1 00:00:02,560 --> 00:00:10,560 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, the Stock Movers podcast. 2 00:00:12,119 --> 00:00:14,880 Speaker 1: This is your roundup of companies making news on Wall 3 00:00:14,920 --> 00:00:19,120 Speaker 1: Street and beyond, harnessing the power of Bloomberg data. 4 00:00:19,880 --> 00:00:22,119 Speaker 2: Right now, let's take a look at some stocks they're 5 00:00:22,160 --> 00:00:26,080 Speaker 2: on the move today. We're joined by Bloomberg's in Bloomberg 6 00:00:26,160 --> 00:00:27,520 Speaker 2: Surveillance is Lisa Matteo. 7 00:00:27,640 --> 00:00:30,639 Speaker 3: Lisa, We'll start with General Motors because they did have 8 00:00:30,680 --> 00:00:33,760 Speaker 3: earnings out so shares are down about three percent. It's 9 00:00:33,800 --> 00:00:37,280 Speaker 3: second quarter profit fell President Trump's tariffs. We're going to 10 00:00:37,320 --> 00:00:40,479 Speaker 3: add one point one billion dollars in costs, that's what 11 00:00:40,520 --> 00:00:43,200 Speaker 3: the company's saying. But the profits also took it from 12 00:00:43,280 --> 00:00:45,640 Speaker 3: higher warranty costs. Also, they have a build up of 13 00:00:45,680 --> 00:00:48,720 Speaker 3: inventory of electric vehicles that's an issue for them. So 14 00:00:48,880 --> 00:00:51,120 Speaker 3: NETT it comes to climb thirty five percent to one 15 00:00:51,120 --> 00:00:53,680 Speaker 3: point nine billion. But it just shows like the tough 16 00:00:53,680 --> 00:00:56,480 Speaker 3: time these automakers are facing with, you know, profits under 17 00:00:56,480 --> 00:00:59,800 Speaker 3: pressure of the President's tariffs. We heard it from Stelantis yesterday. 18 00:00:59,800 --> 00:01:03,000 Speaker 3: They talked about it. CEO Mary Baris, she hint about 19 00:01:03,040 --> 00:01:05,839 Speaker 3: it in a letter to shareholders. And then you remember 20 00:01:05,840 --> 00:01:07,280 Speaker 3: back in June the company said he was going to 21 00:01:07,280 --> 00:01:11,320 Speaker 3: shift some production from the US to Mexico. But despite 22 00:01:11,400 --> 00:01:14,360 Speaker 3: the higher tiers, they did grow their US vehicle sales 23 00:01:14,400 --> 00:01:18,000 Speaker 3: in the quarter. There were some non teriff related costs 24 00:01:18,000 --> 00:01:20,800 Speaker 3: to for the company. They had the recall six hundred 25 00:01:20,840 --> 00:01:23,560 Speaker 3: thousand trucks that's about a three hundred million dollars in 26 00:01:23,640 --> 00:01:26,240 Speaker 3: cause for the quarter, so that's a big problem for them. 27 00:01:26,640 --> 00:01:29,280 Speaker 3: It also worked to build up that electric vehicle inventory, 28 00:01:29,319 --> 00:01:31,040 Speaker 3: So a lot of issues for General Money. 29 00:01:31,080 --> 00:01:37,080 Speaker 2: Well, I hope is just General Motors. Even with a 30 00:01:37,160 --> 00:01:41,399 Speaker 2: recent lift going back to twenty twenty three, seven point 31 00:01:41,520 --> 00:01:44,959 Speaker 2: one percent return per year. Yeah, West with. 32 00:01:45,040 --> 00:01:47,680 Speaker 4: Dividends, that's pretty I'll tell you what, I think most 33 00:01:48,560 --> 00:01:50,880 Speaker 4: auto investors would probably take that that it is just 34 00:01:50,920 --> 00:01:54,400 Speaker 4: such a I always you the automobile business is just 35 00:01:54,440 --> 00:01:58,680 Speaker 4: a very very tough business, competitive business, grease a competition 36 00:01:58,760 --> 00:02:01,240 Speaker 4: from all over the world, and then. 37 00:02:01,240 --> 00:02:04,000 Speaker 5: You throw on top of that the whole uncertainty about 38 00:02:04,400 --> 00:02:08,000 Speaker 5: how this industry global is going to evolve into electric vehicles. 39 00:02:08,280 --> 00:02:11,040 Speaker 5: If I were an investor, I had no call on that, 40 00:02:11,320 --> 00:02:12,920 Speaker 5: and I'd be like, I can't own any of these 41 00:02:12,919 --> 00:02:14,200 Speaker 5: things because I just don't know how it's going to 42 00:02:14,240 --> 00:02:14,760 Speaker 5: play out. 43 00:02:14,720 --> 00:02:16,720 Speaker 2: You bring it down to the net income statement, Like 44 00:02:16,760 --> 00:02:19,480 Speaker 2: Walmart's picking up pennies. You know they do a lot 45 00:02:19,520 --> 00:02:24,040 Speaker 2: of revenue, but Walmart's making a penny, two pennies, three pennies. Gee, 46 00:02:24,120 --> 00:02:27,560 Speaker 2: I'm not doing that much better. They're making sixpennies, seven pennies. 47 00:02:27,639 --> 00:02:28,680 Speaker 5: Yeah, a dollar. 48 00:02:29,120 --> 00:02:31,880 Speaker 2: You're ready for, folks, Just to let's go to you know, 49 00:02:31,919 --> 00:02:38,920 Speaker 2: another stalwart manufacturer, in Vidia. The same discussion for Invidia here, folks, 50 00:02:39,040 --> 00:02:43,320 Speaker 2: they're picking up pennies too. They're making fifty pennies on 51 00:02:43,480 --> 00:02:48,960 Speaker 2: the dollar versus General Motors is making one tenth yeah, 52 00:02:49,000 --> 00:02:50,440 Speaker 2: five pennies, six pennies in. 53 00:02:50,720 --> 00:02:54,880 Speaker 5: Dollars and again and again. To me, the big issue 54 00:02:54,919 --> 00:02:57,480 Speaker 5: is what do these companies do with regarding their EV 55 00:02:57,720 --> 00:03:00,800 Speaker 5: strategy and how many billions do you invest in something 56 00:03:00,840 --> 00:03:03,960 Speaker 5: where you well, you just don't have the visibility is 57 00:03:04,000 --> 00:03:07,280 Speaker 5: so limited on what the ultimate demand is is going 58 00:03:07,400 --> 00:03:09,760 Speaker 5: to be here. But I mean that's why GM trades 59 00:03:09,800 --> 00:03:11,160 Speaker 5: it four to five times earning stime. 60 00:03:11,240 --> 00:03:13,359 Speaker 2: We continue with stock movers Lisa too. 61 00:03:13,600 --> 00:03:16,280 Speaker 3: We'll go to Coca Cola. It shares have been down 62 00:03:16,280 --> 00:03:18,040 Speaker 3: about one percent, so it was a beat on second 63 00:03:18,120 --> 00:03:21,680 Speaker 3: quarter sales, growth, profit, consumers they're paying the higher prices 64 00:03:21,720 --> 00:03:24,280 Speaker 3: for the company's soft drinks because they were increasing prices. 65 00:03:24,680 --> 00:03:26,920 Speaker 3: The big news, though, was about this new plan to 66 00:03:26,960 --> 00:03:29,400 Speaker 3: launch the new coke product made with the US cane 67 00:03:29,400 --> 00:03:31,600 Speaker 3: sugar this fall President Trump. You know, we hinted about 68 00:03:31,600 --> 00:03:34,040 Speaker 3: it last week on social media. But it's a big 69 00:03:34,120 --> 00:03:36,640 Speaker 3: change for them because Coca Cola has used high fruitose 70 00:03:36,720 --> 00:03:40,960 Speaker 3: corns herup for the past decades. In the US, it's 71 00:03:41,000 --> 00:03:43,360 Speaker 3: cheaper than cane sugar. So a lot of people love 72 00:03:43,400 --> 00:03:45,800 Speaker 3: the pricier version of the sauce drink that comes with 73 00:03:45,880 --> 00:03:49,720 Speaker 3: the cane sugar in other countries, and that's important to 74 00:03:49,760 --> 00:03:51,760 Speaker 3: the US from Mexico and it has its like cult following. 75 00:03:51,840 --> 00:03:55,559 Speaker 2: So you have a confusion here, Yes, are they replacing 76 00:03:56,280 --> 00:04:00,760 Speaker 2: regular coke with cane sugar or are they to generate 77 00:04:00,800 --> 00:04:01,760 Speaker 2: a new product. 78 00:04:02,160 --> 00:04:05,520 Speaker 3: And that's sort of what I yes, right, correct, I 79 00:04:05,640 --> 00:04:07,920 Speaker 3: launch a new product. So it's in addition, they're still 80 00:04:07,960 --> 00:04:10,120 Speaker 3: going to have, you know, the old one for people 81 00:04:10,240 --> 00:04:12,440 Speaker 3: still like it, but now they're gonna have a new option. 82 00:04:12,720 --> 00:04:14,800 Speaker 5: Don't call it new coke, right, we agreed on that. 83 00:04:14,960 --> 00:04:22,840 Speaker 6: Oh yeah, well that you know, is this just an 84 00:04:22,839 --> 00:04:26,320 Speaker 6: response to President Trump's comments, or that's how it's marked. 85 00:04:26,520 --> 00:04:28,880 Speaker 3: That's how it's marked. That that post on social media, 86 00:04:28,920 --> 00:04:30,039 Speaker 3: that's true social. 87 00:04:31,400 --> 00:04:34,480 Speaker 2: See I go to the headline here in organic revenue growth. 88 00:04:34,839 --> 00:04:38,480 Speaker 2: Organic revenue growth is within some industries if you don't 89 00:04:38,560 --> 00:04:42,640 Speaker 2: do mergers or spin offs or boldofs. What's the interior organic? 90 00:04:43,160 --> 00:04:46,800 Speaker 2: The actual visceral revenue growth of the system in there 91 00:04:46,839 --> 00:04:49,640 Speaker 2: at five to six percent, so it's sort of nominal 92 00:04:49,720 --> 00:04:52,440 Speaker 2: GD please plus a little bit, ye, seven to eight 93 00:04:52,480 --> 00:04:55,520 Speaker 2: percent would have been a whole different glow as well. 94 00:04:55,720 --> 00:04:56,600 Speaker 2: Do you have another. 95 00:04:56,400 --> 00:05:00,200 Speaker 3: Stock mover from I do? You're gonna love this mean stock? Okay, 96 00:05:00,279 --> 00:05:01,880 Speaker 3: So here we go and they're huge. 97 00:05:01,920 --> 00:05:03,520 Speaker 2: They're like Jens this week. 98 00:05:03,720 --> 00:05:07,320 Speaker 3: Okay. This is Open Door Technology. It's a ticker OPN. 99 00:05:07,640 --> 00:05:10,040 Speaker 3: It jumped as much one hundred and twenty one percent yesterday. 100 00:05:10,320 --> 00:05:14,160 Speaker 3: It's up about sixteen percent before the bell today. So 101 00:05:14,320 --> 00:05:16,719 Speaker 3: what it is? It's an online platform for buying and 102 00:05:16,760 --> 00:05:20,000 Speaker 3: selling US real estate. Right, but it has this fandom 103 00:05:20,000 --> 00:05:23,960 Speaker 3: among retail traders social media platforms. The newest means stock. 104 00:05:24,680 --> 00:05:27,320 Speaker 3: How did this all happen? Well, you have Eric Jackson. 105 00:05:27,360 --> 00:05:29,880 Speaker 3: He's a founder of Toronto based hedge fund EMJ Capital. 106 00:05:29,960 --> 00:05:32,000 Speaker 3: He made the show he's been on say Oh he 107 00:05:32,120 --> 00:05:35,039 Speaker 3: has Yes love that love That made a series of 108 00:05:35,040 --> 00:05:37,520 Speaker 3: posts on social media platform x and he said, you 109 00:05:37,560 --> 00:05:38,520 Speaker 3: know what, you need to buy this. 110 00:05:38,600 --> 00:05:39,320 Speaker 5: You need to buy this. 111 00:05:39,440 --> 00:05:42,400 Speaker 3: So it was listed as the top most actively traded 112 00:05:42,400 --> 00:05:45,960 Speaker 3: stock on places like stock wits yesterday afternoon. It was 113 00:05:46,040 --> 00:05:49,400 Speaker 3: heavily sighted on Reddit's Wall Street Bets threat. So just 114 00:05:49,440 --> 00:05:52,640 Speaker 3: to give you an idea idea of yesterday's trading, one 115 00:05:52,720 --> 00:05:56,920 Speaker 3: point nine billion of Open Door shares exchanged hands yesterday, 116 00:05:57,200 --> 00:06:01,200 Speaker 3: more than seventeen hundred percent of the three months. 117 00:06:01,440 --> 00:06:05,800 Speaker 1: The Stockmovers podcast from Bloomberg Radio. Check back with us 118 00:06:05,839 --> 00:06:08,760 Speaker 1: throughout the day for the latest roundup of companies making 119 00:06:08,839 --> 00:06:12,400 Speaker 1: news on Wall Street and for the latest market moving headlines. 120 00:06:12,560 --> 00:06:16,479 Speaker 1: Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg 121 00:06:16,560 --> 00:06:19,359 Speaker 1: dot com, and on Applecarplay and Android Auto with the 122 00:06:19,360 --> 00:06:20,760 Speaker 1: Bloomberg Business app.