1 00:00:02,480 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,520 --> 00:00:12,440 Speaker 2: The Stock Movers report, your roundup of companies making moves 3 00:00:12,440 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,600 --> 00:00:19,920 Speaker 1: Let's take a look now, add some stocks making news 5 00:00:19,920 --> 00:00:22,960 Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bailey Lipschultz, 6 00:00:23,000 --> 00:00:26,200 Speaker 1: senior equities reporter for Bloomberg News. And Bailey, it looks 7 00:00:26,239 --> 00:00:28,640 Speaker 1: like Wednesday is going to be a particularly busy day 8 00:00:28,680 --> 00:00:31,360 Speaker 1: on the earnings. We got several big names reporting in 9 00:00:31,400 --> 00:00:34,080 Speaker 1: the middle of the week. So let's start with Cisco. 10 00:00:34,280 --> 00:00:36,720 Speaker 1: The tech earnings aren't quite done with us yet. 11 00:00:36,640 --> 00:00:38,960 Speaker 3: Huh Now, not done with us yet, and we're pivoting 12 00:00:39,040 --> 00:00:41,800 Speaker 3: to some of those I don't know, actual companies that 13 00:00:41,880 --> 00:00:44,479 Speaker 3: make real tangible goods that you can hold, and Cisco's 14 00:00:44,520 --> 00:00:46,559 Speaker 3: going to be a big one given the stocks up 15 00:00:46,600 --> 00:00:48,760 Speaker 3: more than thirty percent over the last year and a 16 00:00:48,800 --> 00:00:51,319 Speaker 3: lot of expectations are a big focus on can they 17 00:00:51,400 --> 00:00:54,880 Speaker 3: maintain the momentum that we've been seeing given the jitters, 18 00:00:55,000 --> 00:00:58,200 Speaker 3: probably speaking around software AI and kind of the broader 19 00:00:58,200 --> 00:00:58,600 Speaker 3: sell off. 20 00:00:58,760 --> 00:01:01,320 Speaker 1: Yeah, we've seen this sub mat of sell off, particularly 21 00:01:01,400 --> 00:01:06,200 Speaker 1: and software stocks after the anthropic AI agent was announced 22 00:01:06,240 --> 00:01:09,200 Speaker 1: so how could that potentially affect the results we see 23 00:01:09,200 --> 00:01:10,840 Speaker 1: from Cisco particularly well. 24 00:01:10,840 --> 00:01:12,760 Speaker 3: I think the big question comes back to what is 25 00:01:12,840 --> 00:01:16,039 Speaker 3: management guide towards for the remainder of twenty twenty six 26 00:01:16,080 --> 00:01:20,520 Speaker 3: And everyone seemingly is marking down their software expectations. But 27 00:01:20,640 --> 00:01:23,000 Speaker 3: is a company like Cisco that makes the hardware and 28 00:01:23,080 --> 00:01:26,600 Speaker 3: is able to at least benefit from a huge push 29 00:01:26,640 --> 00:01:30,760 Speaker 3: of AI investments. The question will be is there actually capacity? 30 00:01:31,280 --> 00:01:33,640 Speaker 3: Is their capacity constraight and are we going to hit 31 00:01:33,680 --> 00:01:36,080 Speaker 3: a point where maybe some of these companies, the likes 32 00:01:36,080 --> 00:01:38,440 Speaker 3: of Meta and Google, who seemingly are not slowing down 33 00:01:38,440 --> 00:01:40,680 Speaker 3: on their investment, are we going to see that potentially 34 00:01:40,720 --> 00:01:43,440 Speaker 3: hidden inflection point or a peak and that'll be critical 35 00:01:43,480 --> 00:01:46,039 Speaker 3: for investors. But again, this is a stock that has 36 00:01:46,080 --> 00:01:49,400 Speaker 3: continued to rally over the last few days and weeks, 37 00:01:49,480 --> 00:01:52,040 Speaker 3: as opposed to, as we mentioned, the big sell off 38 00:01:52,040 --> 00:01:55,160 Speaker 3: that we've seen for anything that could lose out to 39 00:01:55,280 --> 00:01:57,480 Speaker 3: AI making their kind of software relevant. 40 00:01:57,640 --> 00:02:00,880 Speaker 1: Along with big Tech, we're waiting for earnings from Big Max. 41 00:02:01,160 --> 00:02:04,480 Speaker 1: What do we expect from McDonald's this week, Bailey, There's 42 00:02:04,560 --> 00:02:05,120 Speaker 1: a lot. 43 00:02:04,880 --> 00:02:09,400 Speaker 3: Of optimism about how how McDonald's is positioning benefiting from 44 00:02:09,680 --> 00:02:12,840 Speaker 3: tax rebates for the lower end consumer, benefiting potentially from 45 00:02:12,880 --> 00:02:16,440 Speaker 3: your upper and middle class down shifting some of their spending. 46 00:02:16,480 --> 00:02:18,280 Speaker 3: This is a company that, if you look at the 47 00:02:18,360 --> 00:02:20,240 Speaker 3: chart on a twelve month basis, looks a bit like 48 00:02:20,240 --> 00:02:22,680 Speaker 3: an EKG. But right now it's going to close at 49 00:02:22,680 --> 00:02:25,560 Speaker 3: another record high. So this is a lot of excitement 50 00:02:25,600 --> 00:02:27,760 Speaker 3: around their new offerings. It does seem like when you 51 00:02:27,800 --> 00:02:29,640 Speaker 3: talk to analysts or look through some of the notes, 52 00:02:29,760 --> 00:02:32,040 Speaker 3: this is one of the companies that could benefit as 53 00:02:32,080 --> 00:02:34,639 Speaker 3: a fast food operator, not only here in the US, 54 00:02:34,680 --> 00:02:37,680 Speaker 3: but globally speaking. So again, does it turn into to 55 00:02:37,720 --> 00:02:40,560 Speaker 3: your point of price perfection example remains to be seen, 56 00:02:40,560 --> 00:02:41,519 Speaker 3: but a lot of excitement. 57 00:02:41,680 --> 00:02:43,400 Speaker 1: So there are a lot of questions that aren't there 58 00:02:43,400 --> 00:02:47,440 Speaker 1: about whether the pivot, the return of the extra value 59 00:02:47,480 --> 00:02:52,160 Speaker 1: meal is going to eat into McDonald's margins potentially. 60 00:02:52,560 --> 00:02:54,880 Speaker 3: Well that's the question when you look at a company 61 00:02:55,440 --> 00:02:57,799 Speaker 3: like McDonald's, or you kind of look broadly speaking at 62 00:02:58,000 --> 00:03:00,799 Speaker 3: some of these companies who are needing to rethink their playbook, 63 00:03:00,960 --> 00:03:04,160 Speaker 3: does that impact margins and are investors willing to underwrite 64 00:03:04,200 --> 00:03:07,080 Speaker 3: maybe more narrow margins for actually a return to growth. 65 00:03:07,080 --> 00:03:10,520 Speaker 3: They're seemingly a bigger kind of beat on the top line. 66 00:03:10,520 --> 00:03:12,600 Speaker 3: But the questions do come back to your point. If 67 00:03:12,639 --> 00:03:14,600 Speaker 3: you're using better deals or trying to get people in 68 00:03:14,639 --> 00:03:17,560 Speaker 3: the door, and you're competing with other peers who are 69 00:03:17,600 --> 00:03:19,680 Speaker 3: catering towards people who don't want to spend up to 70 00:03:19,680 --> 00:03:22,440 Speaker 3: eat out or eat fast food, how does that ultimately 71 00:03:22,480 --> 00:03:25,160 Speaker 3: impact the bottom line. But it does seem like again, 72 00:03:25,720 --> 00:03:28,040 Speaker 3: at least the cell side is very optimistic, and I 73 00:03:28,080 --> 00:03:30,560 Speaker 3: do want to call out the fact that if investors 74 00:03:30,560 --> 00:03:34,160 Speaker 3: are rotating away from fast growing tech stocks, McDonald's is 75 00:03:34,200 --> 00:03:36,040 Speaker 3: not a bad place to park your money. And we've 76 00:03:36,040 --> 00:03:37,880 Speaker 3: been seeing that play out over the last few weeks. 77 00:03:38,320 --> 00:03:42,080 Speaker 1: And along with McDonald's and Cisco Systems, we're going to 78 00:03:42,120 --> 00:03:44,840 Speaker 1: get earnings as well from Tea Mobile on Wednesday. I 79 00:03:44,880 --> 00:03:47,720 Speaker 1: think we had some recent beats, didn't we from Verizon 80 00:03:47,800 --> 00:03:50,040 Speaker 1: and AT and T. Where does that leave the country's 81 00:03:50,080 --> 00:03:51,760 Speaker 1: most valuable cell phone provider. 82 00:03:52,080 --> 00:03:54,200 Speaker 3: It's kind of stuck in a rut. If you look 83 00:03:54,240 --> 00:03:57,240 Speaker 3: at the stock price right now on Team Mobile, really 84 00:03:57,320 --> 00:03:59,880 Speaker 3: move in sideways. Yes, it did rally from a low 85 00:04:00,560 --> 00:04:02,720 Speaker 3: at the end towards the end of January of one 86 00:04:02,800 --> 00:04:04,840 Speaker 3: hundred and eighty three dollars. But when you compare or 87 00:04:04,840 --> 00:04:07,880 Speaker 3: overlay their charts against AT and T to your point 88 00:04:08,000 --> 00:04:12,119 Speaker 3: or Verizon, those stocks look like rocket ships. Verizon over 89 00:04:12,160 --> 00:04:14,440 Speaker 3: the last week went from thirty about forty dollars a 90 00:04:14,480 --> 00:04:17,080 Speaker 3: share to forty seven dollars a share. On the flip side, 91 00:04:17,120 --> 00:04:20,240 Speaker 3: AT and T is up pretty sharply after rallying after 92 00:04:20,320 --> 00:04:23,400 Speaker 3: its results, So it does seem like investors maybe are 93 00:04:23,440 --> 00:04:26,000 Speaker 3: baking in some optimism. There was a bit of a lift, 94 00:04:26,040 --> 00:04:29,600 Speaker 3: which we typically do see with mobile or spectrum providers. 95 00:04:29,640 --> 00:04:32,240 Speaker 3: We do see with airlines when one company beats, people 96 00:04:32,279 --> 00:04:34,600 Speaker 3: get a bit more optimistic. But if we're looking at 97 00:04:34,600 --> 00:04:36,640 Speaker 3: a T Mobile stock that on the last twelve months 98 00:04:36,680 --> 00:04:39,200 Speaker 3: is down, it doesn't seem like investors are maybe giving 99 00:04:39,200 --> 00:04:42,919 Speaker 3: them the credit to benefit again from the optimism and 100 00:04:43,000 --> 00:04:46,120 Speaker 3: from what all intents and purposes, kind of looks like 101 00:04:46,160 --> 00:04:47,600 Speaker 3: a little bit like a rocket ship as much as 102 00:04:47,600 --> 00:04:50,120 Speaker 3: it could for a communication company. What we saw for 103 00:04:50,200 --> 00:04:53,440 Speaker 3: Verizon again rallying twelve percent last week after their results. 104 00:04:53,800 --> 00:04:56,520 Speaker 1: So what are the potential big growth drivers for T 105 00:04:56,720 --> 00:04:57,680 Speaker 1: Mobile in this quarter? 106 00:04:58,000 --> 00:05:00,400 Speaker 3: Well, the big focus is going to be on how 107 00:05:00,480 --> 00:05:04,040 Speaker 3: are they competing with AT and T With Verizon, can 108 00:05:04,080 --> 00:05:06,520 Speaker 3: they continue to compete on price. We all see the 109 00:05:06,640 --> 00:05:10,360 Speaker 3: Verizon ads about how if you can swap and they 110 00:05:10,400 --> 00:05:12,640 Speaker 3: can beat your price for a mobile provider. The big 111 00:05:12,680 --> 00:05:16,240 Speaker 3: other question is are they going to benefit potentially from 112 00:05:16,320 --> 00:05:20,479 Speaker 3: what we've seen play out with SpaceX's starlink direct to 113 00:05:20,480 --> 00:05:25,200 Speaker 3: consumer potentially from Starlink. The big question also is when 114 00:05:25,240 --> 00:05:28,400 Speaker 3: you look at these companies in their propensity to return capital, 115 00:05:28,400 --> 00:05:32,080 Speaker 3: whether that's buybax, whether that's through dividends, managements. Commentary around 116 00:05:32,120 --> 00:05:33,880 Speaker 3: that I think also will be closely watched. 117 00:05:35,120 --> 00:05:39,120 Speaker 2: The Stock Movers Report from Bloomberg Radio. 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