1
00:00:02,520 --> 00:00:07,000
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:08,560 --> 00:00:12,440
Speaker 2: The Stock Movers report, your roundup of companies making moves

3
00:00:12,480 --> 00:00:15,880
Speaker 2: in the stock market. Harnessing the power of Bloomberg Data.

4
00:00:16,680 --> 00:00:18,640
Speaker 3: Let's take a look at some stocks on the move today.

5
00:00:18,680 --> 00:00:21,720
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Tytel on the

6
00:00:21,760 --> 00:00:24,680
Speaker 3: stock to watch this morning. Valerie certainly is the Walt

7
00:00:24,760 --> 00:00:28,520
Speaker 3: Disney Company. After earnings of very interesting reaction to what

8
00:00:28,600 --> 00:00:31,120
Speaker 3: the House of Mouse reported good morning.

9
00:00:30,920 --> 00:00:34,000
Speaker 1: We had Disney on a back foot, down three point

10
00:00:34,040 --> 00:00:36,800
Speaker 1: one percent after these earnings in the pre market. The

11
00:00:36,920 --> 00:00:40,360
Speaker 1: sales fell short of estimates, and they posted roughly flat

12
00:00:40,400 --> 00:00:44,280
Speaker 1: revenue and a declient in operating income during the previous quarter.

13
00:00:44,360 --> 00:00:47,559
Speaker 1: But another major worry for the path forward for Disney

14
00:00:47,680 --> 00:00:51,840
Speaker 1: is expenses. The entertainment company set a slate of big

15
00:00:51,920 --> 00:00:55,320
Speaker 1: budget films will weigh on expenses and results in the

16
00:00:55,360 --> 00:00:58,920
Speaker 1: next quarter. They cited expenses tied to the release of

17
00:00:59,000 --> 00:01:03,319
Speaker 1: Zootopia two and another Avatar movie will reduce earnings by

18
00:01:03,400 --> 00:01:07,800
Speaker 1: four hundred million. They also claimed that their theme park

19
00:01:07,840 --> 00:01:10,080
Speaker 1: and cruise unit will have an additional one hundred and

20
00:01:10,120 --> 00:01:13,640
Speaker 1: fifty million in expenses in the first quarter, tied to

21
00:01:13,720 --> 00:01:17,720
Speaker 1: new ships in dock work. Still, Disney is predicting that

22
00:01:17,800 --> 00:01:20,479
Speaker 1: the fiscal year twenty twenty six earnings will grow by

23
00:01:20,480 --> 00:01:23,800
Speaker 1: double digit percentage. However, those gains are going to be

24
00:01:23,840 --> 00:01:26,039
Speaker 1: weighted toward the later half of the year once these

25
00:01:26,080 --> 00:01:29,240
Speaker 1: expenses are worked through, So Disney shares on a back

26
00:01:29,280 --> 00:01:31,880
Speaker 1: foot after these worries over expenses, down round three percent

27
00:01:31,920 --> 00:01:32,639
Speaker 1: in the pre market.

28
00:01:32,760 --> 00:01:35,120
Speaker 3: Well, we're seeing a much more positive reaction to the

29
00:01:35,120 --> 00:01:39,000
Speaker 3: results we got from Cisco Systems after the close yesterday, Bowery.

30
00:01:39,000 --> 00:01:43,000
Speaker 1: Cisco is higher by nearly seven percent in the pre market.

31
00:01:43,080 --> 00:01:46,560
Speaker 1: The network equipment maker had boosted its twenty twenty six

32
00:01:46,640 --> 00:01:50,040
Speaker 1: forecast Nathan on the back of progress in capturing more

33
00:01:50,200 --> 00:01:52,720
Speaker 1: of the AI spending. This has really been a make

34
00:01:52,800 --> 00:01:55,640
Speaker 1: or break topic for tech companies this year on whether

35
00:01:55,720 --> 00:01:58,080
Speaker 1: these businesses are in the right place to capture the

36
00:01:58,120 --> 00:02:02,080
Speaker 1: AI boom. Cisco convey vans investors it was it needs

37
00:02:02,080 --> 00:02:05,880
Speaker 1: to rally another two percent today, actually, Nathan to breach

38
00:02:05,960 --> 00:02:08,959
Speaker 1: its dot com high of eighty two dollars a share.

39
00:02:09,000 --> 00:02:11,240
Speaker 1: We're trading at seventy nine at the moment, so watch

40
00:02:11,240 --> 00:02:11,680
Speaker 1: out for that.

41
00:02:12,320 --> 00:02:15,560
Speaker 3: Speaking of AI valerie, quite the headline coming down on

42
00:02:15,919 --> 00:02:17,720
Speaker 3: that story from Ali Baba.

43
00:02:18,080 --> 00:02:20,320
Speaker 1: Yeah, we're seeing the shares of Ali Baba head hire

44
00:02:20,360 --> 00:02:22,880
Speaker 1: in the pre market up four point two percent. The

45
00:02:23,040 --> 00:02:27,320
Speaker 1: Chinese e commerce giant is preparing to overhaul its main

46
00:02:27,560 --> 00:02:31,720
Speaker 1: mobile AI app to more resemble open AI's Chat GPT.

47
00:02:32,360 --> 00:02:35,960
Speaker 1: The revamp is also going to mark Ali Baba's biggest

48
00:02:36,000 --> 00:02:39,120
Speaker 1: move so far to try to ring revenue from more

49
00:02:39,160 --> 00:02:43,400
Speaker 1: consumer facing services in the app, like adding agentic AI features,

50
00:02:43,440 --> 00:02:47,040
Speaker 1: which is essentially having the AI do your shopping for

51
00:02:47,120 --> 00:02:50,280
Speaker 1: you in a way to monetize the technology. They do

52
00:02:50,320 --> 00:02:53,079
Speaker 1: want to turn it into a more fully functioning AI agent,

53
00:02:53,200 --> 00:02:56,080
Speaker 1: and they do plan to eventually expand globally with an

54
00:02:56,200 --> 00:02:59,480
Speaker 1: overseas version. So Alibaba ADR is headed higher after this

55
00:02:59,520 --> 00:03:02,000
Speaker 1: announcement about their revamp of four point two percent.

56
00:03:02,320 --> 00:03:06,880
Speaker 3: So after another sign of positivity around the artificial intelligence story,

57
00:03:06,919 --> 00:03:09,640
Speaker 3: we're getting a flip side on the other side of

58
00:03:09,720 --> 00:03:13,920
Speaker 3: maybe the K shaped market from Dollar Tree exactly.

59
00:03:14,160 --> 00:03:17,440
Speaker 1: Dollar Tree is suffering a double downgrade from Goldman Sachs.

60
00:03:17,520 --> 00:03:19,760
Speaker 1: The shares are lower this morning to the tune of

61
00:03:19,880 --> 00:03:24,200
Speaker 1: three percent. They did cite concerns about the lower end

62
00:03:24,400 --> 00:03:27,840
Speaker 1: consumer weighing on Dollar Trees earnings in the coming quarters.

63
00:03:27,880 --> 00:03:30,239
Speaker 1: Perhaps that is more evidence again that Wall Street is

64
00:03:30,280 --> 00:03:33,920
Speaker 1: really penciling in a weaker lower end consumer versus a

65
00:03:33,960 --> 00:03:38,920
Speaker 1: bustling top end consumer. Golden Sacks was also citing declining

66
00:03:38,960 --> 00:03:44,160
Speaker 1: consumer perception around Dollar Tree's price and value of their goods.

67
00:03:45,000 --> 00:03:49,040
Speaker 2: The Stock Mover's report from Bloomberg Radio. Check back with

68
00:03:49,120 --> 00:03:51,680
Speaker 2: us throughout the day for the latest roundup of companies

69
00:03:51,760 --> 00:03:54,840
Speaker 2: making news on Wall Street and for the latest market

70
00:03:54,880 --> 00:03:59,360
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

71
00:03:59,400 --> 00:04:02,960
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with

72
00:04:03,040 --> 00:04:09,240
Speaker 2: the Bloomberg Business app. Mm hmm