Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move
Speaker 3: today with us the one and only Bloomberg News process at.
Speaker 3: Reporter Isabelle Lee here in the house.
Speaker 1: Where would you like to begin the one and only
Speaker 1: micro strategy more strategy tickers mstr So the stock has
Speaker 1: fluctuated strategy? I know me too.
Speaker 3: Is it called strategy?
Speaker 1: Yes, shoot headline it looks like sailor strategy. But his
Speaker 1: strategy is to buy bitcoin. So the stock has fluctuated strategy, simple,
Speaker 1: very simple, use leverage, buy bitcoin. Okay, So the stock
Speaker 1: is now down up to percent, it was down earlier,
Speaker 1: so fluctuating between gains and losses. But why are we
Speaker 1: talking about strategy today? Because it's emerging as a new
Speaker 1: contender to be part of the S and P five
Speaker 1: hundred night. So that is a big thing. They recently
Speaker 1: emerged as a candidate. And this is a scenario that's
Speaker 1: seemed far fetched just a few months ago. So what change?
Speaker 1: Last quarter? They had a fourteen billion dollar unrealized gain
Speaker 1: and this delivered the profitability requirement for the index eligibility
Speaker 1: in theory undercurrent rules, So SMP is different from outther
Speaker 1: indexes because there's a little bit more nuanced there. There's
Speaker 1: what they call committee discretion, So even if a stock
Speaker 1: is eligible, it doesn't mean it will be included. In fact,
Speaker 1: a lot of these cell side shops they have at
Speaker 1: least twenty in their list. But of course strategy is
Speaker 1: the one that gains attention. And it's really interesting because
Speaker 1: if admitted, passive funds would have to buy fifty million
Speaker 1: shares approximately sixteen billion dollars. And of course, do I
Speaker 1: even need to mention that this is a big win
Speaker 1: for cryptobroson just take play.
Speaker 4: It would be. It would be a big win if
Speaker 4: it happens. We should know coinbase and block are already
Speaker 4: in there, so there's sort of like this fintech idea
Speaker 4: that maybe that's true.
Speaker 1: But an analyst told me that it's hard to ignore
Speaker 1: a player this big. So the minimum threshold to be
Speaker 1: included in the S and P five hundred is twenty
Speaker 1: two point seven billion micro strategy or strategy, it's nearly
Speaker 1: one hundred. Yeah, it's really wild, but I must say
Speaker 1: again that there are almost two dozen eligible companies, but strategies,
Speaker 1: of course the one gaining.
Speaker 4: In app love and Robinhead markets Carvana. It sounds like
Speaker 4: you know a lot about this. Maybe you have a
Speaker 4: story that's among the most red on the Bloomberg terminal.
Speaker 4: Hopefully that focuses on this exact thing. So check that
Speaker 4: one out if you want more information. They're broad coaming.
Speaker 3: Am I crazy? Wait?
Speaker 1: Okay?
Speaker 3: Like twenty twenty two micro strategy was like a fourteen
Speaker 3: dollars stock Yes, like, I just I know that doesn't
Speaker 3: mean anything.
Speaker 4: Go back and look at bitcoin and what it was doing.
Speaker 3: Then, okay, I know, I know.
Speaker 1: I know, I just I don't know click side note.
Speaker 1: Micro strategy is all right in then't ask that one
Speaker 1: hundred But arguably the SMP is a much bigger stage,
Speaker 1: almost double in side So still.
Speaker 4: Yeah, it means. It means even if you don't want
Speaker 4: to own bitcoin, you're going to own it through if
Speaker 4: it joins the sea.
Speaker 1: The cold logic of investing. Vanguard, who we know has
Speaker 1: as two digital assets. They're one of the biggest holders. Oh,
Speaker 1: strategy just kind of wild.
Speaker 3: Hey, speaking about what investors are holding on to today,
Speaker 3: are buying into this is your number one gainer in
Speaker 3: the Nasdaq one hundred and s and P five hundred.
Speaker 3: We are talking about Broadcom.
Speaker 1: Broadcom ticker is AVGO, So it's helping open ai design
Speaker 1: and produce an a accelerator that will start shipping in
Speaker 1: twenty twenty six. So this is a lucrative sphere that
Speaker 1: is really dominated by Navidea. So obviously Broadcome investors are
Speaker 1: cheering the move. You see their biggest inter day vile
Speaker 1: since April, and of course you see Nvidia slump their
Speaker 1: biggest intra day since at least May. So the order
Speaker 1: of the accelerator total more than ten billion. This is
Speaker 1: a big deal. Open Ai is really experiencing a lot
Speaker 1: of shortages and now they're actually broadening out. They used
Speaker 1: to be only exclusively with Microsoft, but now brought out
Speaker 1: to Oracle, Corewave and Google.
Speaker 3: Fascinating story, right, like, look at how these cycles are
Speaker 3: just moving so quickly and who might be I'm not
Speaker 3: saying and video's doing just fine, but it's just a
Speaker 3: reminder you're not always on top, correct, it may not
Speaker 3: stay there forever?
Speaker 4: Speaking of cycles, is at leisure in some sort of
Speaker 4: cycle right now?
Speaker 1: Lula Lama tickers Lulu it's down almost twenty percent. That's
Speaker 1: after they cut their outlook disappointment investors for a certain
Speaker 1: straight quarter. Yes, and their share is at the lowest
Speaker 1: level since the onset of the pandemic. And investors are
Speaker 1: so spooked that at least seven analysts downgraded to a
Speaker 1: stop in a single day, pushing the share of buy
Speaker 1: recommendations of the company to the lowest since twenty fourteen.
Speaker 1: And I love Lula Leammon personally, and a lot of
Speaker 1: my peers do. I mean the quality is prey, Yeah,
Speaker 1: full transparency.
Speaker 3: No pun intended.
Speaker 4: That you're going back in time.
Speaker 3: You're gonna have to if you can't understand that.
Speaker 1: But I agree that I think the quality of yes,
Speaker 1: my leggings from my college days, which was yesterday. No,
Speaker 1: I'm kidding, but so great. Yeah.
Speaker 4: But the pushback on this is that, yeah, they were
Speaker 4: early to market and they sort of created this market.
Speaker 4: Now there's so much competition in this space, and you
Speaker 4: walk around New York City in the summer, and what
Speaker 4: do you see people wearing. It's not necessarily Lulu Lemon.
Speaker 1: It's not dominated by Lemon anymore. And consumers sweaty Betty, Yes, everything,
Speaker 1: and while you're very aware, I love it.
Speaker 4: That's what I hear.
Speaker 1: Consumers are now more value focused and they're kind of
Speaker 1: I don't want to say overpriced, but they're expensive. They're
Speaker 1: almost one hundred dollars for a legging.
Speaker 3: So isn't all.
Speaker 4: That stuff expensive though, like the companies that I just.
Speaker 1: Mentioned, Yeah, but it rarely goes on sale, I guess,
Speaker 1: Carol and I a yeah. And they're also affected by tariffs,
Speaker 1: so just very quickly, they're affected by the the Minimus exemption.
Speaker 1: This is where low value shipments under eight hundred will
Speaker 1: now be taxed. And of course, I mean if you
Speaker 1: order leggings, you'll expect that to be taxed, so that's
Speaker 1: obviously affecting. And Lula Lemon also lowered both a revenue
Speaker 1: and EPs outlook, So tough times for Lula Lemon.
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