1 00:00:02,560 --> 00:00:10,480 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast, 2 00:00:10,840 --> 00:00:14,080 Speaker 1: your roundup of companies making moves in the stock market 3 00:00:14,280 --> 00:00:16,520 Speaker 1: harnessing the power of Bloomberg data. 4 00:00:17,960 --> 00:00:19,760 Speaker 2: Let's take a look at some of the stocks on 5 00:00:19,800 --> 00:00:23,800 Speaker 2: the move today. We're joined by Bloomberg Natalia Kenny Jaevich, Natali, 6 00:00:23,840 --> 00:00:24,360 Speaker 2: what are you looking at? 7 00:00:24,520 --> 00:00:26,720 Speaker 3: Good to stick with consumers as we see that data 8 00:00:26,840 --> 00:00:30,400 Speaker 3: is kind of deteriorating. One consumer stock that isn't focuses, 9 00:00:30,480 --> 00:00:34,840 Speaker 3: of course, Lulu Lemon. Results for the first quarter, fourth 10 00:00:34,960 --> 00:00:37,320 Speaker 3: quarter were a little bit better, but the company provided 11 00:00:37,440 --> 00:00:40,680 Speaker 3: really weak outlook not just for the first quarter but 12 00:00:41,200 --> 00:00:45,040 Speaker 3: the whole year. The stock is down by fourteen percent, 13 00:00:46,200 --> 00:00:49,040 Speaker 3: so all metrics like sales for the whole year were 14 00:00:49,280 --> 00:00:52,720 Speaker 3: lower than expected. CEO and the management on the call 15 00:00:52,880 --> 00:00:57,440 Speaker 3: say are saying that customers are visiting less stores, they're 16 00:00:57,440 --> 00:01:01,720 Speaker 3: becoming more selective, and they at the side, the management 17 00:01:01,800 --> 00:01:07,360 Speaker 3: is trying to work more closely with other groups of products. 18 00:01:07,360 --> 00:01:13,000 Speaker 3: They are trying to expand expand their presence across sectors 19 00:01:13,080 --> 00:01:16,520 Speaker 3: like golf, tennis, and running. So it is one of 20 00:01:16,560 --> 00:01:18,800 Speaker 3: the stocks that isn't focused. And of course we saw 21 00:01:18,880 --> 00:01:22,160 Speaker 3: couple analysts downgrades based on those reports. 22 00:01:22,319 --> 00:01:24,720 Speaker 4: It's interesting because when people think about Lululemon, they have 23 00:01:24,880 --> 00:01:27,920 Speaker 4: such a strong customer base, like they have really loyal 24 00:01:27,959 --> 00:01:31,000 Speaker 4: filing following. People honestly sometimes use them as recession proof 25 00:01:31,080 --> 00:01:33,520 Speaker 4: because people are so interested in their clothing. But we 26 00:01:33,520 --> 00:01:36,400 Speaker 4: see shares of the company down twenty four percent this year. 27 00:01:36,640 --> 00:01:39,320 Speaker 3: Exactly, and China is actually still the strongest market, but 28 00:01:39,400 --> 00:01:41,520 Speaker 3: one of the strongest markets, I should say, So we 29 00:01:41,560 --> 00:01:42,440 Speaker 3: will see how this story. 30 00:01:42,720 --> 00:01:46,120 Speaker 2: Guess you guys are Lemon people. I'm not same. 31 00:01:46,520 --> 00:01:49,440 Speaker 3: I'm just like very old introdied. I still keep buying 32 00:01:49,480 --> 00:01:51,880 Speaker 3: like Nike and like brands that I used to buy 33 00:01:52,160 --> 00:01:54,400 Speaker 3: in the past. So yeah, I. 34 00:01:54,480 --> 00:01:56,560 Speaker 4: Haven't gotten me yet. Who don't see you keeping an 35 00:01:56,560 --> 00:01:56,840 Speaker 4: eye on? 36 00:01:58,600 --> 00:02:02,480 Speaker 3: Yes? So, of course us still Nippon, So we see 37 00:02:02,480 --> 00:02:05,480 Speaker 3: that Nippon shares are moving down sharply, of course, on 38 00:02:05,560 --> 00:02:10,680 Speaker 3: reports that the company is increasing its bid for investments 39 00:02:10,760 --> 00:02:13,160 Speaker 3: in US still now, some reports are saying that the 40 00:02:13,200 --> 00:02:17,720 Speaker 3: company plans to invest seven billion dollars. This is much 41 00:02:18,080 --> 00:02:21,960 Speaker 3: higher than a two point seven billion initial offer. Of course, 42 00:02:22,000 --> 00:02:24,520 Speaker 3: both companies are trying to secure the deal. We also 43 00:02:24,600 --> 00:02:27,919 Speaker 3: know that Nippon executives are in Washington now meeting with 44 00:02:28,120 --> 00:02:33,000 Speaker 3: US White House officials and trying to again secure approval 45 00:02:33,120 --> 00:02:35,760 Speaker 3: for this deal. But we know that President own Trump 46 00:02:35,800 --> 00:02:39,040 Speaker 3: said that he is opposed to this takeover unless maybe 47 00:02:39,200 --> 00:02:42,680 Speaker 3: Japanese company will just take a minority stake in the 48 00:02:42,760 --> 00:02:43,520 Speaker 3: US company. 49 00:02:43,919 --> 00:02:46,920 Speaker 2: I mean, I don't know how to handicap this deal. 50 00:02:47,000 --> 00:02:49,639 Speaker 2: I mean, I I think it feels like if the 51 00:02:49,720 --> 00:02:51,880 Speaker 2: US government wants it to happen, it will happen. Maybe 52 00:02:51,880 --> 00:02:55,520 Speaker 2: because the economics are I guess there. But we have 53 00:02:55,600 --> 00:02:58,520 Speaker 2: the Trump administration at this point still not supporting it 54 00:02:58,600 --> 00:02:59,720 Speaker 2: right exactly. 55 00:02:59,760 --> 00:03:02,920 Speaker 3: But also I feel now we are operating in an 56 00:03:03,000 --> 00:03:06,840 Speaker 3: environment where macro factors matter so much more. Yes, we 57 00:03:06,960 --> 00:03:10,919 Speaker 3: may see some initial reaction if it still happens eventually 58 00:03:11,360 --> 00:03:15,000 Speaker 3: in both stock prices, but now we know that macro 59 00:03:15,200 --> 00:03:19,000 Speaker 3: economic environment, tariffs, they matter much more, and we'll see 60 00:03:19,000 --> 00:03:21,720 Speaker 3: how this plays out. No matter again, this deal happens 61 00:03:21,800 --> 00:03:22,000 Speaker 3: or not. 62 00:03:22,160 --> 00:03:24,959 Speaker 2: Are you a story out hedge funds scoop up cyclical 63 00:03:25,000 --> 00:03:29,840 Speaker 2: stocks as tarf fear swirl. I talk to us about that, 64 00:03:29,840 --> 00:03:30,640 Speaker 2: what's happening there? 65 00:03:30,800 --> 00:03:31,000 Speaker 1: Yes? 66 00:03:31,200 --> 00:03:35,120 Speaker 3: So, of course, when we started hearing more from President 67 00:03:35,160 --> 00:03:41,200 Speaker 3: Trump about these tariffs, the most exposed types of stocks 68 00:03:41,560 --> 00:03:45,320 Speaker 3: to tariffs and to potentially weakening economic environment are the 69 00:03:45,360 --> 00:03:50,760 Speaker 3: so called cyclical stocks financials, materials, energy, and we did 70 00:03:50,800 --> 00:03:54,680 Speaker 3: see a really significant decline now when those stocks dropped 71 00:03:54,720 --> 00:03:57,280 Speaker 3: to one of the most over sold levels we've seen 72 00:03:57,320 --> 00:04:01,160 Speaker 3: in the past. We did see that fast money like 73 00:04:01,240 --> 00:04:04,760 Speaker 3: hedge funds starting buying those stocks. And maybe it's a 74 00:04:04,800 --> 00:04:07,880 Speaker 3: tactical play. But some people are saying two things like, 75 00:04:07,920 --> 00:04:10,120 Speaker 3: first of all, yes, it can be just a trade, 76 00:04:10,280 --> 00:04:13,560 Speaker 3: not long term investment, because you can buy those stocks 77 00:04:13,600 --> 00:04:16,800 Speaker 3: at the cheaper levels. At the same time, some hedge 78 00:04:16,800 --> 00:04:19,560 Speaker 3: funds butchers are saying, yes, Donald Trump is getting much 79 00:04:19,560 --> 00:04:22,560 Speaker 3: more targeted in terms of his tariffs and some of 80 00:04:22,600 --> 00:04:26,880 Speaker 3: those stocks like financial energy will be less impacted. So 81 00:04:27,000 --> 00:04:30,520 Speaker 3: this is a good de buying opportunity for some fast money. 82 00:04:30,880 --> 00:04:32,599 Speaker 4: So how are you thinking, How are they thinking about 83 00:04:32,600 --> 00:04:35,200 Speaker 4: the same comparison to some of those defensive names that 84 00:04:35,279 --> 00:04:37,520 Speaker 4: you would typically expect them to go towards. 85 00:04:37,279 --> 00:04:39,719 Speaker 3: Exactly, And on the opposite side, we do see that 86 00:04:39,880 --> 00:04:43,600 Speaker 3: hedge funds are selling some of those defensive names. So 87 00:04:43,839 --> 00:04:46,400 Speaker 3: basically we track data on a weekly basis, we will 88 00:04:46,400 --> 00:04:49,040 Speaker 3: see this week will also be really important. I will 89 00:04:49,080 --> 00:04:51,280 Speaker 3: keep an eye on hedge funds, prime brokerage data, and 90 00:04:52,000 --> 00:04:53,520 Speaker 3: I'm happy to keep you posted guys. 91 00:04:53,680 --> 00:04:57,960 Speaker 2: Right what I'm looking at today is core Weave IPO 92 00:04:58,120 --> 00:05:01,400 Speaker 2: priced last night forty dollars a shiit a little bit 93 00:05:01,440 --> 00:05:05,440 Speaker 2: of a play on AI. The deal was downsized, I 94 00:05:05,440 --> 00:05:09,839 Speaker 2: would say, materially and arguably due to market conditions, maybe 95 00:05:09,880 --> 00:05:13,080 Speaker 2: just some concern about the AI story, but they priced 96 00:05:13,080 --> 00:05:16,920 Speaker 2: it forty. It still has not yet opened here as 97 00:05:16,960 --> 00:05:20,559 Speaker 2: of yet, it is indicated at a price of fifty, 98 00:05:20,600 --> 00:05:23,360 Speaker 2: which would be a nice pop on the open here. 99 00:05:23,680 --> 00:05:26,280 Speaker 2: But this is an important I think a stock h 100 00:05:26,440 --> 00:05:29,919 Speaker 2: just for the IPOs market in general, and it's also 101 00:05:30,080 --> 00:05:31,960 Speaker 2: for the kind of the AI story a little bit 102 00:05:32,000 --> 00:05:33,160 Speaker 2: more specifically exactly. 103 00:05:33,240 --> 00:05:35,159 Speaker 3: So we are keeping a very close eye on Core 104 00:05:35,200 --> 00:05:39,120 Speaker 3: we In the beginning when we learned about this filing, 105 00:05:39,880 --> 00:05:43,840 Speaker 3: sentiment was really strong. People we spoke with were saying yes. 106 00:05:44,160 --> 00:05:46,320 Speaker 3: And also it happened just in the middle of this 107 00:05:46,400 --> 00:05:49,800 Speaker 3: market turmoil, and people were saying yes. When a company 108 00:05:49,800 --> 00:05:52,880 Speaker 3: has really strong fundamentals like Core we they have really 109 00:05:52,880 --> 00:05:57,640 Speaker 3: big clients, a strong revenue flow, it doesn't matter. It 110 00:05:57,680 --> 00:06:00,479 Speaker 3: can basically survive even if it files and opens in 111 00:06:00,520 --> 00:06:02,920 Speaker 3: the middle of the market's route. Now, we do see 112 00:06:02,920 --> 00:06:06,000 Speaker 3: that the company has reduced right it's size of this IPO. 113 00:06:06,120 --> 00:06:09,240 Speaker 3: Potentially there is lower demand and as you mentioned, we 114 00:06:09,360 --> 00:06:12,839 Speaker 3: see more more and more like kind of concerns about 115 00:06:12,839 --> 00:06:15,040 Speaker 3: this AI PLAYAI infrastructure. 116 00:06:16,480 --> 00:06:20,599 Speaker 1: The Stock Movers podcast from Bloomberg Radio. Check back with 117 00:06:20,720 --> 00:06:23,479 Speaker 1: us throughout the day for the latest roundup of companies 118 00:06:23,520 --> 00:06:26,560 Speaker 1: making news on Wall Street and for the latest market 119 00:06:26,560 --> 00:06:30,919 Speaker 1: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 120 00:06:31,000 --> 00:06:34,240 Speaker 1: Bloomberg dot com, and on Applecarplay and Android Auto with 121 00:06:34,320 --> 00:06:35,760 Speaker 1: the Bloomberg Business app.