Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I'm Carol Messer along with Alexis Christophers in for Tim
Speaker 1: on this Thursday. Let's take look at some stocks in
Speaker 1: the move today, and with us is Bloomberg News Equities
Speaker 1: reporter at Alexandra Semenova alex Retailers. They've been front and center
Speaker 1: for the last couple of weeks reporting earnings. Dollar General
Speaker 1: at today, and.
Speaker 3: We're learning something about the macro picture with this stock,
Speaker 3: that consumers are hunting for bargain, so perhaps they're not
Speaker 3: doing as well as we're hearing at the headline level.
Speaker 3: Dollar General raised its full year outlook, a showing that
Speaker 3: value focused retailers are doing very well as people are
Speaker 3: looking for cheaper items. Their stock is rallying about twelve
Speaker 3: percent right now, so good for the company, but a
Speaker 3: sign that perhaps people are struggling with still very high costs.
Speaker 1: I think it's interest to you when you're looking for
Speaker 1: value and good deals at Dollar General, exactly.
Speaker 4: Dollar Tree yesterday came out with very good earnings and
Speaker 4: raised guidance and aren't they seeing higher income earners?
Speaker 2: They are?
Speaker 3: Yeah, And there another company that is kind of telling
Speaker 3: us something is Walmart. There was a really good point
Speaker 3: made today by Jim Paulson, veteran strategists. He said that
Speaker 3: when Walmart outperforms global luxury retailers, that's a sign that
Speaker 3: typically US consumption is not doing very well, and typically
Speaker 3: it proceeds slower GDP growth. So perhaps some of these
Speaker 3: low income focused names are a sign that maybe the
Speaker 3: economy is in.
Speaker 4: A little bit of Trump Tea leaves there.
Speaker 1: Exactly, all right, So Dollar General DG down twelve percent.
Speaker 1: I'm just taking a look at Walmart.
Speaker 4: It's flat today.
Speaker 1: But yeah, it's interesting to see that. In terms of
Speaker 1: the narrative, I want to go media.
Speaker 4: I mean, this bidding war for Warner Brothers Discovery is
Speaker 4: getting confusing, it's getting ugly. Paramount sky Dance now has
Speaker 4: something to say. They're accusing them right of not playing fair.
Speaker 3: Yeah, alex is getting ugly, is right, it's really contentious now. Paramount,
Speaker 3: one of the buyers buying for Warner Brothers, accused it
Speaker 3: of failing to conduct a fair auction. They sent a
Speaker 3: letter to CEO David Zaslov, saying that the company is
Speaker 3: not acting in shareholders best interests. Look at the stock today,
Speaker 3: it's down about one percent. In a response, Warner Brothers
Speaker 3: said it had shared the Paramount letter with its board.
Speaker 3: As we know, it has been officially put on sale
Speaker 3: in October after receiving an offer from p Paramount. It
Speaker 3: also has interest from Netflix, it has interest from comcasts.
Speaker 3: So it's been really heated and people are.
Speaker 4: And some are saying the Netflix is now the front
Speaker 4: runner and mostly cash, but we don't know for how
Speaker 4: much it apparently it is for the Paramount.
Speaker 3: See. Yeah, but apparently Paramount clearly disappointed here. They feel
Speaker 3: like they're not getting a.
Speaker 1: Fair when you brought up to you, like on our
Speaker 1: morning call, like do we know what the prices are?
Speaker 1: We don't know completely.
Speaker 4: There second numbers out, I mean, sixty billion was like
Speaker 4: the last thing I saw publicly, So it's going to
Speaker 4: be you would think worth of sixty billion exactly.
Speaker 3: It's changing every day. And also point out that Paramount
Speaker 3: is the only one of them that is actually trying
Speaker 3: to take over the entire company, so it wants to
Speaker 3: buy it's CNN exactly.
Speaker 1: Yeah, let's remind everybody Warner Brothers Discovery right now is
Speaker 1: a sixty billion dollar market cap company.
Speaker 4: So they're looking for a little premium. Give them some
Speaker 4: premium paramount. Also raised the breakup fee to five billion
Speaker 4: dollars from a billion, so they're basically saying, look, we
Speaker 4: think we're going to get regulatory approval if you guys
Speaker 4: choose us.
Speaker 3: Yeah, lots of big numbers.
Speaker 1: Yeah, all right, MENA certainly a company we've been talking
Speaker 1: about a lot today and it's higher.
Speaker 3: This one is interesting because, as we know, Facebook rebranded
Speaker 3: to be meta platforms, and here they are saying that
Speaker 3: they're going to cut resources for building out the so
Speaker 3: called metaverse that hasn't served them well. Where Zuckerberg seems
Speaker 3: to want to scale back on this business endeavor. He
Speaker 3: once framed this as the future of the company. It
Speaker 3: was all about the metaverse, and then we kind of
Speaker 3: stopped hearing about it in the last few years. Executives
Speaker 3: are a parent only a considering potential budget cuts of
Speaker 3: as high as thirty percent for this part of the business,
Speaker 3: and they could see layoffs as soon as January. Apparently,
Speaker 3: these discussions were had in a closed meeting at Mark
Speaker 3: Zuckerberg's compound in Hawaii as they were deciding budget plans.
Speaker 1: You're going to have a meeting, why not do it there?
Speaker 3: I mean sign me up investors feels a little Yeah,
Speaker 3: investors clearly like the news. Do The stock is up
Speaker 3: three point five percent right now.
Speaker 1: Got to say an incredible scoop and exclusive by our
Speaker 1: own Kurt Wagner.
Speaker 3: It's incredibly good story. But it's something we talked.
Speaker 1: About too that you know, investors in analysts have kind
Speaker 1: of wanted this.
Speaker 3: So it's the companies say, maybe really generating much for them, So.
Speaker 4: It's anything they thought it was a drag on resources.
Speaker 4: But I guess in a coup for Meta yesterday they
Speaker 4: stole away an Apple design exec. Right.
Speaker 3: Yeah, that's another interesting to see some of the hiring
Speaker 3: going on between these Mac seven companies just poaching talent.
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