WEBVTT - Tesla Slides, Ford Falls Most Since April, AppLovin Rises

0:00:02.480 --> 0:00:07.000
<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

0:00:08.520 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.440 --> 0:00:16.480
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.720 --> 0:00:21.040
<v Speaker 3>I'm Jim Stenovic along with Carol Masser. Sounded like I

0:00:21.079 --> 0:00:24.200
<v Speaker 3>was asking a question there, I know. I'm Tim steenavek' Tim,

0:00:25.040 --> 0:00:26.480
<v Speaker 3>I'm Kim stenebec.

0:00:26.320 --> 0:00:26.680
<v Speaker 1>What is it?

0:00:27.200 --> 0:00:31.080
<v Speaker 3>Akerman? Yeah, San Diego, I'm I'm what was it?

0:00:31.600 --> 0:00:31.720
<v Speaker 4>Oh?

0:00:31.800 --> 0:00:35.640
<v Speaker 3>I'm Ron Talia with Talia helped us out. Thank you,

0:00:35.880 --> 0:00:36.880
<v Speaker 3>Thank you, Talia.

0:00:36.640 --> 0:00:37.640
<v Speaker 1>Man Tuesday Brain.

0:00:38.280 --> 0:00:40.640
<v Speaker 3>I'm Tim Stataveg along with Carol Masser. Let's take a

0:00:40.640 --> 0:00:42.920
<v Speaker 3>look at some stocks on the move today. We're joined

0:00:42.960 --> 0:00:48.960
<v Speaker 3>by Bloomberg News Equities reporter Jordan Fitzgerald. She's here with us. Jordan,

0:00:49.640 --> 0:00:52.159
<v Speaker 3>You've got a lot to choose from, starting with Tesla.

0:00:52.479 --> 0:00:54.240
<v Speaker 4>It has not been a boring day. And if there's

0:00:54.280 --> 0:00:56.440
<v Speaker 4>something to say on Tesla, someone on Twitter is certainly

0:00:56.480 --> 0:00:56.880
<v Speaker 4>saying it.

0:00:57.320 --> 0:00:58.680
<v Speaker 3>What are you saying about Tesla?

0:00:59.440 --> 0:01:03.640
<v Speaker 4>Yeah. Tesla closed down about four and a half percent

0:01:03.720 --> 0:01:08.400
<v Speaker 4>today after the company announced these long awaited, allegedly affordable

0:01:08.920 --> 0:01:11.880
<v Speaker 4>versions of its Model Y and Model three cars, and

0:01:12.240 --> 0:01:15.440
<v Speaker 4>it just didn't seem to meet the cut. Investors were

0:01:15.480 --> 0:01:20.000
<v Speaker 4>a bit disappointed by just how little the discount was.

0:01:20.480 --> 0:01:23.840
<v Speaker 4>And they've also cut some features that people expect of Tesla.

0:01:24.160 --> 0:01:26.479
<v Speaker 4>And they had an analyst tell me it's not, you know,

0:01:26.840 --> 0:01:29.040
<v Speaker 4>serving on price, it's not serving on performance. So who

0:01:29.080 --> 0:01:31.880
<v Speaker 4>are these cars for and can they help Tesla's bottom line?

0:01:32.480 --> 0:01:34.839
<v Speaker 3>So interesting. We had a great discussion with Steve Mann

0:01:34.880 --> 0:01:36.959
<v Speaker 3>on our program today. Check it out on our podcast

0:01:37.040 --> 0:01:40.240
<v Speaker 3>feed if you missed it. He's Bloomberg Intelligence autos analyst.

0:01:40.280 --> 0:01:42.720
<v Speaker 3>And my question in was like, Okay, are they selling

0:01:42.760 --> 0:01:45.440
<v Speaker 3>these at cost like Jeff Bezos did with the Kindle

0:01:45.520 --> 0:01:49.480
<v Speaker 3>initially to get people to buy the books, because that's

0:01:49.560 --> 0:01:52.160
<v Speaker 3>high margins, So if you know, are they going to

0:01:52.160 --> 0:01:54.720
<v Speaker 3>be selling the autonomous driver software and stuff? And he said,

0:01:54.920 --> 0:01:57.400
<v Speaker 3>it's not just Tesla love, that's like the ultimate thing.

0:01:57.560 --> 0:02:00.560
<v Speaker 3>Services would be really great for any of these companies.

0:02:00.920 --> 0:02:03.440
<v Speaker 4>Yeah, and Tesla is really just looking for cash to

0:02:03.480 --> 0:02:06.840
<v Speaker 4>fund its broader ambitions. Like Tesla wants to be more

0:02:06.840 --> 0:02:09.400
<v Speaker 4>than an EBAT company. It wants to, you know, build

0:02:09.520 --> 0:02:11.600
<v Speaker 4>robots that you keep in your house. It wants to

0:02:11.919 --> 0:02:15.040
<v Speaker 4>be your go to robo taxi. And in order to

0:02:15.480 --> 0:02:17.960
<v Speaker 4>drop the capital that will not only achieve these goals,

0:02:17.960 --> 0:02:20.600
<v Speaker 4>but by achieving these goals allow Elon Musk to reap

0:02:20.680 --> 0:02:24.160
<v Speaker 4>the full benefits of his trillion dollar pay package that's

0:02:24.280 --> 0:02:27.440
<v Speaker 4>up for vote in November. Tesla really needs the cash

0:02:27.480 --> 0:02:28.800
<v Speaker 4>to fund these projects.

0:02:28.960 --> 0:02:32.120
<v Speaker 1>I just want the boring company to create another big

0:02:32.200 --> 0:02:35.040
<v Speaker 1>hall out to my home just outside New York City

0:02:35.360 --> 0:02:37.000
<v Speaker 1>so that commuting is a little bit easier.

0:02:37.120 --> 0:02:39.000
<v Speaker 3>Yeah, that's not going to happen. We're not going to

0:02:39.040 --> 0:02:40.760
<v Speaker 3>get political here, but there is a thing called the

0:02:40.800 --> 0:02:44.720
<v Speaker 3>Gateway Project. I don't know if you're familiar. Yeah, yeah,

0:02:44.880 --> 0:02:48.919
<v Speaker 3>that funding is not Yeah, okay, so Tesla on your radarf.

0:02:48.960 --> 0:02:51.320
<v Speaker 1>Hey, a girl could dream, she can, she can.

0:02:52.520 --> 0:02:54.440
<v Speaker 4>And that commute leaves a long time for dreaming.

0:02:54.560 --> 0:02:56.960
<v Speaker 1>I know, I know, but you know again, I'm an optimist.

0:02:57.680 --> 0:03:00.280
<v Speaker 1>Ford could use some optimism about the autumn like it

0:03:00.400 --> 0:03:00.720
<v Speaker 1>right now.

0:03:00.800 --> 0:03:04.840
<v Speaker 4>Ford certainly needs a bit of help. So earlier in September,

0:03:04.919 --> 0:03:07.680
<v Speaker 4>there was a fire at an aluminum plant that supplies

0:03:07.880 --> 0:03:11.000
<v Speaker 4>metal to Ford, but it wasn't until The Wall Street

0:03:11.080 --> 0:03:13.320
<v Speaker 4>Journal reported last night that this would actually have a

0:03:13.360 --> 0:03:18.280
<v Speaker 4>pretty significant disruption effect on the company, that the stock

0:03:18.360 --> 0:03:20.720
<v Speaker 4>really took a hit, and so Ford saw it's worst

0:03:20.760 --> 0:03:21.520
<v Speaker 4>day since February.

0:03:21.520 --> 0:03:22.480
<v Speaker 1>Today, it's I.

0:03:22.480 --> 0:03:24.959
<v Speaker 3>Mean, we think about the fragility of supply chains, right,

0:03:25.080 --> 0:03:26.960
<v Speaker 3>this is not this is a Ford story, but it's

0:03:27.000 --> 0:03:30.520
<v Speaker 3>a company that Ford uses. Toyota also uses this company

0:03:30.520 --> 0:03:32.320
<v Speaker 3>as well for raw materials.

0:03:32.080 --> 0:03:35.320
<v Speaker 4>Or Yeah, and on the supply chain, if Ford can't

0:03:35.320 --> 0:03:37.720
<v Speaker 4>make as many cars, that means they're getting fewer supplies

0:03:37.760 --> 0:03:40.760
<v Speaker 4>from other suppliers. So the whole you know, auto supply

0:03:40.840 --> 0:03:44.160
<v Speaker 4>sector was really not happy with that news today.

0:03:44.240 --> 0:03:46.320
<v Speaker 1>I mean, listen. City said it's too soon to cut

0:03:46.360 --> 0:03:48.800
<v Speaker 1>forth quarter North American light vehicle forecast, but that the

0:03:48.840 --> 0:03:52.000
<v Speaker 1>fire could present a supply risk for the period. Slid

0:03:52.040 --> 0:03:54.560
<v Speaker 1>productions also risked to suppliers, according to City, So we're

0:03:54.560 --> 0:03:55.600
<v Speaker 1>gonna have to keep an eye on this one.

0:03:55.720 --> 0:03:58.320
<v Speaker 3>Ford shares falling six point one percent, the most going

0:03:58.440 --> 0:03:59.160
<v Speaker 3>back to February.

0:03:59.240 --> 0:04:03.160
<v Speaker 1>Ford ticker All right, So app Lovin didn't get so

0:04:03.240 --> 0:04:05.400
<v Speaker 1>much love yesterday, but it did today.

0:04:06.080 --> 0:04:09.200
<v Speaker 4>Yes, app Lovin is an interesting case. The stock actually

0:04:09.720 --> 0:04:13.120
<v Speaker 4>had a crazy third quarter. It was almost it over

0:04:13.200 --> 0:04:16.680
<v Speaker 4>doubled in value across the third quarter. And I think

0:04:16.720 --> 0:04:19.760
<v Speaker 4>people were really spooked by this headline yesterday that the

0:04:20.000 --> 0:04:23.920
<v Speaker 4>SEC is probing the company over its data practices, and

0:04:24.000 --> 0:04:25.960
<v Speaker 4>you know, there's a lot of scary words there. You know,

0:04:26.000 --> 0:04:27.920
<v Speaker 4>you never want to hear SEC. You never want to

0:04:27.960 --> 0:04:29.960
<v Speaker 4>hear the word probe. You rarely want to hear the

0:04:29.960 --> 0:04:30.720
<v Speaker 4>word Lovin.

0:04:30.680 --> 0:04:32.080
<v Speaker 2>Out a g and.

0:04:33.880 --> 0:04:37.360
<v Speaker 4>I think the market really took that seriously. But after

0:04:37.680 --> 0:04:38.479
<v Speaker 4>people got arrest.

0:04:38.600 --> 0:04:41.840
<v Speaker 1>Yes, we're not why the SEC is maybe just a

0:04:41.839 --> 0:04:45.640
<v Speaker 1>bit of a just a bit of a personal issue.

0:04:45.760 --> 0:04:48.600
<v Speaker 4>But after people took a step back and remembered that

0:04:48.680 --> 0:04:51.520
<v Speaker 4>app Lovin had this giant surge over the past few months.

0:04:51.560 --> 0:04:53.880
<v Speaker 4>There's actually a lot of strong fundamentals left at the company,

0:04:53.920 --> 0:04:55.800
<v Speaker 4>and people saw a dip and they chose to buy it.

0:04:56.240 --> 0:04:59.560
<v Speaker 1>Well, you also had an analysis coming out right and

0:04:59.600 --> 0:05:03.400
<v Speaker 1>talking about was it City that talked about it and

0:05:03.560 --> 0:05:07.000
<v Speaker 1>basically said bye on the weakness, And they talked about

0:05:07.040 --> 0:05:11.680
<v Speaker 1>things that like the regulator SEC is not officially cus

0:05:11.720 --> 0:05:14.240
<v Speaker 1>the company wrongdo it, right, So there's some things.

0:05:13.960 --> 0:05:16.840
<v Speaker 4>Innocent until proven guilty. It's an accusation, it's not an allegation.

0:05:16.960 --> 0:05:20.520
<v Speaker 1>Yeah, there's no eight cot K filing, right, So maybe

0:05:20.520 --> 0:05:22.599
<v Speaker 1>the firm does not necessarily view the probe as a

0:05:22.600 --> 0:05:24.280
<v Speaker 1>material risk, right. So that's what we got.

0:05:24.200 --> 0:05:27.479
<v Speaker 3>From City Jordan Fitzeralchi is Bloomberg News Activity supporter, and

0:05:27.520 --> 0:05:29.520
<v Speaker 3>she will also consult with you on the name of

0:05:29.560 --> 0:05:30.160
<v Speaker 3>your company.

0:05:30.240 --> 0:05:31.720
<v Speaker 1>Right app Lovin without a G.

0:05:33.720 --> 0:05:37.760
<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

0:05:37.839 --> 0:05:40.440
<v Speaker 2>us throughout the day for the latest roundup of companies

0:05:40.480 --> 0:05:43.560
<v Speaker 2>making news on Wall Street and for the latest market

0:05:43.600 --> 0:05:48.080
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:05:48.160 --> 0:05:51.680
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:05:51.760 --> 0:05:53.239
<v Speaker 2>the Bloomberg Business app.