WEBVTT - Week Ahead: Chewy, Beyond, Carnival

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. The Stock Movers report,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg data.

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<v Speaker 2>Let's take a look now at some stocks making news

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<v Speaker 2>in the week ahead. I'm Alexis Christophers with Tatiana Dari,

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<v Speaker 2>a Bloomberg strategist for Markets Live. Tatiana, you brought three

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<v Speaker 2>names with you. Let's begin with if you're a pet owner,

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<v Speaker 2>you know them well.

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<v Speaker 3>Chewy Chewey exactly. Chewey will report fourth quarter earnings and

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<v Speaker 3>next week, and analysts are expecting a solid profit increase

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<v Speaker 3>versus the year ahead, and that may come to help

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<v Speaker 3>the stock revive some of that momentum because it has

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<v Speaker 3>come under pressure this year on concerns over growth and

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<v Speaker 3>the profitability outlook for this year and next year. And

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<v Speaker 3>analyst and Morgan Stanley expect this print to set the

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<v Speaker 3>tone for the year ahead. And they expect full your

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<v Speaker 3>guidance of about seven to seven and a half of

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<v Speaker 3>revenue growth. So remember that number because anything less than

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<v Speaker 3>that could come to pressure the stock again. The company

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<v Speaker 3>you know has named a new CFO in February reaffirmed

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<v Speaker 3>its financial outlook, so it has tailwinds in place. Its

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<v Speaker 3>revenue has been steadily climbing through the years, even as

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<v Speaker 3>we've seen consumers come under pressure from all prices rising elsewhere. Basically,

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<v Speaker 3>so has it has a momentum there. It's just that

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<v Speaker 3>when people are looking ahead, they're concerned about consumers pulling

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<v Speaker 3>back now with high oil prices, So we sort of

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<v Speaker 3>need to see revenue outlook and that guidance be lifted

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<v Speaker 3>so that the stock investors feel more reassured.

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<v Speaker 2>You know, it's interesting when you talk about consumer spending,

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<v Speaker 2>because sometimes we'll pull back on things for ourselves, but

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<v Speaker 2>I think history has shown people don't know, necessarily pull

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<v Speaker 2>back for their pets. They're still going to pay for

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<v Speaker 2>their pets. Also, they have their Chewy vet clinics that

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<v Speaker 2>I guess are in stores. I understand that's going to

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<v Speaker 2>be a bigger part of the Chewy story, I guess

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<v Speaker 2>in twenty twenty six.

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<v Speaker 3>Yes, exactly, a push there. And they also have their

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<v Speaker 3>sort of revenue or their online platform or you can

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<v Speaker 3>schedule deliveries, and that's also been a big focus for

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<v Speaker 3>the company and for the stock. But yet again, as

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<v Speaker 3>those growth concerns have been battering the stock. It will

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<v Speaker 3>be very important for them to go back to what

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<v Speaker 3>analysts have been saying to a bet and raise cadence,

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<v Speaker 3>which they have not had in recent quarters. We have

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<v Speaker 3>a great function on the terminal where you could see

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<v Speaker 3>how results have been coming in pitted against expectations, and

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<v Speaker 3>five or four of the past five have not really

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<v Speaker 3>been great. The last one was better, which sets up

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<v Speaker 3>hopes that this one will come in also better than

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<v Speaker 3>next part.

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<v Speaker 2>And just want to add Morgan Stanley kept its overweight

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<v Speaker 2>rating on Chewy, trimming its price target to fifty dollars

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<v Speaker 2>from fifty one, saying the stock is offering a quote

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<v Speaker 2>compelling entry point following its recent decline. So Chewy on

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<v Speaker 2>the move here in the coming week. Also, beyond Meat,

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<v Speaker 2>which I know is dropping the name meat from its

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<v Speaker 2>from its official title, right, tell us what we can

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<v Speaker 2>expect there.

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<v Speaker 3>Well, the maker of alternative meat product is also did

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<v Speaker 3>to report, but expectations here are much lower because they've

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<v Speaker 3>already reported preliminary revenue and it came below expectations. With that,

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<v Speaker 3>they also said that they will delay the filing of

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<v Speaker 3>their ten K annual report because the company requires additional

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<v Speaker 3>time to complete a review and analysis related to its

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<v Speaker 3>inventory balances. And you know when you get messages like that,

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<v Speaker 3>that always books the market. And this is something that

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<v Speaker 3>this company did not need because if you look at

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<v Speaker 3>the long term chart, the stock has fallen dramatically since

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<v Speaker 3>it's much talk to IPO in twenty nineteen. It's lost

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<v Speaker 3>more than ninety percent of its value since then. So

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<v Speaker 3>it really doesn't have a good story. It keeps getting worse,

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<v Speaker 3>and it doesn't have a good track record when it

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<v Speaker 3>comes to earnings either. Four of the past five quarters

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<v Speaker 3>have seen earnings really disappoint expectations and shares fall as

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<v Speaker 3>a result. So the bar is pretty high here for

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<v Speaker 3>a surprise.

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<v Speaker 2>Yeah, and you know, I know they're trying to expand

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<v Speaker 2>beyond fake meat. They're rebranding as Beyond the Plant Protein Company.

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<v Speaker 2>They're introducing these new products like high protein sparkling drinks

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<v Speaker 2>and what they call simplified plant protein foods. We'll see

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<v Speaker 2>if it's you know, that's what it takes to turn

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<v Speaker 2>things around. All right, let's squeeze Carnival in here. The

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<v Speaker 2>cruise line. How are they doing or how are they

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<v Speaker 2>expected to do?

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<v Speaker 3>Carnival reports before the bell on March twenty seven. What

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<v Speaker 3>the street wants to know here is how much will

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<v Speaker 3>higher oil prices impact its year head of look, this

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<v Speaker 3>is sort of the big question when it comes to

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<v Speaker 3>earning forecasts, just overall. In the S and P five hundred,

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<v Speaker 3>but specifically to Carnival, Morgan Stanley identified the name as

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<v Speaker 3>the most exposed among cruise liners to oil prices because

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<v Speaker 3>it does not hedge, which they reckon that this would

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<v Speaker 3>translate into about a forty five hit hit to its

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<v Speaker 3>EPs outlook, or that's about a twenty percent hit to

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<v Speaker 3>its overall guidance if you want to think in percentage terms. Okay, well,

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<v Speaker 3>if you look at the stock, that's about how much

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<v Speaker 3>it has fallen since the war has started. So basically

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<v Speaker 3>you could argue that the market has baked that in already. Okay,

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<v Speaker 3>But although this is an estimate, not a confirmation from

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<v Speaker 3>the company, so we'll have to see if that comes

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<v Speaker 3>in sort of a higher or lower than expected. But

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<v Speaker 3>the point is that the market has already baked in

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<v Speaker 3>some bad news. Now we have to see how bad

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<v Speaker 3>will the news actually be.

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