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 3: Let's take a look at some stocks on the move today.
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Tytel on the
Speaker 3: stock to watch this morning. Valerie certainly is the Walt
Speaker 3: Disney Company. After earnings of very interesting reaction to what
Speaker 3: the House of Mouse reported good morning.
Speaker 1: We had Disney on a back foot, down three point
Speaker 1: one percent after these earnings in the pre market. The
Speaker 1: sales fell short of estimates, and they posted roughly flat
Speaker 1: revenue and a declient in operating income during the previous quarter.
Speaker 1: But another major worry for the path forward for Disney
Speaker 1: is expenses. The entertainment company set a slate of big
Speaker 1: budget films will weigh on expenses and results in the
Speaker 1: next quarter. They cited expenses tied to the release of
Speaker 1: Zootopia two and another Avatar movie will reduce earnings by
Speaker 1: four hundred million. They also claimed that their theme park
Speaker 1: and cruise unit will have an additional one hundred and
Speaker 1: fifty million in expenses in the first quarter, tied to
Speaker 1: new ships in dock work. Still, Disney is predicting that
Speaker 1: the fiscal year twenty twenty six earnings will grow by
Speaker 1: double digit percentage. However, those gains are going to be
Speaker 1: weighted toward the later half of the year once these
Speaker 1: expenses are worked through, So Disney shares on a back
Speaker 1: foot after these worries over expenses, down round three percent
Speaker 1: in the pre market.
Speaker 3: Well, we're seeing a much more positive reaction to the
Speaker 3: results we got from Cisco Systems after the close yesterday, Bowery.
Speaker 1: Cisco is higher by nearly seven percent in the pre market.
Speaker 1: The network equipment maker had boosted its twenty twenty six
Speaker 1: forecast Nathan on the back of progress in capturing more
Speaker 1: of the AI spending. This has really been a make
Speaker 1: or break topic for tech companies this year on whether
Speaker 1: these businesses are in the right place to capture the
Speaker 1: AI boom. Cisco convey vans investors it was it needs
Speaker 1: to rally another two percent today, actually, Nathan to breach
Speaker 1: its dot com high of eighty two dollars a share.
Speaker 1: We're trading at seventy nine at the moment, so watch
Speaker 1: out for that.
Speaker 3: Speaking of AI valerie, quite the headline coming down on
Speaker 3: that story from Ali Baba.
Speaker 1: Yeah, we're seeing the shares of Ali Baba head hire
Speaker 1: in the pre market up four point two percent. The
Speaker 1: Chinese e commerce giant is preparing to overhaul its main
Speaker 1: mobile AI app to more resemble open AI's Chat GPT.
Speaker 1: The revamp is also going to mark Ali Baba's biggest
Speaker 1: move so far to try to ring revenue from more
Speaker 1: consumer facing services in the app, like adding agentic AI features,
Speaker 1: which is essentially having the AI do your shopping for
Speaker 1: you in a way to monetize the technology. They do
Speaker 1: want to turn it into a more fully functioning AI agent,
Speaker 1: and they do plan to eventually expand globally with an
Speaker 1: overseas version. So Alibaba ADR is headed higher after this
Speaker 1: announcement about their revamp of four point two percent.
Speaker 3: So after another sign of positivity around the artificial intelligence story,
Speaker 3: we're getting a flip side on the other side of
Speaker 3: maybe the K shaped market from Dollar Tree exactly.
Speaker 1: Dollar Tree is suffering a double downgrade from Goldman Sachs.
Speaker 1: The shares are lower this morning to the tune of
Speaker 1: three percent. They did cite concerns about the lower end
Speaker 1: consumer weighing on Dollar Trees earnings in the coming quarters.
Speaker 1: Perhaps that is more evidence again that Wall Street is
Speaker 1: really penciling in a weaker lower end consumer versus a
Speaker 1: bustling top end consumer. Golden Sacks was also citing declining
Speaker 1: consumer perception around Dollar Tree's price and value of their goods.
Speaker 2: The Stock Mover's report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
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