WEBVTT - Apple Lower, Applied Materials Drops, Boeing Falls on Plane Delays 

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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 1>Let's get a sense of what's going on out there

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<v Speaker 1>with those markets. Returned by Christina Aquino, Bloomberg News. Christine,

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<v Speaker 1>what are you looking at? Well, let's take a look

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<v Speaker 1>at Apple, Paul. I mean, we got some early news

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<v Speaker 1>before the open about a downgrade, but Apple shares ticker AAPL,

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<v Speaker 1>those are actually rebounding nicely now that the cash equity

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<v Speaker 1>is open, and those shares up just two tens of

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<v Speaker 1>one percent at the women. So yes, earlier we did

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<v Speaker 1>get a Jeffrey downgrade. They downgraded a firm to underperform

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<v Speaker 1>from hold, and that is one of the few sell

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<v Speaker 1>equivalent ratings on the Bloomberg system. Fewer than seven percent

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<v Speaker 1>of analysts have that sort of rating. So this is

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<v Speaker 1>an outlier for sure. But the analysts are saying that

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<v Speaker 1>their currentvaluation prices for Apple reflects a quote overly bullish

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<v Speaker 1>iPhone outlook. But then Bloomberg Intelligence saying that the seven

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<v Speaker 1>day average for iPhone seventeen delivery times was eighteen point

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<v Speaker 1>nine days versus thirteen point six days last year, so

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<v Speaker 1>that actually means longer rating times, stronger demand, and they're

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<v Speaker 1>saying that means that that puts it on track in

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<v Speaker 1>terms of sales for an eight to nine percent game,

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<v Speaker 1>which is double the consensus of four percent. So looking

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<v Speaker 1>optimistic probably what's being reflected in the share price today.

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<v Speaker 2>Let's also talk about Applied Materials.

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<v Speaker 1>It didn't report earnings, but I guess it gave the

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<v Speaker 1>equivalent of a profit warning. Yeah, absolutely, Scarla, and the

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<v Speaker 1>shares are paying for it or Applied Materials to create AMAT.

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<v Speaker 1>Those shares are down more than three percent now, so

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<v Speaker 1>extending losses as the session continues. And that's exactly it.

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<v Speaker 1>So we got Applied material saying that their net revenue

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<v Speaker 1>for fiscal twenty twenty six set to decrease by six

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<v Speaker 1>hundred million dollars because of the Trump administration's actions to

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<v Speaker 1>dramatically expand USA actions to capture subsidiaries of blacklisted companies.

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<v Speaker 1>What ultimately that means is that they're just going to

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<v Speaker 1>have a harder time selling to companies in China, specifically

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<v Speaker 1>who don't have a license to go around these sanctions.

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<v Speaker 1>And City analy is saying that this is a big

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<v Speaker 1>hit to apply material specifically because they're assuming about a

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<v Speaker 1>thirty percent of total revenue being derived from China, so

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<v Speaker 1>that impact six hundred million dollars. That's going to be

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<v Speaker 1>around seven percent to china total revenue in fiscal twenty

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<v Speaker 1>twenty six, which is worse than some of its competitors

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<v Speaker 1>in the space. Boeingo, what's happening? They're not good things

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<v Speaker 1>Triple seven. I didn't know we had a problem with

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<v Speaker 1>Triple seven. I can't contract, I know, Well, apparently we do,

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<v Speaker 1>and we got this Bloomberg exclusive reported yesterday after closed.

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<v Speaker 1>So and that's taking a little bit of a hit

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<v Speaker 1>on the shares, not too much though, so ticker be

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<v Speaker 1>a shares down just two tenths of one percent. But

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<v Speaker 1>the news doesn't sound good. So they're Triple seven slated

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<v Speaker 1>to fly commercially for the first time in early twenty

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<v Speaker 1>twenty seven now instead of next year. So Lafonsa was

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<v Speaker 1>meant to be the launch customer for this aircraft and

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<v Speaker 1>they're already making plans for delays. Meanwhile, Emirates, which is

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<v Speaker 1>meant to be the biggest customer for the aircraft, are

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<v Speaker 1>also growing more cautious and they're looking at entry into service,

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<v Speaker 1>possibly not before twenty twenty seven. So the estimate from

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<v Speaker 1>analysts there in terms of non cash accounting charge that

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<v Speaker 1>could run from anywhere from two and a half billion

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<v Speaker 1>to as much as four billion dollars, So the press

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<v Speaker 1>is negative. Executives have held meetings with major investors and

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<v Speaker 1>are now working on damage control messaging.

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