Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers podcast, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Take a look at on the stocks in the move today,
Speaker 3: joined now by Bloomberg's Isabel Lee Bloomer, Cross Asset Reporter,
Speaker 3: speaking of you're talking about.
Speaker 1: Apple getting a downgrade, getting a down grade, and that's
Speaker 1: why it shares our sinking lower by five percent today.
Speaker 1: So the price target is cut to two point fifty
Speaker 1: from three twenty five. And wet Bush dan ives which
Speaker 1: is one of the biggest bulls sites of Trump administration's
Speaker 1: tariff policy. So he said that the tariff economic armageddon
Speaker 1: unleashed by Trump is a complete disaster for Apple given
Speaker 1: its massive China production exposure. And as we know, Apple
Speaker 1: really sources majority of its supplies and equipment and all
Speaker 1: of those from China. And recall that the tiff rates
Speaker 1: related for China is at fifty four percent. Taiwan, where
Speaker 1: it gets a lot of those, is also thirty two percent.
Speaker 1: So those would really be devastating to Apple It's cost
Speaker 1: structure and ultimately consumer demand. But here's a catch. I
Speaker 1: still has an outperformance rating for Apple.
Speaker 3: I mean, yeah, yeah, yeah, I mean so that's bread. Yeah,
Speaker 3: it's his brand for sure, but the details there are
Speaker 3: quite striking. A Dollar Tree, let's go through here. This
Speaker 3: also is getting some analyst comments today, But I like Dollar.
Speaker 1: Tree because it's engine higher by almost eight percent. City
Speaker 1: basically turned bullish. So City anticipates that the higher across
Speaker 1: the board tiff only positive for the discount retailer. And
Speaker 1: I got excited when I was reading this story because
Speaker 1: most of the Tireff effect is on the negative side.
Speaker 1: So City says that the higher across the board tiff
Speaker 1: will be positive. Because he said that they added the
Speaker 1: price target. If Dollar Tree basically increases from one dollar
Speaker 1: to one twenty five or one fifty or one seventy five,
Speaker 1: it will seem inevitable, but consumers would be quote accepting
Speaker 1: of the magnitude of change. And he acknowledges though that
Speaker 1: around fifty percent of the company's product is subject to
Speaker 1: higher tariffs. But still he says that he believes that
Speaker 1: they can overcome this. He changed price target to one
Speaker 1: hundred and three from seventy six dollars, and the company
Speaker 1: may benefit from consumers also trading lower, so maybe more
Speaker 1: people will go to dollar Tree. Okay, very good. I
Speaker 1: don't know see about it.
Speaker 3: I mean, yeah, it's just I guess the reason behind
Speaker 3: it is a little disturbing when you take a lot
Speaker 3: of the recession ons at Goldman and JP Morgan also taken.
Speaker 1: Back up as well. Still some margin impression, I would
Speaker 1: think as well, Man, the cost to get sold are
Speaker 1: going to go up.
Speaker 3: Yeah, little boy, a micro strategy. Let's end it here.
Speaker 3: So this is the bitcoin proxy, right.
Speaker 1: Bitcoin proxy, hedge fund proxy of bitcoin. Basically they're edging
Speaker 1: lware by nine percent. Micro Strategy said strategy. Rather, it
Speaker 1: will register and unrealized five point nine billion laws in
Speaker 1: the first quarter, and that's after they adopted this accounting
Speaker 1: change that requires them to value bitcoin at market prices.
Speaker 1: So the company now holds forty one point eight billion
Speaker 1: dollars worth of bitcoin and that fell by nearly five
Speaker 1: billion in the first quarter, and that's because we saw
Speaker 1: bitcoin drop around twelve percent, So this was really long timecoming.
Speaker 1: Strategy waited until the first quarter to adopt this accounting change.
Speaker 1: So prior to the change, Strategy has been classifying bitcoin
Speaker 1: as intangible, meaning it similar to trademarks. Or brand recognition,
Speaker 1: and this designation really forced Strategy to permanently, permanently mark
Speaker 1: down the value of its holding, So that's why they
Speaker 1: had this change, but it's still not good.
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