WEBVTT - Dell Rises, AppLovin Falls, Dollar Tree Drops After Jefferies Downgrade

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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 3>Let's bring in Christina Quino and take a look at

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<v Speaker 3>some stocks on the move today. Paulsweni here with Scarlett

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<v Speaker 3>Foo and of course our Christina Quino does this for

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<v Speaker 3>us on a daily basis. And Christine, I look at

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<v Speaker 3>Dell and the shares are at the Hyacins May of

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<v Speaker 3>twenty twenty four last year.

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<v Speaker 1>Yeah, absolutely, Scarlet, I mean that's getting definitely a windfall

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<v Speaker 1>from that deal. So Dell shares dig or d LL

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<v Speaker 1>shares now up just two point six percent, though, so

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<v Speaker 1>prying some of those strong opening gains. And so you

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<v Speaker 1>can kind of get a sense that, Okay, now we've

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<v Speaker 1>gotten the news of their improved long term financial framework,

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<v Speaker 1>investors are maybe starting to question what's the catch, right?

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<v Speaker 1>And you know, the catch is that there is some

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<v Speaker 1>concern that the cost of rolling out the equipment is

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<v Speaker 1>going to be expensive, and so the question for investors

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<v Speaker 1>is what's going to happen to profit margins? And so

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<v Speaker 1>Chief operating Officer Jeff Clark is meant to be reinforcing

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<v Speaker 1>at their investor event today that you know, the air

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<v Speaker 1>server business is facing mid single digit operating margins, but

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<v Speaker 1>even our Bloomberg Intelligence analysts are saying that they will

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<v Speaker 1>still need to show improvement on those server margins. Operating

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<v Speaker 1>scale and buybacks will help, but that's something that investors

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<v Speaker 1>are looking for at the moment with this monster deal.

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<v Speaker 2>What's going on with app love It at.

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<v Speaker 1>Loven so app love and shares to her app those

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<v Speaker 1>are up at the moment. They're rebounding now more than

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<v Speaker 1>six point seven percent currently, but they did fall fourteen

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<v Speaker 1>percent yesterday, and that is because just before the close,

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<v Speaker 1>Bloomberg News exclusively reported that there are sources saying the

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<v Speaker 1>Securities Exchange Commission has been probing the company for its

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<v Speaker 1>data collection practices, and so the agency specifically looking into

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<v Speaker 1>allegations that app love and violated platform partners service agreements

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<v Speaker 1>to push more targeted advertising to customers. App Levin did

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<v Speaker 1>decline to comment. They say that it's generally not speaking

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<v Speaker 1>on any potential regulatory matters. So getting a bit of

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<v Speaker 1>a rebound after that big drop yesterday, but watch the

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<v Speaker 1>space for more developments in that case.

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<v Speaker 3>Okay, and Christine. We're also looking at Dollar Tree in

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<v Speaker 3>the retail space.

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<v Speaker 1>Absolutely Scarl's a Dollar Tree ticker DLTR. Those chares not

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<v Speaker 1>doing so well at the moment, down two point nine percent,

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<v Speaker 1>and I'm seeing on the Bloomberg that that is the

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<v Speaker 1>fifth straight day of declines. There. We did see a

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<v Speaker 1>pair of analyst cuts to start the WII for Dollar Tree.

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<v Speaker 1>Jeffrey's downgraded the retailer to underperform from hold. Analysts are

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<v Speaker 1>citing inflation management decisions and terariffs as some of the

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<v Speaker 1>reasons why it is now a more complex environment for

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<v Speaker 1>Dollar Tree. They're also citing specifically rising competitive intensity and

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<v Speaker 1>a disadvantage from Walmart because of course the big box

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<v Speaker 1>retailer very much competing in terms of low prices. And

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<v Speaker 1>then of course we also got Bernstein cutting their part

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<v Speaker 1>start for Dollar Tree to one hundred from one hundred

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<v Speaker 1>and nine. Still maintaining our.

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