WEBVTT - Warner Bros Extends Gains; Adobe Rises; RH Slides

0:00:02.520 --> 0:00:09.960
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,

0:00:10.280 --> 0:00:13.440
<v Speaker 1>your roundup of companies making moves in the stock market,

0:00:13.680 --> 0:00:17.480
<v Speaker 1>harnessing the power of Bloomberg Data. Let's take a look

0:00:17.480 --> 0:00:20.040
<v Speaker 1>at some stocks on the move today. I'm Tom Keane

0:00:20.120 --> 0:00:22.920
<v Speaker 1>with David Gura and Bloomberg's Lisa Monteo.

0:00:23.480 --> 0:00:25.920
<v Speaker 2>Lisa, quickly, here a selected stock.

0:00:26.000 --> 0:00:27.120
<v Speaker 1>Look, you got it.

0:00:27.160 --> 0:00:30.040
<v Speaker 2>I want to start with Warner Brothers Discovery ticker WBD.

0:00:30.280 --> 0:00:32.120
<v Speaker 2>Their shares have been up as much as eight percent.

0:00:32.159 --> 0:00:35.840
<v Speaker 2>That's after yesterday's twenty nine percent rally. The reason why,

0:00:35.920 --> 0:00:39.200
<v Speaker 2>Source is saying David Elison's Paramount Skuidance planning a bid

0:00:39.240 --> 0:00:42.400
<v Speaker 2>for the seventy one billion dollar company. So what a

0:00:42.440 --> 0:00:45.320
<v Speaker 2>merger would do. It would trink Hollywood's major legacy studios

0:00:45.360 --> 0:00:47.520
<v Speaker 2>to four and it would unite some of the biggest

0:00:47.560 --> 0:00:51.200
<v Speaker 2>names of news, movies, TV. That said, it could also

0:00:51.320 --> 0:00:55.360
<v Speaker 2>face regulatory, financial, operational, investor hurdles. All of that and

0:00:55.400 --> 0:00:59.400
<v Speaker 2>possible even interference from President Trump. So something David Ellison

0:00:59.480 --> 0:01:01.920
<v Speaker 2>He's used to. He spent two years trying to get

0:01:01.920 --> 0:01:05.400
<v Speaker 2>his hands on Paramount Global before the takeover. Also, remember

0:01:05.440 --> 0:01:08.199
<v Speaker 2>Warner Brothers about to split into two right, one part

0:01:08.240 --> 0:01:12.039
<v Speaker 2>owning streaming and studio operations, the other cable channels like TNT.

0:01:12.520 --> 0:01:15.120
<v Speaker 2>But just something to think about on the consumer side,

0:01:15.160 --> 0:01:18.840
<v Speaker 2>So this deal would mean less competition for streaming. When

0:01:18.880 --> 0:01:23.000
<v Speaker 2>there's less competition, prices start to increase, so just keep

0:01:23.040 --> 0:01:25.120
<v Speaker 2>that in mind. I want to take you to software

0:01:25.160 --> 0:01:28.959
<v Speaker 2>maker Adobe ticker ADBE. Their shares have been out nearly

0:01:29.080 --> 0:01:33.200
<v Speaker 2>three percent strong quarterly revenue outlet boosted its annual forecast,

0:01:33.319 --> 0:01:36.840
<v Speaker 2>heavily investing in AI features for products like its Photoshop

0:01:36.840 --> 0:01:39.920
<v Speaker 2>that people are very familiar with the AI features, often

0:01:39.959 --> 0:01:44.080
<v Speaker 2>based on its own generative models, but annual recovering revenue

0:01:44.080 --> 0:01:47.520
<v Speaker 2>from AI influenced products it surpassed five billion. And that's

0:01:47.560 --> 0:01:50.840
<v Speaker 2>what investors like because they were worried if Adobe would

0:01:50.840 --> 0:01:53.360
<v Speaker 2>be able to make money from its AI from innovation,

0:01:53.520 --> 0:01:55.800
<v Speaker 2>so this was a big good news for them. And

0:01:55.840 --> 0:01:58.800
<v Speaker 2>it's facing a lot of competition from places like Canva

0:01:59.560 --> 0:02:01.600
<v Speaker 2>and AI native tools like mid Journey, so it has

0:02:01.640 --> 0:02:04.880
<v Speaker 2>a lot of competition. So that's on the upside, right,

0:02:04.880 --> 0:02:07.440
<v Speaker 2>But I also want to hit the downside. That's luxury

0:02:07.440 --> 0:02:10.359
<v Speaker 2>furniture retailer ourh who shares have been down as much

0:02:10.360 --> 0:02:13.800
<v Speaker 2>as twelve percent cut its revenue forecast for the year.

0:02:13.840 --> 0:02:16.840
<v Speaker 2>It pointed to growing impacts from tariffs a delay in

0:02:16.880 --> 0:02:20.799
<v Speaker 2>its seasonal catalog. It's CEO said something interesting. He gave

0:02:20.800 --> 0:02:23.240
<v Speaker 2>analyst some insight into what the industry needs to do

0:02:23.320 --> 0:02:25.360
<v Speaker 2>to stay afloat, and he said, you know what, we

0:02:25.400 --> 0:02:28.240
<v Speaker 2>need to offer discounts because of the weak housing market.

0:02:28.600 --> 0:02:31.240
<v Speaker 2>So OURH has tried different things. They have a membership

0:02:31.280 --> 0:02:34.640
<v Speaker 2>program offers lower prices to those who pay a fee,

0:02:34.680 --> 0:02:39.000
<v Speaker 2>a two hundred dollars annual fee. But I've known of OURH,

0:02:39.040 --> 0:02:40.920
<v Speaker 2>so I kind of checked on their website as to

0:02:41.040 --> 0:02:43.919
<v Speaker 2>how high these prices really are. And if you look

0:02:43.960 --> 0:02:47.120
<v Speaker 2>at the event dining table EVET dining table, it starts

0:02:47.120 --> 0:02:49.880
<v Speaker 2>at two four hundred and ninety five dollars. That's for

0:02:49.919 --> 0:02:53.119
<v Speaker 2>the dining table. If you want one chair, it'll cost

0:02:53.200 --> 0:02:55.919
<v Speaker 2>you about one one hundred and fifty dollars. So it's

0:02:56.000 --> 0:02:58.800
<v Speaker 2>it's high prices and the CEO is saying, you know,

0:02:58.919 --> 0:03:00.639
<v Speaker 2>we may have to start taking this down.

0:03:02.080 --> 0:03:06.320
<v Speaker 1>The Stockmover's report from Bloomberg Radio. Check back with us

0:03:06.320 --> 0:03:09.160
<v Speaker 1>throughout the day for the latest roundup of companies making

0:03:09.200 --> 0:03:12.840
<v Speaker 1>news on Wall Street and for the latest market moving headlines.

0:03:13.040 --> 0:03:17.040
<v Speaker 1>Listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg

0:03:17.080 --> 0:03:20.160
<v Speaker 1>dot com, and on Applecarplay and Android Auto with the

0:03:20.200 --> 0:03:21.560
<v Speaker 1>Bloomberg Business app.