WEBVTT - Apple Sinks, SanDisk Surges, Strategy Falls After Their Funding Model Jolts Bitcoin Traders

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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 Masser, a long with Tim Stanek. Let's get

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<v Speaker 1>to some stocks on the move on this Thursday. Just

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<v Speaker 1>Metin is Bloomberg News Deputy team leader and senior reporter

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<v Speaker 1>here in our New York studio. So yeah, let's talk

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<v Speaker 1>about the trade. And you do have one of the

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<v Speaker 1>Mag seven that we're going to start with.

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<v Speaker 3>And to Tim's point, because I was going to mention

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<v Speaker 3>using mov for the Mag seven index, so of course

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<v Speaker 3>it is Apple down close to five percent. It had

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<v Speaker 3>been almost down as much as seven percent earlier, but

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<v Speaker 3>still on paceports worst day since February twelfth. So unfortunately

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<v Speaker 3>this came on the back of those reports of corpse.

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<v Speaker 3>Mark German from Bloomberg News putting it outs about the

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<v Speaker 3>price increases for a number of its products. If you're

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<v Speaker 3>looking at its iPad, it's Mac Home devices, the Vision Pro.

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<v Speaker 3>We haven't seen those price increases just yet for sale

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<v Speaker 3>the iPhone or iPods just yet, but potentially he was

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<v Speaker 3>saying that could be coming so people watching that. So

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<v Speaker 3>if you're looking at what happened this morning, because Nastek

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<v Speaker 3>one hundred futures were at more than two percent, But

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<v Speaker 3>then once this came back, you saw Apple, a lot

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<v Speaker 3>of those hardware type companies, and of course the majority

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<v Speaker 3>of those mag seven stocks all lower at this point,

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<v Speaker 3>but you're seeing kind of the opposite effect when it

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<v Speaker 3>comes to memory and chip stocks. They're benefiting from that

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<v Speaker 3>because the whole reason Apple did this was because of

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<v Speaker 3>that shortage when it comes to memory chips.

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<v Speaker 4>But you know what's so interesting, and when Tim Cook

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<v Speaker 4>gave that interview to the Wall Street Journal a week ago,

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<v Speaker 4>we were actually you were and I were flying to

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<v Speaker 4>a remote Apple share surge because of the pricing power

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<v Speaker 4>that many analysts thought Apple had. We're going to talk

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<v Speaker 4>with Mark a little later in our program about this

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<v Speaker 4>specific story and the products that it does affect. But

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<v Speaker 4>if investors think that Apple has pricing power, then raising

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<v Speaker 4>prices should be a boon and it shouldn't actually destroy demand.

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<v Speaker 3>And typically Apple's one of those stocks were even on

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<v Speaker 3>massive excell off days, sometimes you see that stock either

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<v Speaker 3>flat or marginally hire just because of the cash preserves

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<v Speaker 3>in the amount of buybacks that company still has, so

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<v Speaker 3>obviously it's not a complete knock on the company. But

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<v Speaker 3>when it comes to those price pressures and the whole

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<v Speaker 3>macro inflation story that we constantly talk about, you're obviously

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<v Speaker 3>seeing that stock giving up those gains today, But of

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<v Speaker 3>course chips and those memory stocks are the ones that

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<v Speaker 3>are going to benefit from that shortage that we've seen.

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<v Speaker 4>That's called a perfect session.

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<v Speaker 1>I was hoping you'd say that to one of those

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<v Speaker 1>companies that supplies stuff in the supply go to sand disks.

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<v Speaker 3>Yes, so sand Disco, of course the best NAZAQ one

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<v Speaker 3>hundred gainer among the top gainers for the S and

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<v Speaker 3>P five hundred as well. So the ticker is SNDK

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<v Speaker 3>up twenty percent on pace for its best day since

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<v Speaker 3>January sixth. So, of course, the insatiable demand for that

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<v Speaker 3>AI infrastructure, that's why you're seeing this stock higher. But

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<v Speaker 3>not just that. I can't fail to mention what happened

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<v Speaker 3>with Micron Technologies earns results after the bell yesterday. M

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<v Speaker 3>Use the ticker symbol for Micron if you're looking at

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<v Speaker 3>that stock up seventeen percent on pace to close at

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<v Speaker 3>a fresh record, So blockbuster earnings reports. City was actually

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<v Speaker 3>talking about sand Discs specifically because of the story with

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<v Speaker 3>not just Micron, but the tight supply. They still feel

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<v Speaker 3>like sand Disc in addition to Micron will benefit from that,

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<v Speaker 3>and so they ended up raising its price target to

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<v Speaker 3>twenty five hundred. It had been twenty twenty five dollars before,

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<v Speaker 3>so they still see that as a winner in addition

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<v Speaker 3>to Micron technology.

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<v Speaker 1>Yeah, I mean, gosh, you gotta look at like all

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<v Speaker 1>the related right, and also supply chain, something we talked

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<v Speaker 1>about earlier.

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<v Speaker 3>It's interesting though, because other chip stocks, if you're looking

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<v Speaker 3>at AR Marvel not doing quite as well as the

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<v Speaker 3>memory space or in video, that stock is still marginally

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<v Speaker 3>lower today. So it's really more not ships broadly, but

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<v Speaker 3>memory stocks by the memories that we're doing well. Yeah,

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<v Speaker 3>which is why we kind of a chopping market today.

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<v Speaker 1>Well, it's also then the conversation when it comes to AI,

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<v Speaker 1>like you know, shifting once again. All right, let's get

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<v Speaker 1>to strategy.

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<v Speaker 3>Yes, MSTR is the ticker on this down close to

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<v Speaker 3>eight percent, so though would be on pace four, it's

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<v Speaker 3>worst day just since Wednesday. If you look on a

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<v Speaker 3>monthly basis, this stock's down more than forty five percent,

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<v Speaker 3>so formally known as micro strategy, but that would be

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<v Speaker 3>its worst month since two thousand and two, just because

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<v Speaker 3>there has been a number of pressure and Tim talks

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<v Speaker 3>about this on the Crypto Show. But obviously this is

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<v Speaker 3>tied to Bitcoin and the bear market that Bitcoin has

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<v Speaker 3>been on. This is a big supplier when it comes

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<v Speaker 3>to that, and there's concerns amongst strategists as far as

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<v Speaker 3>the dividend payments strategy is going to have. There were

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<v Speaker 3>some senior notes that basically they had to fund and

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<v Speaker 3>there's concerns about will they make those types of payments

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<v Speaker 3>and so in addition to that supplier, what's happening with

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<v Speaker 3>Bitcoin almost as low as fifty eight thousand today, That's

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<v Speaker 3>why you're seeing this stock as well as Coinbase, Marathon Digital,

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<v Speaker 3>other stocks tied to the crypto space down a lot.

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<v Speaker 3>But that monthly size and scope looked very painful. I

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<v Speaker 3>mean that's over two decades for a monthly basis for

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<v Speaker 3>that stuffy.

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<v Speaker 4>I should have a strategy on the most or down

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<v Speaker 4>at the lowest, going back to February twenty six of

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<v Speaker 4>twenty twenty four, so at levels not seen in two years.

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<v Speaker 4>Giving up all those gain senior this Trump administration.

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<v Speaker 2>This stockmover's report from Bloomberg Radio. Check back with us

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