WEBVTT - Amazon Rallies; Netflix Moves Higher; Frontier Soars

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move today.

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<v Speaker 1>I'm Nathan Hager, joined by Bloomberg's Valerie Titel. Pretty busy

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<v Speaker 1>morning for individual stocks. Valerie, Let's start off with Amazon.

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<v Speaker 1>Is Amazon suddenly an Nvidia competitor?

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<v Speaker 2>Now?

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<v Speaker 3>Good morning, and good morning Nathan.

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<v Speaker 4>It's looking like it could post some threat to Nvideo's

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<v Speaker 4>market share in AI chips. It's rising one point seven

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<v Speaker 4>percent in the pre market, leading the Mac seven this

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<v Speaker 4>morning after it was announced that they are in talks

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<v Speaker 4>to invest ten billion or more in open Ai, and

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<v Speaker 4>the deal would see open Ai use an Amazon's trainium chips.

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<v Speaker 4>So this is a big win for Amazon's AI ambitions

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<v Speaker 4>to compete with the likes of Nvidia in this very competitive,

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<v Speaker 4>very lucrative.

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<v Speaker 3>AI chip race.

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<v Speaker 4>The deal would also value open Ai north of five

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<v Speaker 4>hundred billion dollars, and we know we're tracking that as

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<v Speaker 4>there is all of this talk floating around about open

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<v Speaker 4>Ai potentially ipoing in the next few years. So they've

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<v Speaker 4>notched up their valuation even further and signed this deal

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<v Speaker 4>with Amazon, likely using their chips off the back of that.

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<v Speaker 3>All right, so Amazon's getting a lift this morning.

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<v Speaker 1>But we got to talk about the biggest decliner among

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<v Speaker 1>large cap stocks this morning.

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<v Speaker 3>That would be homebuilder Lenar after all.

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<v Speaker 4>Yeah, homebuilder Lennar is down four percent in dragging down

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<v Speaker 4>the whole home building sector with it. We've got Poulti

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<v Speaker 4>Group down one point four, Toll Brothers down one and

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<v Speaker 4>a half. And it came after Lonar gave a forecast

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<v Speaker 4>for the first quarter deliveries and margins that were all

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<v Speaker 4>below expectations. It also signaled, you know, just some strains

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<v Speaker 4>in the housing market, and this is despite lower interest

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<v Speaker 4>rates of late. The builder also posted a lower than

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<v Speaker 4>expected order number and margins for the current quarter. So

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<v Speaker 4>Lenar falling four percent and dragging down the sector with it.

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<v Speaker 1>I mean, while the Warner Brothers Discovery bidding war continues

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<v Speaker 1>and the latest development seem to be benefiting Netflix for sure.

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<v Speaker 4>Yeah, we're seeing shares of Netflix up one point seven percent,

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<v Speaker 4>a double whammy of negative news for paramount sky Dance.

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<v Speaker 4>The Warner Brothers board is said to be preparing their

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<v Speaker 4>shareholders to reject the Paramount offer and also comes after

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<v Speaker 4>news that Jared Kushner's Affinity Fund is pulling its equity

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<v Speaker 4>that it pledged to the Paramount for the takeover. So

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<v Speaker 4>this negative news is seeing Paramount skuy Dance down nearly

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<v Speaker 4>one percent and Warner Brothers is also in the red

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<v Speaker 4>down one percent. So if it's losing one of the

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<v Speaker 4>second bidders for its assets, perhaps Warner Brothers won't see

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<v Speaker 4>Netflix raising their offer in order to win this hostile takeover.

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<v Speaker 4>So it does seem like Netflix might come out as

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<v Speaker 4>the leader amid this takeover battle for Warner Brothers Discovery's assets.

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<v Speaker 1>And apparently this isn't the only deal that we need

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<v Speaker 1>to keep an eye on. As of Spirit, Frontier Airlines

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<v Speaker 1>high up back.

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<v Speaker 4>Again, Yeah, back again for what a second or third

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<v Speaker 4>time of lost?

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<v Speaker 3>I've tried to track myself right.

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<v Speaker 4>Frontier Airlines is up nearly nine percent off the back

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<v Speaker 4>of this news that Spirit Airlines is in revived discussions

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<v Speaker 4>to merge with Frontier that would save Spirit Airlines from insolvency.

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<v Speaker 4>Spirit Airlines announced their second bankruptcy in less than a

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<v Speaker 4>year back in August. Now, if these two airlines do

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<v Speaker 4>combine it would be the fifth largest airline in the

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<v Speaker 4>US based on miles flown. Frontier is also rebounding though

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<v Speaker 4>from something that happened yesterday. They had an announcement that

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<v Speaker 4>they were replacing their CEO, and the stocks lilid eleven percent.

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<v Speaker 4>So some of this you can read as perhaps a

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<v Speaker 4>rebound from that negative news, but there is also looks

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<v Speaker 4>like it a good deal that could be announced in

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<v Speaker 4>between Frontier and Spirit Airlines.

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<v Speaker 1>And finally, Valerie got to keep it eye on the

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<v Speaker 1>defense stocks because it looks like President Trump's got his

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<v Speaker 1>eye on them as well.

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<v Speaker 4>Yeah, this is an interesting one. We're seeing Lockey down

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<v Speaker 4>one and a half percent in North Throughout, Gunman down

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<v Speaker 4>one percent after some news that the Trump administration is

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<v Speaker 4>said to be weighing an executive order to pressure defense

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<v Speaker 4>contractors to spend less on buybacks and dividends and invest

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<v Speaker 4>more in products.

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<v Speaker 3>It's the latest effort by the White.

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<v Speaker 4>House to fix the issue around slope your curement process

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<v Speaker 4>for the Department of War. And there are big questions

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<v Speaker 4>though whether Trump does have an ability to enforce such

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<v Speaker 4>an order. It's an extraordinary intrusion by the US government

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<v Speaker 4>into corporate adfairs.

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<v Speaker 2>This Stock Movers 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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