WEBVTT - Costco Reverses Drop, Gap Slips, Day One Soars 

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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>I'm Carol Messer along at TIMP Stanwick. Let's get to

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<v Speaker 3>some stocks on the move here to do that with

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<v Speaker 3>us as Bloomberg TV Market's corisponditt Normal Linda, she's in

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<v Speaker 3>the house, all right. We got sacks on the move

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<v Speaker 3>to the upside downside. As always in a market, a

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<v Speaker 3>lot going on.

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<v Speaker 4>I want to take a look at the consumer space.

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<v Speaker 4>Let's look at some Costco. That's a name that I'd

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<v Speaker 4>have my eyes on. This is cost on the ticker.

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<v Speaker 4>We're seeing shares that are higher by about one point

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<v Speaker 4>eight percent right now. But this is after the company

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<v Speaker 4>reported that its profit rose more than a lot of

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<v Speaker 4>Wall Street had initially anticipated. So if you think about

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<v Speaker 4>the idea that people are really having this flight toward

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<v Speaker 4>cheaper names, I mean, Costco is where you go to

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<v Speaker 4>get a deal, and clearly we're seeing this company is

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<v Speaker 4>a beneficiary of that. So we do also know that

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<v Speaker 4>they are actually trying to lean more into cake delivery

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<v Speaker 4>and deli trades, which is interesting Apparently it's a way

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<v Speaker 4>to deliver cake delivery wow, and deli strategy. So I'm

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<v Speaker 4>wondering the deli trades. Is it you know, it's just

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<v Speaker 4>a party at the house or is it deli trays?

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<v Speaker 4>Maybe for a work event, who knows. But it's attracting

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<v Speaker 4>younger consumers. Apparently one of.

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<v Speaker 1>Those Sebastian Escobar, our producer. He says, five dollars of

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<v Speaker 1>tissory chicken. He loves it.

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<v Speaker 3>Wow.

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<v Speaker 4>Oh it's good, It's quite good.

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<v Speaker 3>I've never been in with a solid I'm still I

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<v Speaker 3>could have gone home, buddy and gotten.

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<v Speaker 2>A membership members I'm sorry.

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<v Speaker 3>A Costco member. You know, I still am not a

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<v Speaker 3>Costco member, all right? So interesting because Costco tends to

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<v Speaker 3>be a wealthier consumer. So interesting. Stack's still up about

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<v Speaker 3>sixteen percent year to date, so absolutely, but maybe a

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<v Speaker 3>different trade today, let's go to Gap.

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<v Speaker 4>Yes, So also keeping a bit of an eye on

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<v Speaker 4>the consumer, we are seeing shares of Gap lower falling

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<v Speaker 4>for double digit losses is after its fourth quarter sales

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<v Speaker 4>and profit both miss expectations. And digging a little bit

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<v Speaker 4>under the hood, we saw that both Old Navy and

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<v Speaker 4>Athleta they were the ones that reported some of the

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<v Speaker 4>lower metrics, and we know Athleta is their biggest brand.

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<v Speaker 4>One of the sources in this story that we have

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<v Speaker 4>on the Bloomberg terminal on managing director at Global Data

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<v Speaker 4>saying that athlete is just bland. He's essentially saying that

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<v Speaker 4>they're able to be right, it didn't.

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<v Speaker 1>But maybe the whole category has been shifted.

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<v Speaker 2>Let me look at.

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<v Speaker 4>Lulu, right, and so it's hard for them to keep

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<v Speaker 4>up with competition. So they're really trying to rework and

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<v Speaker 4>kind of paint a turnarout story for that brand. We

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<v Speaker 4>know Athleta is their biggest brand. Gap and Banana Republic

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<v Speaker 4>both they were pretty decent this quarter. So they also

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<v Speaker 4>did see a forecast for twenty twenty six that was

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<v Speaker 4>a bright spot for them.

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<v Speaker 1>But he says Gap is cool again.

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<v Speaker 4>I mean, who's there? Are you?

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<v Speaker 1>What do you mean who's there?

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<v Speaker 4>I'm curious?

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<v Speaker 1>No, Like, well, in the nineties, in the nineties, yes,

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<v Speaker 1>I'm resit with you. Literally, we'd have European friends come

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<v Speaker 1>visit us and they'd buy stuff from Gap. Yeah, bring

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<v Speaker 1>it back to euar if they bring like an extra suitcase.

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<v Speaker 1>I mean, this is cool stuff. And now yeah, now,

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<v Speaker 1>it's cool again.

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<v Speaker 3>I remember I remember Banana Republic was like you'd walk

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<v Speaker 3>in and it was like you're on a safari. It

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<v Speaker 3>was a really fun what a time and like I'm serious,

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<v Speaker 3>like you think about what it's become. Right, So you

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<v Speaker 3>know these retailers change a lot often. All right, all right,

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<v Speaker 3>so gap and then let's get to not down love

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<v Speaker 3>this ticker.

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<v Speaker 4>Right, So this is a quirky one. I know you

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<v Speaker 4>guys like quirky names. So this one the ticker down

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<v Speaker 4>daw in. This is Day one. Bio Pharmaceutical was a

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<v Speaker 4>company I digged a be deeper into because I wasn't

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<v Speaker 4>familiar with. Yeah, so two point two billion dollars in

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<v Speaker 4>market cap. But the reason that we're seeing this in

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<v Speaker 4>the news today, it's a company that's based in San Francisco,

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<v Speaker 4>and it's surging more than sixty percent today, in saying

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<v Speaker 4>it's on pace for its biggest gain since twenty twenty two,

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<v Speaker 4>just a stellar rally. This is after the and drug

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<v Speaker 4>maker Servia agreed to buy the company for two point

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<v Speaker 4>five billion dollars. This is a sixty eight percent premium

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<v Speaker 4>from Day one's closing price yesterday, and Servia essentially wants

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<v Speaker 4>to become a leader when we think about the treatments

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<v Speaker 4>for rare tumors, buy twenty thirty and they see day

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<v Speaker 4>one as a way to get there. And so we

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<v Speaker 4>do see shares of day one up about one hundred

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<v Speaker 4>and twenty seven percent year today, but almost one hundred

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<v Speaker 4>percent of that coming from today's day gains alone.

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<v Speaker 3>Yeah, that's quite a bump, but it makes sense, right.

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<v Speaker 3>You see, we've seen I feel like a lot of

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<v Speaker 3>movement in the pharmaceutical space, companies picking up other companies.

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<v Speaker 3>All right, good stuff, as always normal, Enda, Bloomberg TV

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<v Speaker 3>Market correspondent.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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