1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market. Harnessing the power of Bloomberg data. 4 00:00:16,920 --> 00:00:18,640 Speaker 3: Let's take a look at some stocks on the move today. 5 00:00:18,640 --> 00:00:22,360 Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Titel, starting with 6 00:00:22,400 --> 00:00:26,760 Speaker 3: a stock that is moving way to the south following 7 00:00:26,800 --> 00:00:29,400 Speaker 3: some headlines out of China. Give us the update on 8 00:00:29,480 --> 00:00:31,319 Speaker 3: Qualcomm this morning. Good morning, val. 9 00:00:31,440 --> 00:00:34,720 Speaker 1: Hey, Good morning Nathan. Happy Friday. Qualcom shares are down 10 00:00:34,840 --> 00:00:37,279 Speaker 1: over two and a half percent so far in pre 11 00:00:37,360 --> 00:00:41,280 Speaker 1: market trade. This comes as China has started an anti 12 00:00:41,320 --> 00:00:45,680 Speaker 1: trust investigation into the company. Now, this is a latest 13 00:00:45,720 --> 00:00:48,159 Speaker 1: in a string of tip for tat moves between She 14 00:00:48,440 --> 00:00:51,080 Speaker 1: and Trump is a jockey for leverage before their key 15 00:00:51,080 --> 00:00:53,920 Speaker 1: meeting later this month to discuss trade. But it is 16 00:00:53,960 --> 00:00:57,880 Speaker 1: affecting Qualcom shares this morning, and that is because Qualcomm 17 00:00:58,400 --> 00:01:02,200 Speaker 1: they get a majority of their revenue from China. Around 18 00:01:02,240 --> 00:01:05,000 Speaker 1: sixty five percent of their revenue from the last fiscal 19 00:01:05,080 --> 00:01:06,080 Speaker 1: year came from China. 20 00:01:06,080 --> 00:01:06,959 Speaker 3: It also makes up a. 21 00:01:06,880 --> 00:01:10,480 Speaker 1: Majority of their sales as well, so it does pose 22 00:01:10,560 --> 00:01:14,560 Speaker 1: some issues for Qualcom if perhaps the Chinese government Chinese 23 00:01:14,600 --> 00:01:17,840 Speaker 1: regulator do cast a I on them in a negative way, 24 00:01:17,880 --> 00:01:20,400 Speaker 1: but it does follow a similar move from China that 25 00:01:20,440 --> 00:01:22,959 Speaker 1: they made against Nvidia a month or so ago that 26 00:01:23,080 --> 00:01:26,360 Speaker 1: was largely shrugged off by shares of Nvidia. But Qualcom 27 00:01:26,360 --> 00:01:28,559 Speaker 1: shares are in the red down two point six percent. 28 00:01:28,680 --> 00:01:30,800 Speaker 3: Yeah, certainly bears watching as we get closer to that 29 00:01:30,920 --> 00:01:34,280 Speaker 3: key meeting at the end of the month. The broader 30 00:01:34,319 --> 00:01:37,440 Speaker 3: market this morning, Valerie might show a little bit of 31 00:01:37,440 --> 00:01:40,400 Speaker 3: fatigue around the AI trade that we are certainly seeing 32 00:01:40,440 --> 00:01:44,280 Speaker 3: it still in the most The biggest gainer on the 33 00:01:44,319 --> 00:01:46,400 Speaker 3: tape this morning Applied Digital. 34 00:01:46,760 --> 00:01:51,840 Speaker 1: Applied Digital up twenty two percent in the pre market trade. Okay, 35 00:01:51,840 --> 00:01:55,760 Speaker 1: this comes after earnings where their revenue did beat estimates, 36 00:01:56,240 --> 00:02:00,040 Speaker 1: but they also had some positive details about expanding a 37 00:02:00,120 --> 00:02:04,000 Speaker 1: lease agreement with core Weave for additional compute, so they're 38 00:02:04,040 --> 00:02:07,000 Speaker 1: in advanced discussions to do that with the hyper Scaler 39 00:02:07,320 --> 00:02:10,000 Speaker 1: to build and focus on a data center campus in 40 00:02:10,000 --> 00:02:14,040 Speaker 1: North Dakota. Applied Digital is a company that creates equipment 41 00:02:14,080 --> 00:02:17,239 Speaker 1: for manufacturing semiconductors and has also been involved in the 42 00:02:17,360 --> 00:02:18,720 Speaker 1: data center buildout. 43 00:02:18,800 --> 00:02:20,760 Speaker 3: So these shares arising higher. 44 00:02:20,480 --> 00:02:23,040 Speaker 1: On the back of these earnings announcement, up twenty two 45 00:02:23,120 --> 00:02:24,440 Speaker 1: percent in pre market trade. 46 00:02:24,480 --> 00:02:29,680 Speaker 3: Another stock moving after earnings distressed for Levi Strauss. 47 00:02:30,000 --> 00:02:34,919 Speaker 1: Levis shares down nearly seven percent now. For Levi, this 48 00:02:35,080 --> 00:02:39,280 Speaker 1: comes despite raising its full year outlook, despite saying that 49 00:02:39,360 --> 00:02:42,440 Speaker 1: sales are going to look good into the holiday season. Essentially, 50 00:02:42,480 --> 00:02:45,840 Speaker 1: the market is really hanging on at some sentiment around tariffs. 51 00:02:45,919 --> 00:02:49,600 Speaker 1: They warned that tariffs are starting to bite now. While 52 00:02:50,000 --> 00:02:52,959 Speaker 1: in the previous quarter they were still able to raise prices, 53 00:02:53,000 --> 00:02:56,560 Speaker 1: consumers were still buying, so margins did seem okay in 54 00:02:56,600 --> 00:02:58,760 Speaker 1: the previous quarters. It does seem like there might be 55 00:02:58,840 --> 00:03:02,960 Speaker 1: some skepticism over whether their margins will stay stable heading 56 00:03:02,960 --> 00:03:06,919 Speaker 1: into the holiday season given that teriff warning. They did 57 00:03:07,000 --> 00:03:09,680 Speaker 1: pencil in and upgrade when it came to their tariff 58 00:03:09,760 --> 00:03:12,640 Speaker 1: what they're essentially penciling in for tariffs for the rest 59 00:03:12,680 --> 00:03:14,760 Speaker 1: of the world ex China, that was buffed up to 60 00:03:14,800 --> 00:03:17,959 Speaker 1: twenty percent. So some concern around there around the tariff warning. 61 00:03:17,720 --> 00:03:21,960 Speaker 3: For Levi, and just quickly another company that's been speculated 62 00:03:22,000 --> 00:03:26,560 Speaker 3: about being a potential US government target is still catching 63 00:03:26,560 --> 00:03:26,800 Speaker 3: a bit. 64 00:03:27,080 --> 00:03:29,760 Speaker 1: Yeah, this all goes back to the rare earth situation 65 00:03:30,400 --> 00:03:32,880 Speaker 1: that the jockeying for power between US and China on 66 00:03:33,000 --> 00:03:37,480 Speaker 1: rare earth critical medals is up eleven percent in pre 67 00:03:37,600 --> 00:03:41,080 Speaker 1: market trade. It's risen eighty percent so far this week, 68 00:03:41,400 --> 00:03:43,600 Speaker 1: and that is on speculation that perhaps it could be 69 00:03:43,640 --> 00:03:46,360 Speaker 1: the next company that the US government takes an equity 70 00:03:46,720 --> 00:03:48,880 Speaker 1: stake in. Remember, the US government is doing this in 71 00:03:49,000 --> 00:03:51,520 Speaker 1: order to try to get leverage over China, which is very, 72 00:03:51,600 --> 00:03:54,080 Speaker 1: very dominant in the critical metals mining space. 73 00:03:55,400 --> 00:03:59,400 Speaker 2: This stock mover's report from Bloomberg Radio. Check back with 74 00:03:59,480 --> 00:04:02,840 Speaker 2: us throughout for the latest roundup of companies making news 75 00:04:02,880 --> 00:04:06,160 Speaker 2: on Wall Street and for the latest market moving headlines. 76 00:04:06,360 --> 00:04:10,360 Speaker 2: Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg 77 00:04:10,440 --> 00:04:13,480 Speaker 2: dot com, and on Applecarplay and Android Auto with the 78 00:04:13,520 --> 00:04:14,880 Speaker 2: Bloomberg Business app.