WEBVTT - Apple Slips, Dollar Tree Rises, MicroStrategy Falls on Tariff Concerns

0:00:02.520 --> 0:00:09.040
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

0:00:08.880 --> 0:00:13.160
<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

0:00:13.200 --> 0:00:16.640
<v Speaker 2>the stock market, harnessing the power of Bloomberg.

0:00:16.200 --> 0:00:18.520
<v Speaker 3>Data, take a look at some of the stocks on

0:00:18.560 --> 0:00:21.200
<v Speaker 3>the move today. We're joined by Bloomberg with Isabelle Lee

0:00:21.360 --> 0:00:22.960
<v Speaker 3>of Bloomberg Cross Asset Reporter.

0:00:23.280 --> 0:00:24.919
<v Speaker 4>Let's kick it off again with Apple here.

0:00:25.400 --> 0:00:27.800
<v Speaker 1>So for Apple, it's not moving crazy, it's still edging

0:00:27.840 --> 0:00:30.640
<v Speaker 1>lower by two and a half percent. So Apple's price

0:00:30.680 --> 0:00:33.959
<v Speaker 1>target was cut from three twenty five to two point

0:00:33.960 --> 0:00:36.760
<v Speaker 1>fifty by Webbush. So webbushdims, as we know, is one

0:00:36.760 --> 0:00:39.280
<v Speaker 1>of the biggest tech poles. His cites of Trump administration's

0:00:39.320 --> 0:00:43.199
<v Speaker 1>tireff policies basically, and he said the economic armageddon unleashed

0:00:43.200 --> 0:00:45.360
<v Speaker 1>by this will be a complete disaster for Apple, who

0:00:45.400 --> 0:00:48.320
<v Speaker 1>really has a massive production in China. I may recall

0:00:48.400 --> 0:00:51.240
<v Speaker 1>that the current tariffs slates China at around fifty four percent,

0:00:51.440 --> 0:00:53.720
<v Speaker 1>Taiwan around thirty two percent. So it also produces and

0:00:53.760 --> 0:00:56.840
<v Speaker 1>manufactures some stuff in a lot of those Asian nations,

0:00:56.880 --> 0:00:59.680
<v Speaker 1>and the two will be devastating for Apple. It's cost structure,

0:01:00.080 --> 0:01:03.160
<v Speaker 1>consumer demand. But he still has an outperform rating. So

0:01:03.200 --> 0:01:04.360
<v Speaker 1>there is that silver lining.

0:01:04.920 --> 0:01:07.880
<v Speaker 5>Okay, I mean he's he is the permeable, but so

0:01:07.920 --> 0:01:10.280
<v Speaker 5>he's certainly reflecting. I mean, if we follow his social media,

0:01:10.319 --> 0:01:13.360
<v Speaker 5>he's been calling out this for a long time here

0:01:13.520 --> 0:01:16.679
<v Speaker 5>and calling out Elon Musk for using this his focus

0:01:16.680 --> 0:01:19.520
<v Speaker 5>on Tesla now on these tariffs and the impact on

0:01:19.560 --> 0:01:20.560
<v Speaker 5>certain companies like Apple.

0:01:20.680 --> 0:01:23.160
<v Speaker 3>But I guess my question is too, like, at least

0:01:23.160 --> 0:01:27.240
<v Speaker 3>for here, like it's passed through to your phone bill, right,

0:01:27.319 --> 0:01:29.160
<v Speaker 3>so it's like if it goes of one hundred bucks, like,

0:01:29.360 --> 0:01:30.280
<v Speaker 3>are you going to feel it?

0:01:30.959 --> 0:01:32.399
<v Speaker 5>I think a lot of people will.

0:01:32.640 --> 0:01:34.800
<v Speaker 3>I mean, if you're already paying thirteen hundred dollars for

0:01:34.840 --> 0:01:35.279
<v Speaker 3>a phone.

0:01:35.480 --> 0:01:37.560
<v Speaker 4>I mean, I don't know.

0:01:38.040 --> 0:01:39.920
<v Speaker 1>I see your point, but I think maybe if you're

0:01:40.080 --> 0:01:42.520
<v Speaker 1>here in America, maybe not. But in China where the

0:01:42.520 --> 0:01:46.600
<v Speaker 1>competition from the local brands, maybe that makes a huge difference.

0:01:46.640 --> 0:01:48.800
<v Speaker 3>Absolutely, When it's not done through your carrier, it's a

0:01:48.800 --> 0:01:51.280
<v Speaker 3>different set up exactly. All right, Let's go to Dollar

0:01:51.280 --> 0:01:53.440
<v Speaker 3>Tree now, different story, different story.

0:01:53.240 --> 0:01:55.720
<v Speaker 1>Because this is one of the companies that will maybe

0:01:55.720 --> 0:01:59.240
<v Speaker 1>benefit from this whole tire war City turn bullish. They

0:01:59.280 --> 0:02:02.960
<v Speaker 1>anticipate that the tariffs will generally be positive for the retailer.

0:02:03.000 --> 0:02:07.320
<v Speaker 1>They raise Dollar Tree buy from neutral to buy and

0:02:07.360 --> 0:02:10.120
<v Speaker 1>they say that you know, they have the coverage to

0:02:10.120 --> 0:02:12.760
<v Speaker 1>increase their base price. If you're already selling a one

0:02:12.760 --> 0:02:15.799
<v Speaker 1>dollar what's what's one twenty five, one fifty or one

0:02:15.840 --> 0:02:16.359
<v Speaker 1>seventy five?

0:02:16.440 --> 0:02:17.960
<v Speaker 4>And they really don't sell it one dollars But your

0:02:18.000 --> 0:02:19.120
<v Speaker 4>point is still take it. I get it.

0:02:19.160 --> 0:02:21.520
<v Speaker 1>And then they said that consumers will be accepting up

0:02:21.560 --> 0:02:24.400
<v Speaker 1>this change. And also, I mean with this inflation, consumers

0:02:24.440 --> 0:02:26.440
<v Speaker 1>will be trending lower. So will it be expecting more

0:02:26.480 --> 0:02:28.520
<v Speaker 1>footprint maybe the Dollar Tree stores.

0:02:28.720 --> 0:02:31.600
<v Speaker 5>That's one of the pushbacks from folks on TERRAF so

0:02:31.600 --> 0:02:34.680
<v Speaker 5>that they are not only a tax if you believe that,

0:02:35.480 --> 0:02:37.800
<v Speaker 5>as some congress do, but a regressive tax i. It

0:02:37.800 --> 0:02:41.680
<v Speaker 5>impacts the lower income folks more. And is that what

0:02:41.720 --> 0:02:44.360
<v Speaker 5>you really want? So some challenges there for sure.

0:02:44.480 --> 0:02:46.639
<v Speaker 4>Yeah, I'm gonna talk about the recovery out of it.

0:02:46.680 --> 0:02:48.240
<v Speaker 3>Is it K shaped right, which is what we talked

0:02:48.240 --> 0:02:50.560
<v Speaker 3>about lot during the pandemic, which get rich or poor

0:02:50.560 --> 0:02:51.680
<v Speaker 3>get poor at the end of the day, and you

0:02:51.760 --> 0:02:52.960
<v Speaker 3>have that divergence.

0:02:53.120 --> 0:02:54.959
<v Speaker 4>Let's wrap it up with micro strategy.

0:02:55.400 --> 0:02:58.120
<v Speaker 1>Micro strategy down by around five and a half percent,

0:02:58.200 --> 0:03:00.680
<v Speaker 1>so they paired back some of those losses. But basically

0:03:00.720 --> 0:03:03.240
<v Speaker 1>they said they will register an unrealized five point nine

0:03:03.240 --> 0:03:05.760
<v Speaker 1>billion loss in the first quarter, and that's after adopting

0:03:05.760 --> 0:03:09.040
<v Speaker 1>this accounting change. So the company's holdings of bitcoin is

0:03:09.080 --> 0:03:11.840
<v Speaker 1>around forty one billion and it dropped five billion because

0:03:11.880 --> 0:03:14.760
<v Speaker 1>of bitcoin's twelve percent drop. So they waited until this quarter,

0:03:14.800 --> 0:03:17.280
<v Speaker 1>the first quarter, rather to adopt the accounting change, and

0:03:17.280 --> 0:03:19.880
<v Speaker 1>prior to that they were classifying bitcoin as an intangible

0:03:19.880 --> 0:03:23.400
<v Speaker 1>asset similar to a trademark. So this one is probably

0:03:23.480 --> 0:03:25.760
<v Speaker 1>for the better, but still investors aren't liking it.

0:03:26.960 --> 0:03:31.080
<v Speaker 2>The Stock Movers podcast from Bloomberg Radio. Check back with

0:03:31.160 --> 0:03:34.240
<v Speaker 2>us throughout today for the latest roundup of companies making

0:03:34.320 --> 0:03:37.920
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:03:38.040 --> 0:03:41.960
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:03:42.040 --> 0:03:44.840
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:03:44.840 --> 0:03:46.240
<v Speaker 2>Bloomberg Business app.