WEBVTT - Nike Slumps, Intel Jumps, Tesla Gains

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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>I'm Carol Messer along with Tim Stenevic. Let's get to

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<v Speaker 1>some stocks on the move on this Wednesday. Joining us

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<v Speaker 1>to do that. Bloomberg News CROSSUSET reporter Isabelle Lee. She

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<v Speaker 1>is in the house.

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<v Speaker 3>Hi, it's April. It's already this month, April fools. But

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<v Speaker 3>I won't be saying much of a joke. I'm going

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<v Speaker 3>to start it with Nike. I tried my best.

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<v Speaker 1>I tried at the top and at the door.

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<v Speaker 3>Good work with me too, Okay. Nike shares are down

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<v Speaker 3>by fifteen percent, that's the lowest and twenty fourteen, so

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<v Speaker 3>really not a good day. The stock has now fallen

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<v Speaker 3>some thirty percent this year, So the retailer gave a

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<v Speaker 3>gloomy outlook for the rest of the year, and they

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<v Speaker 3>also said revenue is expected to decline some two to

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<v Speaker 3>four percent. Bloomberg Intelligence analysts were obviously expecting for more

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<v Speaker 3>growth two percent sales throws in fact, and a bigger

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<v Speaker 3>gain as a year progress. So Nike has been trying

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<v Speaker 3>to regain market dominance, but it hasn't been panning out.

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<v Speaker 3>It's facing a lot of headwinds. Bloomberg Intelligence point I'm

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<v Speaker 3>Goyel said that the war is likely having an impact

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<v Speaker 3>and the pressures will persist. And there was a call,

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<v Speaker 3>it was a Bloomberg schoop that we got a recording

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<v Speaker 3>of as this is a great yes, the CEO, Elliott

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<v Speaker 3>Hill was like, I'm so tired. I know you are too,

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<v Speaker 3>and I thought that was It's good when a leader

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<v Speaker 3>commisserates with you, right.

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<v Speaker 4>It is, But how do you rally the troops in

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<v Speaker 4>an environment where your stock is at a low not

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<v Speaker 4>seen for ten years and you want to get you

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<v Speaker 4>want to try to create excitement. You want to get

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<v Speaker 4>people excited about the brand, so then they have these

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<v Speaker 4>creative ideas that help them get out of this challenging

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<v Speaker 4>environment that they've been in for so long.

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<v Speaker 3>I guess that's his challenge. Hill took over in twenty

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<v Speaker 3>twenty four and it hasn't been that great since then.

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<v Speaker 3>He does seem like he's a kind and emphatic leader,

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<v Speaker 3>at least judging from the stories we've been reading. But

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<v Speaker 3>we know that's not enough and to your point, what

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<v Speaker 3>are you going to do? Morale is very low. It's

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<v Speaker 3>the lowest since twenty fourteen, so more than a decade.

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<v Speaker 2>Act.

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<v Speaker 1>Well, the CFO says, we're going to be managing costs

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<v Speaker 1>carefully as we've been doing, and so that always is

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<v Speaker 1>a little bit of pressure internally as they try to

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<v Speaker 1>kind of write the ship. So anyway, Hill said, I

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<v Speaker 1>hate to lose, and we've got work to do in

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<v Speaker 1>some of these places.

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<v Speaker 4>Okay, Nike under pressure? What else you got?

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<v Speaker 3>Intel? And now this is a stocking degree and up

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<v Speaker 3>by eight and a half percent. So they're buying a

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<v Speaker 3>steak in an Irish manufacturing plant as part of their

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<v Speaker 3>comeback plan. So they agreed to pay fourteen point two

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<v Speaker 3>billion dollars to buy back half of a plant in

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<v Speaker 3>Ireland that it previously sold to a follow So the

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<v Speaker 3>transaction will be financed in cash on hand and the

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<v Speaker 3>issue once of around six and a half billion in

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<v Speaker 3>new debt. And of course this is expected to add

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<v Speaker 3>to their earnings per share. This is the latest move

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<v Speaker 3>for Intel. You know, I thought, why Ireland. Maybe a

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<v Speaker 3>lot of people know this, but I didn't. But the

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<v Speaker 3>Ireland purchase reflects their glowing growing confidence in the business,

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<v Speaker 3>and AMD and Analog Devices also have locations in Ireland.

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<v Speaker 3>I've never been.

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<v Speaker 1>There's a big tech presence right in its Ireland. They

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<v Speaker 1>do a lot to bring in foreign direct investment and

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<v Speaker 1>some of it. Yeah, they've been very, very supportive of

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<v Speaker 1>companies coming in. Where should we go next?

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<v Speaker 3>Tesla, of course, Elon Musk always in the headlines. Sits

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<v Speaker 3>up by just one point eight percent. Just it's still

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<v Speaker 3>a degree, but it's not great news actually, so I'm

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<v Speaker 3>not sure why this stock is popping there because the

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<v Speaker 3>auto business is likely to just get tougher and tougher.

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<v Speaker 3>For Tesla, they delivered about three hundred and seventy two

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<v Speaker 3>thousand vehicles during the last three months. So yes, this

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<v Speaker 3>is up eleven percent from a year ago, but it's

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<v Speaker 3>still ranks or Wood rank among the lowest in recently

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<v Speaker 3>quarterly totals for the company, and sales early last year,

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<v Speaker 3>as we know, were really affected by the backlash against

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<v Speaker 3>Elon Musk and his participation in the Trump government. And

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<v Speaker 3>of course we also know that there were a production

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<v Speaker 3>process tied to Model Y, which just test lasts most

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<v Speaker 3>popular vehicle.

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<v Speaker 1>I just can't wait till they just like lump it

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<v Speaker 1>all into one thing. Really yeah, yeah, I think right. Yeah.

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<v Speaker 4>I asked Craig Trudell about that earlier today in the UK,

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<v Speaker 4>and he covers the entire Auto istry. He's like, this

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<v Speaker 4>is this is something that you know when when SpaceX

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<v Speaker 4>slash XII slash everything else that's in there goes public.

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<v Speaker 4>That's something that investors are going to be looking for

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<v Speaker 4>because it, you know, the center quote unquote synergies with

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<v Speaker 4>the companies. But there's also like the Elon Musk pay

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<v Speaker 4>package that's tied to market cap.

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<v Speaker 1>Yeah, so I know, it just gets it's always interesting

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<v Speaker 1>if it's Elon, it's interesting.

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<v Speaker 3>It's just it might come true. It might come true soon.

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<v Speaker 3>They confidentially filed for an IPO, which I'm sure you

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<v Speaker 3>guys have been reporting over and over.

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<v Speaker 1>Actually, thank you for doing that.

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<v Speaker 3>No, you're so great, is it?

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<v Speaker 1>Belly Bloomberg News crossus that reporter. Check out our Stockover's podcast,

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<v Speaker 4>Happy Birthday, Oh, Happy bir Day fifty.

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