WEBVTT - Disney Edges Lower; Cisco Surges; Alibaba Rallies

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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 take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Valerie Tytel on the

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<v Speaker 3>stock to watch this morning. Valerie certainly is the Walt

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<v Speaker 3>Disney Company. After earnings of very interesting reaction to what

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<v Speaker 3>the House of Mouse reported good morning.

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<v Speaker 1>We had Disney on a back foot, down three point

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<v Speaker 1>one percent after these earnings in the pre market. The

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<v Speaker 1>sales fell short of estimates, and they posted roughly flat

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<v Speaker 1>revenue and a declient in operating income during the previous quarter.

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<v Speaker 1>But another major worry for the path forward for Disney

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<v Speaker 1>is expenses. The entertainment company set a slate of big

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<v Speaker 1>budget films will weigh on expenses and results in the

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<v Speaker 1>next quarter. They cited expenses tied to the release of

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<v Speaker 1>Zootopia two and another Avatar movie will reduce earnings by

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<v Speaker 1>four hundred million. They also claimed that their theme park

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<v Speaker 1>and cruise unit will have an additional one hundred and

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<v Speaker 1>fifty million in expenses in the first quarter, tied to

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<v Speaker 1>new ships in dock work. Still, Disney is predicting that

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<v Speaker 1>the fiscal year twenty twenty six earnings will grow by

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<v Speaker 1>double digit percentage. However, those gains are going to be

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<v Speaker 1>weighted toward the later half of the year once these

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<v Speaker 1>expenses are worked through, So Disney shares on a back

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<v Speaker 1>foot after these worries over expenses, down round three percent

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<v Speaker 1>in the pre market.

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<v Speaker 3>Well, we're seeing a much more positive reaction to the

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<v Speaker 3>results we got from Cisco Systems after the close yesterday, Bowery.

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<v Speaker 1>Cisco is higher by nearly seven percent in the pre market.

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<v Speaker 1>The network equipment maker had boosted its twenty twenty six

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<v Speaker 1>forecast Nathan on the back of progress in capturing more

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<v Speaker 1>of the AI spending. This has really been a make

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<v Speaker 1>or break topic for tech companies this year on whether

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<v Speaker 1>these businesses are in the right place to capture the

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<v Speaker 1>AI boom. Cisco convey vans investors it was it needs

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<v Speaker 1>to rally another two percent today, actually, Nathan to breach

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<v Speaker 1>its dot com high of eighty two dollars a share.

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<v Speaker 1>We're trading at seventy nine at the moment, so watch

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<v Speaker 1>out for that.

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<v Speaker 3>Speaking of AI valerie, quite the headline coming down on

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<v Speaker 3>that story from Ali Baba.

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<v Speaker 1>Yeah, we're seeing the shares of Ali Baba head hire

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<v Speaker 1>in the pre market up four point two percent. The

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<v Speaker 1>Chinese e commerce giant is preparing to overhaul its main

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<v Speaker 1>mobile AI app to more resemble open AI's Chat GPT.

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<v Speaker 1>The revamp is also going to mark Ali Baba's biggest

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<v Speaker 1>move so far to try to ring revenue from more

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<v Speaker 1>consumer facing services in the app, like adding agentic AI features,

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<v Speaker 1>which is essentially having the AI do your shopping for

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<v Speaker 1>you in a way to monetize the technology. They do

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<v Speaker 1>want to turn it into a more fully functioning AI agent,

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<v Speaker 1>and they do plan to eventually expand globally with an

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<v Speaker 1>overseas version. So Alibaba ADR is headed higher after this

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<v Speaker 1>announcement about their revamp of four point two percent.

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<v Speaker 3>So after another sign of positivity around the artificial intelligence story,

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<v Speaker 3>we're getting a flip side on the other side of

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<v Speaker 3>maybe the K shaped market from Dollar Tree exactly.

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<v Speaker 1>Dollar Tree is suffering a double downgrade from Goldman Sachs.

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<v Speaker 1>The shares are lower this morning to the tune of

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<v Speaker 1>three percent. They did cite concerns about the lower end

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<v Speaker 1>consumer weighing on Dollar Trees earnings in the coming quarters.

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<v Speaker 1>Perhaps that is more evidence again that Wall Street is

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<v Speaker 1>really penciling in a weaker lower end consumer versus a

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<v Speaker 1>bustling top end consumer. Golden Sacks was also citing declining

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<v Speaker 1>consumer perception around Dollar Tree's price and value of their goods.

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<v Speaker 2>The Stock Mover's report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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<v Speaker 2>the Bloomberg Business app. Mm hmm