivery?

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<v Speaker 1>I go to the grocery store almost every day just

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<v Speaker 1>to fill up on like the one recipe that I

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<v Speaker 1>have to do every day. So yeah, I'm an in

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<v Speaker 1>store person.

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<v Speaker 2>Kind of okay.

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<v Speaker 3>Interesting, you know, I am here in Manhattan and I

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<v Speaker 3>miss going to the grocery store in person. I am

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<v Speaker 3>a transplant, and so I've had to adjust to you

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<v Speaker 3>getting delivery over going into the grocery store. But it

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<v Speaker 3>is an experience and I do like and miss that

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<v Speaker 3>experience greatly. Yeah.

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<v Speaker 1>Well, I mean these grocery stores, they still get the business,

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<v Speaker 1>you know, whether whether they're getting it delivered or not. Right,

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<v Speaker 1>But I mean, is it just same store sales alone

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<v Speaker 1>that are potentially going to be dragging Kroger's results down?

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<v Speaker 3>I mean, truly, for Kroger, it's a story of trying

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<v Speaker 3>to catch up to where the business is. And so

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<v Speaker 3>Kroger primarily is trying to spur growth in their grocery

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<v Speaker 3>business through their e commerce fulfillment. So that's through partnerships

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<v Speaker 3>with Instacart, the door Dash, with Uber Eats, and right

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<v Speaker 3>now they're really seeing that basically a lot of their

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<v Speaker 3>business is coming from people who are ordering delivery on

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<v Speaker 3>an increasing basis, and so in tandem with that, there

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<v Speaker 3>is for Croker a lot of thought into price cuts

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<v Speaker 3>and what that looks like for them as they compete

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<v Speaker 3>with other grocery store providers who deliver like Amazon, like Walmart,

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<v Speaker 3>And so one thing I was looking at was City

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<v Speaker 3>researchers really noting how vocal the CEO, Greg Foreman, what

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<v Speaker 3>foregn was in the press about price cuts on the

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<v Speaker 3>day that Walmart reported their earnings, and City ana Is

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<v Speaker 3>called that quote strange timing and not coincidental, which I liked,

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<v Speaker 3>you know, I thought that was really interesting and good

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<v Speaker 3>language to use. But they certainly perceived the talk about

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<v Speaker 3>price cuts as quote poking the bear.

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<v Speaker 1>Seriously, when you think about, you know, just how expensive

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<v Speaker 1>everything is right now. It's very top of mind for anybody,

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<v Speaker 1>whether they're going into the store or getting it by delivery.

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<v Speaker 1>But before we hear from Kroger on Thursday, we're going

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<v Speaker 1>to get some more earnings from Carmas on Wednesday. How's

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<v Speaker 1>the car market looking right now.

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<v Speaker 3>Judy, I mean, look, I think that there's a lot

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<v Speaker 3>going on, and the car market is a reflection of

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<v Speaker 3>what we're seeing in the economy. I think, really Carmas

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<v Speaker 3>is an interesting company stock earning result to watch because

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<v Speaker 3>used car sales are certainly on top of mind for

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<v Speaker 3>a lot of us in terms of it's read on

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<v Speaker 3>the consumer, it's read on affordability for used cars, auto credit,

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<v Speaker 3>whether the retail turnaround is actually working. I mean, there's

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<v Speaker 3>so many roads that lead to use car purchasing. So

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<v Speaker 3>at least for Carmacks, what we're looking at in terms

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<v Speaker 3>of the street and analysts, they're looking at and adjusted

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<v Speaker 3>earnings for share of about ninety seven cents, which is

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<v Speaker 3>down thirty percent from this time last year, and revenue

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<v Speaker 3>was also expected to be slightly lower year over year.

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<v Speaker 3>And so I think that is really sort of reflective

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<v Speaker 3>of where we're seeing used car sales just as an economy,

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<v Speaker 3>as a country, there's just strain there. And so as

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<v Speaker 3>a result, investors aren't really looking for blowout growth story here.

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<v Speaker 3>They're looking for evidence that the worst of this storm

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<v Speaker 3>in terms of really wavering and dropping used car interest

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<v Speaker 3>in sales, is starting to stabilize and sort of steady out.

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<v Speaker 3>As far as CarMax.

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<v Speaker 1>And well more stock, We're going to watch maybe for

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<v Speaker 1>the next few weeks here with the World Cup on

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<v Speaker 1>is draft kings. Do you think we're going to see

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<v Speaker 1>investors get a payoff from the tournament Judy.

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<v Speaker 3>Oh goodness, this is a really this is the crux

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<v Speaker 3>of the question here. I think it depends on a

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<v Speaker 3>number of things. It depends on whether the World Cup

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<v Speaker 3>will bring in more betters, more dollars waged, or more

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<v Speaker 3>repeat customers, and that is something that in my view,

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<v Speaker 3>remains to be seen. I think we'll have to sort

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<v Speaker 3>of understand what the handle or the total amount that

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<v Speaker 3>looks like as the World Cup gets underway, and whether

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<v Speaker 3>or not Draft Kings can turn this big event into

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<v Speaker 3>new users without spending too much on promotions, which I

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<v Speaker 3>think is really they're set up for that. Analyst Ian

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<v Speaker 3>Moore at Bernstein really pointed out Draft Kings as being

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<v Speaker 3>the clearest prediction market sports betting winner of the World Cup,

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<v Speaker 3>and I think those are really really strong words, and

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<v Speaker 3>for that, I think it's certainly something to watch from

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<v Speaker 3>a perspective of stock movement as it pertains to the

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<v Speaker 3>perception of the amount of betters who are jumping in

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<v Speaker 3>or even increasing their wagers as a result of the

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<v Speaker 3>World Cup.

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