WEBVTT - eBay Rallies, Tyson Soars, UPS Sinks

0:00:02.520 --> 0:00:07.000
<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>This Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:17.160 --> 0:00:19.160
<v Speaker 3>This is Charlie Pelp. Let's take a look at some

0:00:19.239 --> 0:00:21.480
<v Speaker 3>of the stocks on the move today. We are joined

0:00:21.480 --> 0:00:25.200
<v Speaker 3>now by Christina Quino, Managing editor for the Market's Live

0:00:25.320 --> 0:00:28.800
<v Speaker 3>blog for Bloomberg News. Got to begin with a major

0:00:28.880 --> 0:00:32.640
<v Speaker 3>story involving eBay. We've got Ryan Cohen at it again.

0:00:32.720 --> 0:00:37.239
<v Speaker 3>He's the Canadian entrepreneur turned activist investor. What is it

0:00:37.320 --> 0:00:39.519
<v Speaker 3>that he is trying to buy and how much of

0:00:39.560 --> 0:00:41.280
<v Speaker 3>a surprise was this for markets?

0:00:41.600 --> 0:00:45.720
<v Speaker 1>Well, Charlie, based on the movers on the eBay shares

0:00:45.760 --> 0:00:48.959
<v Speaker 1>today more than five percent by the end of the

0:00:49.040 --> 0:00:53.040
<v Speaker 1>regular trading session, there's a big surprise there for investors.

0:00:53.240 --> 0:00:57.200
<v Speaker 1>Games up apparently making a fifty six billion dollar bid

0:00:57.600 --> 0:01:00.720
<v Speaker 1>for eBay and they are offering one hundred and twenty

0:01:00.720 --> 0:01:04.160
<v Speaker 1>five dollars per share in cash and stock. So eBay

0:01:04.240 --> 0:01:07.440
<v Speaker 1>apparently did not know about this prior to the move

0:01:07.560 --> 0:01:11.040
<v Speaker 1>and is now saying that will review the offer quote

0:01:11.200 --> 0:01:14.520
<v Speaker 1>with a focus on the value to be delivered to shareholders,

0:01:14.880 --> 0:01:19.240
<v Speaker 1>including the value of game Stop stocks. Very interesting, and

0:01:19.280 --> 0:01:21.640
<v Speaker 1>we also had Michael Burry, by the way of Big

0:01:21.680 --> 0:01:24.440
<v Speaker 1>Short Fame, apparently saying that he's going sold or he

0:01:24.560 --> 0:01:27.840
<v Speaker 1>sold his entire position in gamesof after news of the

0:01:27.880 --> 0:01:31.400
<v Speaker 1>offer came out, So very interesting that does Michael Burry

0:01:31.400 --> 0:01:33.679
<v Speaker 1>know something that investors don't know? That is the big question,

0:01:33.720 --> 0:01:34.679
<v Speaker 1>isn't it you have any.

0:01:34.600 --> 0:01:36.320
<v Speaker 3>Questions about financing for this thing?

0:01:36.720 --> 0:01:38.920
<v Speaker 1>I mean absolutely, I think that is going to be

0:01:39.080 --> 0:01:42.720
<v Speaker 1>the focus, Charlie, because at this moment, you know, there's

0:01:42.800 --> 0:01:47.040
<v Speaker 1>little clarity in terms of how gamesof is going to

0:01:47.440 --> 0:01:51.279
<v Speaker 1>make this purchase potentially and as part of a reason

0:01:51.280 --> 0:01:56.000
<v Speaker 1>probably why the likes of Michael Burry opting to kind

0:01:56.000 --> 0:01:59.640
<v Speaker 1>of excuse himself from the narrative, shall we say, from

0:01:59.640 --> 0:02:01.240
<v Speaker 1>this And so I think that's suddenly one of the

0:02:01.240 --> 0:02:04.080
<v Speaker 1>things that eBay investors in the board will want to

0:02:04.080 --> 0:02:07.480
<v Speaker 1>dig into is the structure of such a deal and

0:02:07.720 --> 0:02:11.400
<v Speaker 1>whether it is something that GameStop can follow through given

0:02:11.440 --> 0:02:14.919
<v Speaker 1>the volatility that we've seen in game Stop stairs over

0:02:15.000 --> 0:02:15.760
<v Speaker 1>the last few years.

0:02:15.880 --> 0:02:18.000
<v Speaker 3>Indeed, certainly a story we're going to be watching in

0:02:18.040 --> 0:02:20.600
<v Speaker 3>the next couple of days, possibly the next few weeks.

0:02:20.720 --> 0:02:24.160
<v Speaker 3>Game Stop lower today eBay Hire. Our earning season upon

0:02:24.240 --> 0:02:27.040
<v Speaker 3>us and we have got a busy week for earnings.

0:02:27.360 --> 0:02:29.480
<v Speaker 3>Last week was all about texts and I want to

0:02:29.520 --> 0:02:32.240
<v Speaker 3>switch gears. I want to move over to protein, meat

0:02:32.280 --> 0:02:35.480
<v Speaker 3>and chicken. We heard from Tyson this morning, Tyson shares

0:02:35.520 --> 0:02:38.880
<v Speaker 3>surging today by eight percent. What happened in the quarter?

0:02:39.160 --> 0:02:42.520
<v Speaker 1>Yeah, absolutely, Charlie, I mean, very good results from the

0:02:42.560 --> 0:02:45.400
<v Speaker 1>looks of it. So Tyson, of course the largest US

0:02:45.440 --> 0:02:48.720
<v Speaker 1>meat packer, raising its full your profit outlook, and they're

0:02:48.720 --> 0:02:52.280
<v Speaker 1>specifically citing strong demand for protein as the driver of

0:02:52.360 --> 0:02:55.680
<v Speaker 1>that move. They said the adjusted operating income will be

0:02:55.680 --> 0:02:58.000
<v Speaker 1>between two point two billion dollars and two point four

0:02:58.040 --> 0:03:00.919
<v Speaker 1>billion dollars in a full fiscal year, which is one

0:03:01.000 --> 0:03:04.720
<v Speaker 1>hundred million dollars more from the prior range. Now not

0:03:04.800 --> 0:03:07.320
<v Speaker 1>all good news though for the company. They did see

0:03:07.400 --> 0:03:10.600
<v Speaker 1>a wider loss in its beef operations. That's expected to

0:03:10.680 --> 0:03:13.480
<v Speaker 1>lose three hundred and fifty million to five hundred million

0:03:13.480 --> 0:03:15.960
<v Speaker 1>dollars for the full year of twenty twenty six. But

0:03:16.000 --> 0:03:19.600
<v Speaker 1>clearly what they're seeing in terms of protein demand in

0:03:19.639 --> 0:03:22.840
<v Speaker 1>general more than offsets that loss in beef, which is

0:03:22.840 --> 0:03:25.840
<v Speaker 1>probably that's probably driven by higher costs of beef than

0:03:25.880 --> 0:03:26.399
<v Speaker 1>anything else.

0:03:26.560 --> 0:03:29.720
<v Speaker 3>Yeah, so it doesn't necessarily come down to chicken versus beef.

0:03:29.800 --> 0:03:31.320
<v Speaker 3>This is other factors at play.

0:03:31.600 --> 0:03:33.880
<v Speaker 1>Yeah, it looks like it for sure, Charlie. But you know,

0:03:33.960 --> 0:03:36.640
<v Speaker 1>I mean, chicken over the last few years, just in general,

0:03:36.720 --> 0:03:40.160
<v Speaker 1>has been becoming more popular precisely because it is a

0:03:40.280 --> 0:03:43.160
<v Speaker 1>cheaper source of protein versus beef. And so we've seen

0:03:43.160 --> 0:03:46.680
<v Speaker 1>a number of restaurants, for instance, kind of leaning into

0:03:46.800 --> 0:03:48.920
<v Speaker 1>the demand for chicken wings and things like that. And

0:03:48.960 --> 0:03:52.240
<v Speaker 1>so that's probably something that is benefiting Tyson Foods as well,

0:03:52.280 --> 0:03:55.840
<v Speaker 1>helping it hold up in general despite the higher cost

0:03:55.920 --> 0:03:59.400
<v Speaker 1>of beef in the wider loss that's seen in that segment.

0:03:59.240 --> 0:04:03.280
<v Speaker 3>And the chairs up today by eight percent on Tyson Foods.

0:04:03.560 --> 0:04:08.160
<v Speaker 3>Let's move on now to a wild story involving delivery companies,

0:04:08.160 --> 0:04:12.800
<v Speaker 3>specifically the package delivery companies FedEx and UPS. Those shares

0:04:12.840 --> 0:04:16.320
<v Speaker 3>got hit hard today and this involves I'll let you

0:04:16.360 --> 0:04:19.359
<v Speaker 3>identify the company. It involves Amazon.

0:04:19.960 --> 0:04:22.560
<v Speaker 1>Who else? Right? Who else is big enough to rival

0:04:22.960 --> 0:04:26.680
<v Speaker 1>these established, well known carriers in the US. But that's

0:04:26.720 --> 0:04:29.760
<v Speaker 1>exactly why UPS shares down more than ten percent today.

0:04:29.800 --> 0:04:33.640
<v Speaker 1>That is because Amazon announced expanded logistics offerings that will

0:04:33.680 --> 0:04:37.320
<v Speaker 1>turn it into a major competitor for parcel carriers and

0:04:37.480 --> 0:04:40.680
<v Speaker 1>air freight companies such as FedEx and UPS, and so

0:04:40.839 --> 0:04:44.200
<v Speaker 1>investors really worried about how this is going to turn

0:04:44.240 --> 0:04:47.120
<v Speaker 1>Amazon into a more direct competitor. At the moment. There's

0:04:47.160 --> 0:04:50.360
<v Speaker 1>a bit of a symbiotic relationship here, right because Amazon,

0:04:50.440 --> 0:04:53.720
<v Speaker 1>you know, as primarily an online retailer, still tends to

0:04:54.440 --> 0:04:58.560
<v Speaker 1>rely in some respects on UPS and FedEx services. I

0:04:58.640 --> 0:05:02.520
<v Speaker 1>know personally that I've received Amazon packages delivered via FedEx.

0:05:02.560 --> 0:05:05.320
<v Speaker 1>But now that Amazon is kind of really diving into

0:05:05.360 --> 0:05:08.720
<v Speaker 1>the space, there is potential for the retailer to become

0:05:08.760 --> 0:05:11.880
<v Speaker 1>a one stop shop retailer and also a delivery company.

0:05:12.040 --> 0:05:15.680
<v Speaker 3>And again, FedEx down nine percent, worse day in more

0:05:15.839 --> 0:05:16.320
<v Speaker 3>than a year.

0:05:18.040 --> 0:05:22.080
<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

0:05:22.160 --> 0:05:24.680
<v Speaker 2>us throughout the day for the latest roundup of companies

0:05:24.800 --> 0:05:27.920
<v Speaker 2>making news on Wall Street and for the latest market

0:05:27.920 --> 0:05:32.400
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:05:32.480 --> 0:05:36.000
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:05:36.040 --> 0:05:37.560
<v Speaker 2>the Bloomberg Business app.