1 00:00:02,520 --> 00:00:07,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,720 --> 00:00:18,279 Speaker 2: So start at food pulsewon your live here in our 5 00:00:18,280 --> 00:00:19,480 Speaker 2: Bloomberg Interactive. 6 00:00:19,120 --> 00:00:21,400 Speaker 1: Brokers studio streaming live on YouTube as well. Let's get 7 00:00:21,440 --> 00:00:23,560 Speaker 1: a sense of what's going on at there with individual 8 00:00:23,600 --> 00:00:26,439 Speaker 1: stock movers. We do that Isabel Lee is about what 9 00:00:26,480 --> 00:00:28,680 Speaker 1: you got? I want to talk about micro strategy. I 10 00:00:28,720 --> 00:00:30,480 Speaker 1: think this is the stock of the day. Shares are 11 00:00:30,480 --> 00:00:33,680 Speaker 1: down by nearly two percent, the tickers MSTR. So why 12 00:00:33,720 --> 00:00:35,760 Speaker 1: are we talking about this? Because today is the annual 13 00:00:35,840 --> 00:00:39,000 Speaker 1: quarter Louis rebalance for the SMP five hundred, and for 14 00:00:39,040 --> 00:00:42,200 Speaker 1: the first time in a while or ever, actually micro 15 00:00:42,400 --> 00:00:45,479 Speaker 1: micro strategy or strategy is being considered as a contender 16 00:00:45,720 --> 00:00:47,600 Speaker 1: for inclusion in the s and P five hundred. So 17 00:00:47,600 --> 00:00:50,280 Speaker 1: you may be wondering why and what change? So what changes? 18 00:00:50,360 --> 00:00:53,560 Speaker 1: Last quarter? They had a fourteen billion dollar unrealized gain 19 00:00:53,720 --> 00:00:57,520 Speaker 1: which delivered a profitability requirement that's required for the SMP 20 00:00:57,680 --> 00:00:59,680 Speaker 1: to include them. So there are a ton of requirements, 21 00:01:00,320 --> 00:01:02,480 Speaker 1: and one of them is for a company to be 22 00:01:02,720 --> 00:01:05,440 Speaker 1: profitable for the past four quarters and the last quarter, 23 00:01:05,520 --> 00:01:08,560 Speaker 1: so MicroStrategy hit that and you may have your own opinions, 24 00:01:08,600 --> 00:01:11,760 Speaker 1: but the fact is that they're now eligible and S 25 00:01:11,800 --> 00:01:14,760 Speaker 1: and P unlike other indexes and Jack's a little bit 26 00:01:14,760 --> 00:01:19,240 Speaker 1: more nuanced and discretion, but technically they're eligible. So that 27 00:01:19,280 --> 00:01:21,160 Speaker 1: would mean if it's including the S and P, five 28 00:01:21,280 --> 00:01:23,440 Speaker 1: hundred a ton of passive funds would be forced to 29 00:01:23,520 --> 00:01:25,920 Speaker 1: buy Strategy, even though up until now they may have 30 00:01:25,959 --> 00:01:28,080 Speaker 1: wanted to hold it in At Arm's late nearly fifty 31 00:01:28,120 --> 00:01:31,160 Speaker 1: million chairs worth around sixteen billion dollars in prices, and 32 00:01:31,200 --> 00:01:35,679 Speaker 1: that's the cold logic of investing. Bildana Hirich, my teammate 33 00:01:35,720 --> 00:01:38,040 Speaker 1: now my TL, wrote a story about how Vanguard is 34 00:01:38,080 --> 00:01:41,000 Speaker 1: actually one of the biggest holders of micro Strategy just 35 00:01:41,000 --> 00:01:43,920 Speaker 1: because they hold a lot of index funds. So that's 36 00:01:44,000 --> 00:01:46,800 Speaker 1: good news or not so great, depending on where you 37 00:01:46,800 --> 00:01:50,320 Speaker 1: stand in the bigcoin spectrum. But that's something we'll find out. 38 00:01:50,360 --> 00:01:51,200 Speaker 1: At five fifteen today. 39 00:01:51,320 --> 00:01:52,559 Speaker 2: It's good news for Michael Sailor. 40 00:01:52,680 --> 00:01:56,400 Speaker 1: Yes, definitely Carmen, what's going on there? Carmen shares are 41 00:01:56,480 --> 00:01:59,960 Speaker 1: up almost nine percent, so Carmen is I looked at 42 00:02:00,080 --> 00:02:04,440 Speaker 1: up it's a holdings company, but they really through its subsidiaries, 43 00:02:04,520 --> 00:02:08,040 Speaker 1: they specialized in design, testing, manufacturing of mission critical systems 44 00:02:08,360 --> 00:02:10,680 Speaker 1: for emerging missiles and defense and space program so you 45 00:02:10,680 --> 00:02:14,880 Speaker 1: can just bucket once company. Yes in that defense company sector. 46 00:02:14,960 --> 00:02:17,360 Speaker 1: So now they have a strong by rating and street 47 00:02:17,440 --> 00:02:19,880 Speaker 1: high of one hundred dollars from Raymond James. That's their 48 00:02:19,919 --> 00:02:22,480 Speaker 1: price target. The analyst there is said that the business 49 00:02:22,480 --> 00:02:24,720 Speaker 1: could triple by twenty thirty. The company is the most 50 00:02:24,720 --> 00:02:28,440 Speaker 1: profitable in the defense ecosystem with margins around double its 51 00:02:28,480 --> 00:02:31,000 Speaker 1: most profitable pier. So that's really great news. And you 52 00:02:31,040 --> 00:02:33,440 Speaker 1: see this doock pop by almost nine percent. The ticker 53 00:02:33,520 --> 00:02:38,600 Speaker 1: is KRMN. All right, Lulu, this is also exciting. Lululemonschairs 54 00:02:38,840 --> 00:02:42,120 Speaker 1: ticker is lu Lu Lulu. It's down by almost twenty percent. 55 00:02:42,360 --> 00:02:45,720 Speaker 1: That's after the company slash their outlook again, disappoint investors 56 00:02:45,720 --> 00:02:47,919 Speaker 1: for the third straight quarter. This is the low essens 57 00:02:47,919 --> 00:02:49,760 Speaker 1: twenty twenty and it's hard for them because they have 58 00:02:49,840 --> 00:02:53,600 Speaker 1: to balance tariff expectations in a difficult consumer environment and 59 00:02:53,639 --> 00:02:56,640 Speaker 1: they're really impacted by the Minimus exemption. So this is 60 00:02:56,720 --> 00:02:59,440 Speaker 1: when a US policy that allows low valut shipments under 61 00:02:59,440 --> 00:03:01,639 Speaker 1: eight hundred to under the country so they really benefited 62 00:03:01,639 --> 00:03:04,200 Speaker 1: from this. You know, when you order overpriced one hundred 63 00:03:04,200 --> 00:03:07,560 Speaker 1: dollars leggings, which I like, I'm guilty, but they're axempted 64 00:03:07,600 --> 00:03:10,200 Speaker 1: from that, so now they may not be so for 65 00:03:10,240 --> 00:03:13,200 Speaker 1: the full year Lululemon lowered revenue and EPs outlook. 66 00:03:14,080 --> 00:03:18,080 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 67 00:03:18,160 --> 00:03:20,760 Speaker 2: us throughout the day for the latest roundup of companies 68 00:03:20,800 --> 00:03:23,919 Speaker 2: making news on Wall Street and for the latest market 69 00:03:23,960 --> 00:03:28,440 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 70 00:03:28,520 --> 00:03:32,000 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 71 00:03:32,080 --> 00:03:33,560 Speaker 2: the Bloomberg Business app.