WEBVTT - Qualcomm China Investigation; Applied Digital Rises; Levi Lower

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

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

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<v Speaker 2>in 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 today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Valerie Titel, starting with

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<v Speaker 3>a stock that is moving way to the south following

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<v Speaker 3>some headlines out of China. Give us the update on

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<v Speaker 3>Qualcomm this morning. Good morning, val.

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<v Speaker 1>Hey, Good morning Nathan. Happy Friday. Qualcom shares are down

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<v Speaker 1>over two and a half percent so far in pre

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<v Speaker 1>market trade. This comes as China has started an anti

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<v Speaker 1>trust investigation into the company. Now, this is a latest

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<v Speaker 1>in a string of tip for tat moves between She

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<v Speaker 1>and Trump is a jockey for leverage before their key

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<v Speaker 1>meeting later this month to discuss trade. But it is

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<v Speaker 1>affecting Qualcom shares this morning, and that is because Qualcomm

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<v Speaker 1>they get a majority of their revenue from China. Around

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<v Speaker 1>sixty five percent of their revenue from the last fiscal

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<v Speaker 1>year came from China.

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<v Speaker 3>It also makes up a.

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<v Speaker 1>Majority of their sales as well, so it does pose

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<v Speaker 1>some issues for Qualcom if perhaps the Chinese government Chinese

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<v Speaker 1>regulator do cast a I on them in a negative way,

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<v Speaker 1>but it does follow a similar move from China that

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<v Speaker 1>they made against Nvidia a month or so ago that

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<v Speaker 1>was largely shrugged off by shares of Nvidia. But Qualcom

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<v Speaker 1>shares are in the red down two point six percent.

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<v Speaker 3>Yeah, certainly bears watching as we get closer to that

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<v Speaker 3>key meeting at the end of the month. The broader

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<v Speaker 3>market this morning, Valerie might show a little bit of

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<v Speaker 3>fatigue around the AI trade that we are certainly seeing

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<v Speaker 3>it still in the most The biggest gainer on the

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<v Speaker 3>tape this morning Applied Digital.

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<v Speaker 1>Applied Digital up twenty two percent in the pre market trade. Okay,

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<v Speaker 1>this comes after earnings where their revenue did beat estimates,

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<v Speaker 1>but they also had some positive details about expanding a

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<v Speaker 1>lease agreement with core Weave for additional compute, so they're

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<v Speaker 1>in advanced discussions to do that with the hyper Scaler

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<v Speaker 1>to build and focus on a data center campus in

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<v Speaker 1>North Dakota. Applied Digital is a company that creates equipment

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<v Speaker 1>for manufacturing semiconductors and has also been involved in the

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<v Speaker 1>data center buildout.

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<v Speaker 3>So these shares arising higher.

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<v Speaker 1>On the back of these earnings announcement, up twenty two

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<v Speaker 1>percent in pre market trade.

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<v Speaker 3>Another stock moving after earnings distressed for Levi Strauss.

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<v Speaker 1>Levis shares down nearly seven percent now. For Levi, this

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<v Speaker 1>comes despite raising its full year outlook, despite saying that

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<v Speaker 1>sales are going to look good into the holiday season. Essentially,

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<v Speaker 1>the market is really hanging on at some sentiment around tariffs.

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<v Speaker 1>They warned that tariffs are starting to bite now. While

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<v Speaker 1>in the previous quarter they were still able to raise prices,

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<v Speaker 1>consumers were still buying, so margins did seem okay in

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<v Speaker 1>the previous quarters. It does seem like there might be

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<v Speaker 1>some skepticism over whether their margins will stay stable heading

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<v Speaker 1>into the holiday season given that teriff warning. They did

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<v Speaker 1>pencil in and upgrade when it came to their tariff

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<v Speaker 1>what they're essentially penciling in for tariffs for the rest

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<v Speaker 1>of the world ex China, that was buffed up to

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<v Speaker 1>twenty percent. So some concern around there around the tariff warning.

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<v Speaker 3>For Levi, and just quickly another company that's been speculated

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<v Speaker 3>about being a potential US government target is still catching

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<v Speaker 3>a bit.

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<v Speaker 1>Yeah, this all goes back to the rare earth situation

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<v Speaker 1>that the jockeying for power between US and China on

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<v Speaker 1>rare earth critical medals is up eleven percent in pre

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<v Speaker 1>market trade. It's risen eighty percent so far this week,

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<v Speaker 1>and that is on speculation that perhaps it could be

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<v Speaker 1>the next company that the US government takes an equity

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<v Speaker 1>stake in. Remember, the US government is doing this in

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<v Speaker 1>order to try to get leverage over China, which is very,

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<v Speaker 1>very dominant in the critical metals mining space.

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<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout for the latest roundup of companies making news

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<v Speaker 2>on Wall Street and for the latest market moving headlines.

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