Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look now at some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg's
Speaker 1: Judy Lagree, and we're looking forward to some more earnings
Speaker 1: this week. We're going to hear from Kroger Thursday. Look
Speaker 1: at it. What Bloomberg Intelligence has to say about the
Speaker 1: grocery chain expectations here don't look too great, Judy.
Speaker 3: That's right. Bloomberg Intelligence analysts are seeing that Kroger is
Speaker 3: set for its weakest sales and profit growth of the year.
Speaker 3: So I think for them it's really like the focus
Speaker 3: on that is the same source sales growth, which is
Speaker 3: expected to be the lowest since August twenty twenty four.
Speaker 3: But Nathan, I have a question for you. Yeah, and
Speaker 3: talk to me a little bit about how you think
Speaker 3: about grocery shopping. Do you prefer to go in person?
Speaker 3: Do you prefer to go through an app to get
Speaker 3: your groceries delivery?
Speaker 1: I go to the grocery store almost every day just
Speaker 1: to fill up on like the one recipe that I
Speaker 1: have to do every day. So yeah, I'm an in
Speaker 1: store person.
Speaker 2: Kind of okay.
Speaker 3: Interesting, you know, I am here in Manhattan and I
Speaker 3: miss going to the grocery store in person. I am
Speaker 3: a transplant, and so I've had to adjust to you
Speaker 3: getting delivery over going into the grocery store. But it
Speaker 3: is an experience and I do like and miss that
Speaker 3: experience greatly. Yeah.
Speaker 1: Well, I mean these grocery stores, they still get the business,
Speaker 1: you know, whether whether they're getting it delivered or not. Right,
Speaker 1: But I mean, is it just same store sales alone
Speaker 1: that are potentially going to be dragging Kroger's results down?
Speaker 3: I mean, truly, for Kroger, it's a story of trying
Speaker 3: to catch up to where the business is. And so
Speaker 3: Kroger primarily is trying to spur growth in their grocery
Speaker 3: business through their e commerce fulfillment. So that's through partnerships
Speaker 3: with Instacart, the door Dash, with Uber Eats, and right
Speaker 3: now they're really seeing that basically a lot of their
Speaker 3: business is coming from people who are ordering delivery on
Speaker 3: an increasing basis, and so in tandem with that, there
Speaker 3: is for Croker a lot of thought into price cuts
Speaker 3: and what that looks like for them as they compete
Speaker 3: with other grocery store providers who deliver like Amazon, like Walmart,
Speaker 3: And so one thing I was looking at was City
Speaker 3: researchers really noting how vocal the CEO, Greg Foreman, what
Speaker 3: foregn was in the press about price cuts on the
Speaker 3: day that Walmart reported their earnings, and City ana Is
Speaker 3: called that quote strange timing and not coincidental, which I liked,
Speaker 3: you know, I thought that was really interesting and good
Speaker 3: language to use. But they certainly perceived the talk about
Speaker 3: price cuts as quote poking the bear.
Speaker 1: Seriously, when you think about, you know, just how expensive
Speaker 1: everything is right now. It's very top of mind for anybody,
Speaker 1: whether they're going into the store or getting it by delivery.
Speaker 1: But before we hear from Kroger on Thursday, we're going
Speaker 1: to get some more earnings from Carmas on Wednesday. How's
Speaker 1: the car market looking right now.
Speaker 3: Judy, I mean, look, I think that there's a lot
Speaker 3: going on, and the car market is a reflection of
Speaker 3: what we're seeing in the economy. I think, really Carmas
Speaker 3: is an interesting company stock earning result to watch because
Speaker 3: used car sales are certainly on top of mind for
Speaker 3: a lot of us in terms of it's read on
Speaker 3: the consumer, it's read on affordability for used cars, auto credit,
Speaker 3: whether the retail turnaround is actually working. I mean, there's
Speaker 3: so many roads that lead to use car purchasing. So
Speaker 3: at least for Carmacks, what we're looking at in terms
Speaker 3: of the street and analysts, they're looking at and adjusted
Speaker 3: earnings for share of about ninety seven cents, which is
Speaker 3: down thirty percent from this time last year, and revenue
Speaker 3: was also expected to be slightly lower year over year.
Speaker 3: And so I think that is really sort of reflective
Speaker 3: of where we're seeing used car sales just as an economy,
Speaker 3: as a country, there's just strain there. And so as
Speaker 3: a result, investors aren't really looking for blowout growth story here.
Speaker 3: They're looking for evidence that the worst of this storm
Speaker 3: in terms of really wavering and dropping used car interest
Speaker 3: in sales, is starting to stabilize and sort of steady out.
Speaker 3: As far as CarMax.
Speaker 1: And well more stock, We're going to watch maybe for
Speaker 1: the next few weeks here with the World Cup on
Speaker 1: is draft kings. Do you think we're going to see
Speaker 1: investors get a payoff from the tournament Judy.
Speaker 3: Oh goodness, this is a really this is the crux
Speaker 3: of the question here. I think it depends on a
Speaker 3: number of things. It depends on whether the World Cup
Speaker 3: will bring in more betters, more dollars waged, or more
Speaker 3: repeat customers, and that is something that in my view,
Speaker 3: remains to be seen. I think we'll have to sort
Speaker 3: of understand what the handle or the total amount that
Speaker 3: looks like as the World Cup gets underway, and whether
Speaker 3: or not Draft Kings can turn this big event into
Speaker 3: new users without spending too much on promotions, which I
Speaker 3: think is really they're set up for that. Analyst Ian
Speaker 3: Moore at Bernstein really pointed out Draft Kings as being
Speaker 3: the clearest prediction market sports betting winner of the World Cup,
Speaker 3: and I think those are really really strong words, and
Speaker 3: for that, I think it's certainly something to watch from
Speaker 3: a perspective of stock movement as it pertains to the
Speaker 3: perception of the amount of betters who are jumping in
Speaker 3: or even increasing their wagers as a result of the
Speaker 3: World Cup.
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