1 00:00:02,520 --> 00:00:09,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:17,320 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,560 --> 00:00:19,040 Speaker 3: Take a look at on the stocks in the move today, 5 00:00:19,120 --> 00:00:22,120 Speaker 3: joined now by Bloomberg's Isabel Lee Bloomer, Cross Asset Reporter, 6 00:00:22,560 --> 00:00:24,600 Speaker 3: speaking of you're talking about. 7 00:00:24,280 --> 00:00:27,400 Speaker 1: Apple getting a downgrade, getting a down grade, and that's 8 00:00:27,400 --> 00:00:30,080 Speaker 1: why it shares our sinking lower by five percent today. 9 00:00:30,120 --> 00:00:32,320 Speaker 1: So the price target is cut to two point fifty 10 00:00:32,520 --> 00:00:35,599 Speaker 1: from three twenty five. And wet Bush dan ives which 11 00:00:35,680 --> 00:00:38,360 Speaker 1: is one of the biggest bulls sites of Trump administration's 12 00:00:38,400 --> 00:00:42,240 Speaker 1: tariff policy. So he said that the tariff economic armageddon 13 00:00:42,320 --> 00:00:45,320 Speaker 1: unleashed by Trump is a complete disaster for Apple given 14 00:00:45,360 --> 00:00:48,479 Speaker 1: its massive China production exposure. And as we know, Apple 15 00:00:48,560 --> 00:00:52,279 Speaker 1: really sources majority of its supplies and equipment and all 16 00:00:52,320 --> 00:00:54,520 Speaker 1: of those from China. And recall that the tiff rates 17 00:00:54,560 --> 00:00:57,280 Speaker 1: related for China is at fifty four percent. Taiwan, where 18 00:00:57,280 --> 00:00:59,320 Speaker 1: it gets a lot of those, is also thirty two percent. 19 00:00:59,560 --> 00:01:02,080 Speaker 1: So those would really be devastating to Apple It's cost 20 00:01:02,160 --> 00:01:05,920 Speaker 1: structure and ultimately consumer demand. But here's a catch. I 21 00:01:06,080 --> 00:01:08,319 Speaker 1: still has an outperformance rating for Apple. 22 00:01:08,959 --> 00:01:11,600 Speaker 3: I mean, yeah, yeah, yeah, I mean so that's bread. Yeah, 23 00:01:11,640 --> 00:01:13,880 Speaker 3: it's his brand for sure, but the details there are 24 00:01:13,959 --> 00:01:16,760 Speaker 3: quite striking. A Dollar Tree, let's go through here. This 25 00:01:16,840 --> 00:01:19,760 Speaker 3: also is getting some analyst comments today, But I like Dollar. 26 00:01:19,560 --> 00:01:22,640 Speaker 1: Tree because it's engine higher by almost eight percent. City 27 00:01:22,680 --> 00:01:25,520 Speaker 1: basically turned bullish. So City anticipates that the higher across 28 00:01:25,520 --> 00:01:28,440 Speaker 1: the board tiff only positive for the discount retailer. And 29 00:01:28,480 --> 00:01:30,400 Speaker 1: I got excited when I was reading this story because 30 00:01:30,440 --> 00:01:34,200 Speaker 1: most of the Tireff effect is on the negative side. 31 00:01:34,240 --> 00:01:36,520 Speaker 1: So City says that the higher across the board tiff 32 00:01:36,560 --> 00:01:40,319 Speaker 1: will be positive. Because he said that they added the 33 00:01:40,319 --> 00:01:43,679 Speaker 1: price target. If Dollar Tree basically increases from one dollar 34 00:01:43,720 --> 00:01:45,880 Speaker 1: to one twenty five or one fifty or one seventy five, 35 00:01:46,040 --> 00:01:49,200 Speaker 1: it will seem inevitable, but consumers would be quote accepting 36 00:01:49,240 --> 00:01:52,200 Speaker 1: of the magnitude of change. And he acknowledges though that 37 00:01:52,320 --> 00:01:54,840 Speaker 1: around fifty percent of the company's product is subject to 38 00:01:54,920 --> 00:01:57,680 Speaker 1: higher tariffs. But still he says that he believes that 39 00:01:57,720 --> 00:02:00,120 Speaker 1: they can overcome this. He changed price target to one 40 00:02:00,200 --> 00:02:03,320 Speaker 1: hundred and three from seventy six dollars, and the company 41 00:02:03,320 --> 00:02:06,160 Speaker 1: may benefit from consumers also trading lower, so maybe more 42 00:02:06,160 --> 00:02:09,040 Speaker 1: people will go to dollar Tree. Okay, very good. I 43 00:02:09,080 --> 00:02:10,520 Speaker 1: don't know see about it. 44 00:02:10,600 --> 00:02:13,080 Speaker 3: I mean, yeah, it's just I guess the reason behind 45 00:02:13,120 --> 00:02:15,480 Speaker 3: it is a little disturbing when you take a lot 46 00:02:15,480 --> 00:02:18,040 Speaker 3: of the recession ons at Goldman and JP Morgan also taken. 47 00:02:17,840 --> 00:02:19,720 Speaker 1: Back up as well. Still some margin impression, I would 48 00:02:19,720 --> 00:02:21,240 Speaker 1: think as well, Man, the cost to get sold are 49 00:02:21,240 --> 00:02:21,680 Speaker 1: going to go up. 50 00:02:21,760 --> 00:02:24,760 Speaker 3: Yeah, little boy, a micro strategy. Let's end it here. 51 00:02:25,160 --> 00:02:27,200 Speaker 3: So this is the bitcoin proxy, right. 52 00:02:27,280 --> 00:02:31,799 Speaker 1: Bitcoin proxy, hedge fund proxy of bitcoin. Basically they're edging 53 00:02:31,840 --> 00:02:35,800 Speaker 1: lware by nine percent. Micro Strategy said strategy. Rather, it 54 00:02:35,840 --> 00:02:38,679 Speaker 1: will register and unrealized five point nine billion laws in 55 00:02:38,720 --> 00:02:41,320 Speaker 1: the first quarter, and that's after they adopted this accounting 56 00:02:41,360 --> 00:02:44,320 Speaker 1: change that requires them to value bitcoin at market prices. 57 00:02:44,440 --> 00:02:47,440 Speaker 1: So the company now holds forty one point eight billion 58 00:02:47,480 --> 00:02:50,119 Speaker 1: dollars worth of bitcoin and that fell by nearly five 59 00:02:50,160 --> 00:02:52,080 Speaker 1: billion in the first quarter, and that's because we saw 60 00:02:52,160 --> 00:02:56,680 Speaker 1: bitcoin drop around twelve percent, So this was really long timecoming. 61 00:02:56,680 --> 00:02:59,840 Speaker 1: Strategy waited until the first quarter to adopt this accounting change. 62 00:03:00,040 --> 00:03:03,040 Speaker 1: So prior to the change, Strategy has been classifying bitcoin 63 00:03:03,160 --> 00:03:06,799 Speaker 1: as intangible, meaning it similar to trademarks. Or brand recognition, 64 00:03:07,320 --> 00:03:11,200 Speaker 1: and this designation really forced Strategy to permanently, permanently mark 65 00:03:11,280 --> 00:03:13,240 Speaker 1: down the value of its holding, So that's why they 66 00:03:13,240 --> 00:03:15,400 Speaker 1: had this change, but it's still not good. 67 00:03:17,160 --> 00:03:21,280 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 68 00:03:21,360 --> 00:03:24,119 Speaker 2: us throughout the day for the latest roundup of companies 69 00:03:24,160 --> 00:03:27,200 Speaker 2: making news on Wall Street and for the latest market 70 00:03:27,240 --> 00:03:31,639 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 71 00:03:31,639 --> 00:03:34,920 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 72 00:03:34,960 --> 00:03:36,440 Speaker 2: the Bloomberg Business app.