WEBVTT - Strategy Higher, Broadcom Surges, Lululemon Tumbles

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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 3>Let's take a look at some stocks on the move

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<v Speaker 3>today with us the one and only Bloomberg News process at.

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<v Speaker 3>Reporter Isabelle Lee here in the house.

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<v Speaker 1>Where would you like to begin the one and only

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<v Speaker 1>micro strategy more strategy tickers mstr So the stock has

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<v Speaker 1>fluctuated strategy? I know me too.

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<v Speaker 3>Is it called strategy?

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<v Speaker 1>Yes, shoot headline it looks like sailor strategy. But his

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<v Speaker 1>strategy is to buy bitcoin. So the stock has fluctuated strategy, simple,

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<v Speaker 1>very simple, use leverage, buy bitcoin. Okay, So the stock

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<v Speaker 1>is now down up to percent, it was down earlier,

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<v Speaker 1>so fluctuating between gains and losses. But why are we

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<v Speaker 1>talking about strategy today? Because it's emerging as a new

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<v Speaker 1>contender to be part of the S and P five

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<v Speaker 1>hundred night. So that is a big thing. They recently

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<v Speaker 1>emerged as a candidate. And this is a scenario that's

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<v Speaker 1>seemed far fetched just a few months ago. So what change?

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<v Speaker 1>Last quarter? They had a fourteen billion dollar unrealized gain

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<v Speaker 1>and this delivered the profitability requirement for the index eligibility

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<v Speaker 1>in theory undercurrent rules, So SMP is different from outther

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<v Speaker 1>indexes because there's a little bit more nuanced there. There's

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<v Speaker 1>what they call committee discretion, So even if a stock

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<v Speaker 1>is eligible, it doesn't mean it will be included. In fact,

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<v Speaker 1>a lot of these cell side shops they have at

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<v Speaker 1>least twenty in their list. But of course strategy is

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<v Speaker 1>the one that gains attention. And it's really interesting because

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<v Speaker 1>if admitted, passive funds would have to buy fifty million

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<v Speaker 1>shares approximately sixteen billion dollars. And of course, do I

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<v Speaker 1>even need to mention that this is a big win

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<v Speaker 1>for cryptobroson just take play.

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<v Speaker 4>It would be. It would be a big win if

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<v Speaker 4>it happens. We should know coinbase and block are already

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<v Speaker 4>in there, so there's sort of like this fintech idea

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<v Speaker 4>that maybe that's true.

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<v Speaker 1>But an analyst told me that it's hard to ignore

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<v Speaker 1>a player this big. So the minimum threshold to be

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<v Speaker 1>included in the S and P five hundred is twenty

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<v Speaker 1>two point seven billion micro strategy or strategy, it's nearly

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<v Speaker 1>one hundred. Yeah, it's really wild, but I must say

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<v Speaker 1>again that there are almost two dozen eligible companies, but strategies,

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<v Speaker 1>of course the one gaining.

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<v Speaker 4>In app love and Robinhead markets Carvana. It sounds like

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<v Speaker 4>you know a lot about this. Maybe you have a

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<v Speaker 4>story that's among the most red on the Bloomberg terminal.

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<v Speaker 4>Hopefully that focuses on this exact thing. So check that

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<v Speaker 4>one out if you want more information. They're broad coaming.

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<v Speaker 3>Am I crazy? Wait?

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<v Speaker 1>Okay?

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<v Speaker 3>Like twenty twenty two micro strategy was like a fourteen

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<v Speaker 3>dollars stock Yes, like, I just I know that doesn't

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<v Speaker 3>mean anything.

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<v Speaker 4>Go back and look at bitcoin and what it was doing.

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<v Speaker 3>Then, okay, I know, I know.

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<v Speaker 1>I know, I just I don't know click side note.

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<v Speaker 1>Micro strategy is all right in then't ask that one

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<v Speaker 1>hundred But arguably the SMP is a much bigger stage,

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<v Speaker 1>almost double in side So still.

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<v Speaker 4>Yeah, it means. It means even if you don't want

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<v Speaker 4>to own bitcoin, you're going to own it through if

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<v Speaker 4>it joins the sea.

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<v Speaker 1>The cold logic of investing. Vanguard, who we know has

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<v Speaker 1>as two digital assets. They're one of the biggest holders. Oh,

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<v Speaker 1>strategy just kind of wild.

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<v Speaker 3>Hey, speaking about what investors are holding on to today,

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<v Speaker 3>are buying into this is your number one gainer in

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<v Speaker 3>the Nasdaq one hundred and s and P five hundred.

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<v Speaker 3>We are talking about Broadcom.

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<v Speaker 1>Broadcom ticker is AVGO, So it's helping open ai design

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<v Speaker 1>and produce an a accelerator that will start shipping in

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<v Speaker 1>twenty twenty six. So this is a lucrative sphere that

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<v Speaker 1>is really dominated by Navidea. So obviously Broadcome investors are

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<v Speaker 1>cheering the move. You see their biggest inter day vile

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<v Speaker 1>since April, and of course you see Nvidia slump their

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<v Speaker 1>biggest intra day since at least May. So the order

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<v Speaker 1>of the accelerator total more than ten billion. This is

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<v Speaker 1>a big deal. Open Ai is really experiencing a lot

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<v Speaker 1>of shortages and now they're actually broadening out. They used

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<v Speaker 1>to be only exclusively with Microsoft, but now brought out

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<v Speaker 1>to Oracle, Corewave and Google.

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<v Speaker 3>Fascinating story, right, like, look at how these cycles are

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<v Speaker 3>just moving so quickly and who might be I'm not

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<v Speaker 3>saying and video's doing just fine, but it's just a

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<v Speaker 3>reminder you're not always on top, correct, it may not

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<v Speaker 3>stay there forever?

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<v Speaker 4>Speaking of cycles, is at leisure in some sort of

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<v Speaker 4>cycle right now?

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<v Speaker 1>Lula Lama tickers Lulu it's down almost twenty percent. That's

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<v Speaker 1>after they cut their outlook disappointment investors for a certain

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<v Speaker 1>straight quarter. Yes, and their share is at the lowest

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<v Speaker 1>level since the onset of the pandemic. And investors are

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<v Speaker 1>so spooked that at least seven analysts downgraded to a

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<v Speaker 1>stop in a single day, pushing the share of buy

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<v Speaker 1>recommendations of the company to the lowest since twenty fourteen.

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<v Speaker 1>And I love Lula Leammon personally, and a lot of

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<v Speaker 1>my peers do. I mean the quality is prey, Yeah,

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<v Speaker 1>full transparency.

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<v Speaker 3>No pun intended.

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<v Speaker 4>That you're going back in time.

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<v Speaker 3>You're gonna have to if you can't understand that.

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<v Speaker 1>But I agree that I think the quality of yes,

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<v Speaker 1>my leggings from my college days, which was yesterday. No,

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<v Speaker 1>I'm kidding, but so great. Yeah.

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<v Speaker 4>But the pushback on this is that, yeah, they were

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<v Speaker 4>early to market and they sort of created this market.

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<v Speaker 4>Now there's so much competition in this space, and you

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<v Speaker 4>walk around New York City in the summer, and what

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<v Speaker 4>do you see people wearing. It's not necessarily Lulu Lemon.

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<v Speaker 1>It's not dominated by Lemon anymore. And consumers sweaty Betty, Yes, everything,

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<v Speaker 1>and while you're very aware, I love it.

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<v Speaker 4>That's what I hear.

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<v Speaker 1>Consumers are now more value focused and they're kind of

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<v Speaker 1>I don't want to say overpriced, but they're expensive. They're

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<v Speaker 1>almost one hundred dollars for a legging.

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<v Speaker 3>So isn't all.

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<v Speaker 4>That stuff expensive though, like the companies that I just.

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<v Speaker 1>Mentioned, Yeah, but it rarely goes on sale, I guess,

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<v Speaker 1>Carol and I a yeah. And they're also affected by tariffs,

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<v Speaker 1>so just very quickly, they're affected by the the Minimus exemption.

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<v Speaker 1>This is where low value shipments under eight hundred will

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<v Speaker 1>now be taxed. And of course, I mean if you

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<v Speaker 1>order leggings, you'll expect that to be taxed, so that's

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<v Speaker 1>obviously affecting. And Lula Lemon also lowered both a revenue

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<v Speaker 1>and EPs outlook, So tough times for Lula Lemon.

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<v Speaker 2>The Stock Mover's report from Bloomberg Radio. Check back with

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