WEBVTT - Tesla Slides Again; Capital One and Discover; Hertz Pulls Back

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

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data does.

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<v Speaker 3>Take a look right now with some of the stocks

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<v Speaker 3>on the move today with Lisa and tell you, Lisa.

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<v Speaker 1>What do you have?

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<v Speaker 4>All Right, We're starting with Tesla because their shares have

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<v Speaker 4>been down more than four percent before the bell reports

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<v Speaker 4>earnings tomorrow. Right, but the big thing is that web

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<v Speaker 4>Bush Security is analyst Dan Ives. He said the company

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<v Speaker 4>faces this quote code red moment as it prepares for

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<v Speaker 4>that earnings report. He also pointed out that Elon Musk

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<v Speaker 4>should step back from his work at DOGE to focus

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<v Speaker 4>on Tesla. He says that an involvement in the White

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<v Speaker 4>House has really led to this brand damage in the company.

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<v Speaker 4>If you remember two weeks ago, two Ives he slashed

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<v Speaker 4>the price target for Tesla stock by forty three percent.

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<v Speaker 4>So that's one piece. Then you have another piece. They

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<v Speaker 4>have Barclays lowering its price target on Tesla. That happened

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<v Speaker 4>late Thursday. And then you have this report from Reuter's

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<v Speaker 4>out out that Tesla is delaying the launch of those

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<v Speaker 4>more affordable cars it's been talking about giving these you know,

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<v Speaker 4>more affordable evs, but now they're saying that that could

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<v Speaker 4>be delayed. So it's kind of it's pushing down the

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<v Speaker 4>max step, but it's leading the losses in the MAC event.

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<v Speaker 3>Right too long weekend here, I mean, am I right?

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<v Speaker 3>Mister Musk has sort of disappeared. Maybe he's that good tesla.

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<v Speaker 1>I don't know.

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<v Speaker 5>It's interesting, but when he lose Dan ives, that's a

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<v Speaker 5>that's a challenge for the stock, I would say, So

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<v Speaker 5>we'll see how that plays out. But again, most definitely

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<v Speaker 5>the fundamentals are concerning to a lot of people.

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<v Speaker 3>On Fifth Avenue this weekend and they get claimed Easter Parade,

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<v Speaker 3>which is a.

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<v Speaker 1>Really wonderful celebration. He was just dressed normal, exactly.

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<v Speaker 4>I know these two dollars, I'm sure. So I want

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<v Speaker 4>to point out Capital one Financial. Their shares have been

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<v Speaker 4>up about four percent this morning, the reason why bank

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<v Speaker 4>regulators approved their thirty five billion dollar acquisition of Discover.

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<v Speaker 4>Now this happened late Friday. Of Discover shares are rising too,

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<v Speaker 4>They're up about as much as seven percent. But it

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<v Speaker 4>could create the nation's biggest credit card issuer by loan volume.

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<v Speaker 4>But the reason why this is kind of standing out

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<v Speaker 4>is because this decision was awaiting whether the DOJ would

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<v Speaker 4>sue to block the acquisition. People were waiting for that.

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<v Speaker 4>Some were worried it could harm competition, but then you

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<v Speaker 4>had Antitrust Division chief said that there wasn't enough evidence

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<v Speaker 4>to challenge that. So it's expected to close on May eighteenth.

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<v Speaker 4>But it really could unlock some things for Capital One.

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<v Speaker 4>For one, it could unlock at least one point two

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<v Speaker 4>billion dollars in annual revenue because in the past they

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<v Speaker 4>only had to rely on Vison MasterCard and that was

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<v Speaker 4>it for them to issue its credit cards. But with

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<v Speaker 4>Discover they can kind of cut out the middlemen and

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<v Speaker 4>then have more control over the prices that merchant all

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<v Speaker 4>charge every time that you can someone swipes one of

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<v Speaker 4>its credit cards. So that was kind of interesting there.

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<v Speaker 4>And then if we check back in with stocks that

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<v Speaker 4>were moving before the holiday, before we had the break

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<v Speaker 4>right that some of them are still moving, but some

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<v Speaker 4>in a different direction. For example, if you remember we

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<v Speaker 4>talked about Hurts last week, right they had that big

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<v Speaker 4>rally news Bill Ackman's person square taking big steak in

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<v Speaker 4>the company. But if we look at the shares before

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<v Speaker 4>the bell, they're off as much as twelve percent, So

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<v Speaker 4>that's a big turnaround for Hurts. And then you have

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<v Speaker 4>Netflix still riding that wave. It shares are up about

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<v Speaker 4>three percent. Results after the bell showed right before the holiday,

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<v Speaker 4>forecasted revenue the second quarter beat on estimates, but also

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<v Speaker 4>only see the company's business as resilient. That's how they're

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<v Speaker 4>describing it. So Netflix kind of still riding.

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<v Speaker 1>What do you think, Paul?

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<v Speaker 5>Yeah, absolutely, I agree with all of that. I mean,

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<v Speaker 5>we'll see here, they're trying to push through a lot

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<v Speaker 5>of you know, the price increases across the board, of

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<v Speaker 5>trying to drive up their advertising revenue, and that whole

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<v Speaker 5>password sharing thing that work wrote down on.

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<v Speaker 3>That Disney's out with and or like soon this weekend.

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<v Speaker 3>I guess it did well. I watched a couple episodes

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<v Speaker 3>and stop watching it.

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<v Speaker 1>But who's number two?

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<v Speaker 3>Well?

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<v Speaker 1>Is there a number two?

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<v Speaker 3>Well?

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<v Speaker 5>I think it's streaming. Disney is a clear number two.

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<v Speaker 5>They are profitable, But what's it mean to be number

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<v Speaker 5>two these days? At this point, it doesn't seem like

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<v Speaker 5>a whole lot, but there if you look at the

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<v Speaker 5>profitability for their streaming business, it does ramp up a pretty.

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<v Speaker 1>Second, try and compete because they have the biggest.

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<v Speaker 5>Catalog, right Almison Prime's got, you know, the biggest balance

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<v Speaker 5>sheets so they can buy their way.

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<v Speaker 3>This is Keens watching Step with Queen and Candas Bergen

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<v Speaker 3>this weekend.

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<v Speaker 1>The Netflix doesn't have that.

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<v Speaker 3>That's you know, that's a movie, Lisa, Candae Bergen.

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<v Speaker 4>Okay, remember that you mentioned Zizzy. Actually they were upgraded

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<v Speaker 4>to Apple form at Wolf Research, so see's getting a

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<v Speaker 4>little upgrade there.

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

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