WEBVTT - Dollar Tree's Weak Outlook, ON Semi Rises, CrowdStrike Drops

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<v Speaker 1>Bloomberg Audio Studios podcasts, Radio News, The.

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>I'm Emily Brafeo here with David Girl. Let's take a

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<v Speaker 1>look at some stocks on the move today with Bloomberg

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<v Speaker 1>News Earnings reporter Red Brown. Dollar Tree. This is different

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<v Speaker 1>than Dollar General, right, this is Dollar Tree.

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<v Speaker 3>Yeah.

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<v Speaker 4>I mean, like you said, it was kind of a

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<v Speaker 4>drab day in the markets at the end, but we

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<v Speaker 4>were able to find a couple of movies here. Dollar

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<v Speaker 4>Tree one of the big decliners today and actually went

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<v Speaker 4>from a really positive report in the world of discount

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<v Speaker 4>retailers yesterday, with Dollar General posting one of its strongest

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<v Speaker 4>results in years, raising their allog as well, and then

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<v Speaker 4>Dollar Tree today doing.

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<v Speaker 3>Kind of the opposite.

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<v Speaker 4>They warned of their second quarter profits could fall as

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<v Speaker 4>much as fifty percent, and that's really why we're seeing

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<v Speaker 4>this quite aggressive move here today, and it just really

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<v Speaker 4>kind of highlights how different these two companies are. I mean,

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<v Speaker 4>the main thing that we need to pay attention to

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<v Speaker 4>is that Dollar General, the one that did well yesterday,

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<v Speaker 4>gets most of their sales from consumables like milk and

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<v Speaker 4>cheese and ice cream, things like that that you guys are.

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<v Speaker 3>Just talking about today, Which don't.

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<v Speaker 4>Mean I wasn't able to hear your old interview, but

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<v Speaker 4>I imagine one of those things maybe less affected by tariffs,

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<v Speaker 4>and that's something that Dollar General has called out, less

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<v Speaker 4>affected by tariffs. Dollar Tree, on the other hand, is

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<v Speaker 4>more of those kind of like you know, knick knacks

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<v Speaker 4>and chot Chi's and things like that. Huge exposure to China,

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<v Speaker 4>and that's really why they're kind of their bottom lines

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<v Speaker 4>they get hit a little bit more harder.

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<v Speaker 3>What else are you watching?

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<v Speaker 4>Also we can go to the positive side is on

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<v Speaker 4>semiconductor they are leading all stocks, actually they let all

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<v Speaker 4>stocks today and s people FIE hundred also drug up

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<v Speaker 4>some of other semiconductor names, and XP Semiconductors and Sagate

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<v Speaker 4>both in the top ten performers. And that's actually coming

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<v Speaker 4>off of just some commentary from the CEO who was

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<v Speaker 4>speaking at a conference today, just saying that their markets

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<v Speaker 4>have finally kind of hit bottom. So outside of AI

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<v Speaker 4>MA conductors have been kind of struggling, so like in

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<v Speaker 4>industrial automotive places like that have been dealing with some

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<v Speaker 4>kind of a glut of inventory a lot of other customers,

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<v Speaker 4>and we're finally starting to get out of that. So

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<v Speaker 4>so on Semiiconductors speaking to that they're reporting soon, I believe,

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<v Speaker 4>and if they do report kind of in line, it'll

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<v Speaker 4>be two years of declines, of quarterly declines. But CEO

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<v Speaker 4>saying that this should be kind of the bottom final,

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<v Speaker 4>We've hit rock bottom and we should be able to move.

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<v Speaker 3>On fasting because we talk so much about the AI

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<v Speaker 3>chips and the amount of investment and the cost and

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<v Speaker 3>the difficulty of making more of them, of these foundaries,

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<v Speaker 3>and you don't often think about the wor workaday and more.

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<v Speaker 1>Some right, it seems like the non AI chips, there's

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<v Speaker 1>an inventory glut because maybe a business buy You're not

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<v Speaker 1>going to replace your non AI chip like every year, right,

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<v Speaker 1>so you're like, oh, I don't need to buy another one,

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<v Speaker 1>and then company suffers.

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<v Speaker 4>Well, I mean we do. We have lost so much

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<v Speaker 4>of the conversation with AI chips, but I think we

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<v Speaker 4>forget that there was like the supply chain crisis of

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<v Speaker 4>a few years ago. Companies bought a lot of chips

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<v Speaker 4>during that to get to to kind of like make

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<v Speaker 4>sure that they were able to get their products out

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<v Speaker 4>and they bought way way too much obviously, and now

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<v Speaker 4>and then there's also kind of demand issues in some

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<v Speaker 4>of the end markets, so like automotive and EVS. People

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<v Speaker 4>weren't buying as many, so you're not making as many.

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<v Speaker 4>So there's just a couple of different issues. But it

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<v Speaker 4>does seem like, you know, the ship is turning for

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<v Speaker 4>on and some of these other kind of you know,

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<v Speaker 4>less flashy semiconductor names.

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<v Speaker 1>Okay, finally you're looking at CrowdStrike, the cybersecurity company c

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<v Speaker 1>r w D.

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<v Speaker 4>Yeah, that's right, crowd Strike a couple of bad headlines

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<v Speaker 4>coming out of the company today. So they're down around

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<v Speaker 4>six percent, finished around six percent, was as low as

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<v Speaker 4>nine percent at points during the day. They received it

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<v Speaker 4>required from the dj n SC requesting information for some

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<v Speaker 4>of their deals. Bloeberg's been doing some really good reporting

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<v Speaker 4>around this thirty two million deal with Kera Soft Technology.

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<v Speaker 4>Doesn't sound like a big deal, but they are provider

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<v Speaker 4>cybersecurity to the IRS, so you know, they're obviously getting

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<v Speaker 4>a little bit more government scrutiny for that deal. And

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<v Speaker 4>you know, the company has just been kind of tied

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<v Speaker 4>up with legal issues and Obviously they dominated the news

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<v Speaker 4>last year. So this Ernie Sport that had yesterday, which is

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<v Speaker 4>the other bad headline coming out of the company. Kind

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<v Speaker 4>of a poor showing first quarter, or report missed their

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<v Speaker 4>forecasts for for consensus. So yeah, a couple of compounding things.

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<v Speaker 4>This was supposed to be their moment to kind of

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<v Speaker 4>shed the bad news from last year of the outage.

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<v Speaker 4>This was supposed to be their fourth quarter, you know,

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<v Speaker 4>set the path forward, and that's this some of these

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<v Speaker 4>other headlines is kind of taking over of what was

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<v Speaker 4>supposed to be a positive a positive.

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<v Speaker 3>Just note in here for the first time, I think

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<v Speaker 3>they're commenting on these investigations, so it's it's, uh, you

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<v Speaker 3>confirming the fact that they're they're underway and found to

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<v Speaker 3>be a prompt from going forward.

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<v Speaker 2>The Stock Movers podcast from Bloomberg Radio. Check back with

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