WEBVTT - Carnival Falls, CarMax Drops, Constellation Lower on Tariffs

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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.

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<v Speaker 3>Let's stroll down to the stocks on the move today,

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<v Speaker 3>and for that we go to Isabelle Lee boomer Cross

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<v Speaker 3>as a reporter or what are you looking at?

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<v Speaker 1>Carnival? It's etching lower by now, actually more than nine percent.

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<v Speaker 1>Carnival upgraded. So Morgan Stanley upgraded Carnival rather to equal

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<v Speaker 1>ways from underweight. So the analyst said that a lot

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<v Speaker 1>of bad news seems to be priced into the Creuse

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<v Speaker 1>stocks given share price to clients. So basically it's a

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<v Speaker 1>risk reward looks fair now, But why is the stock

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<v Speaker 1>plunging on this? They did reduce their price target to

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<v Speaker 1>twenty one dollars from the previous twenty five dollars, and

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<v Speaker 1>Creuse stocks in general have really seen a huge drop

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<v Speaker 1>this year from here today highest averaging around forty one percent.

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<v Speaker 1>But I feel like an analyst say this, you would

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<v Speaker 1>want to steer clear of the crew sector when there's

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<v Speaker 1>a recession or an imminet recession, because who would be

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<v Speaker 1>taking cruises? Well, I think cruise people are pretty passionate people.

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<v Speaker 1>I mean, it's almost like a utility to them.

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<v Speaker 2>I don't know, but you're right, that's a discretionary spec

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<v Speaker 2>I've never been to.

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<v Speaker 3>A cruise either, no one here has, so we can't

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<v Speaker 3>really say I'm Also, you've got a peril and furnishings

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<v Speaker 3>also falling in the CPI, so if you put them

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<v Speaker 3>all together, maybe you're seeing a little bit of broader

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<v Speaker 3>weakness there. What else you're looking at?

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<v Speaker 1>CarMax this is a big drop because it's down by

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<v Speaker 1>almost seventeen percent, So they back away from the timing

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<v Speaker 1>of their financial goals. They really just join a long

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<v Speaker 1>list of companies doing that. Delta is a recent example.

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<v Speaker 1>They pulled their twenty twenty five profit guidance. So CarMax

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<v Speaker 1>is a used car retailer. They did make progress towards

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<v Speaker 1>their target, they said they will, but they didn't give

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<v Speaker 1>any timeline. Trump's, however, are expected to hit the auto

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<v Speaker 1>sector in particular with a twenty five percent levey of imports.

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<v Speaker 1>We have car buyers rushing to dealer lots last buck.

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<v Speaker 1>So really this is we're going to see if drops

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<v Speaker 1>even more today. But it's really suffering steep yeah.

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<v Speaker 2>I mean, I bought my car a few weeks ago.

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<v Speaker 2>I wasn't thinking about the tariffs, but maybe that was

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<v Speaker 2>happening that maybe that was good timing. You know.

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<v Speaker 3>He sounds like he bought the car for himself. Let's

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<v Speaker 3>just be clear. This was an offspring.

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<v Speaker 2>Purchase, right, Yeah, and we released it for the officers.

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<v Speaker 3>But this was a very good elite at the end

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<v Speaker 3>of the day. And also just goes to show in

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<v Speaker 3>a tough tape, right, the story about Delton not having

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<v Speaker 3>guidance very different than like a car max et cetera.

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<v Speaker 1>What else. Lastly, Constellation so all stocks in the red.

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<v Speaker 1>This is also in the red down four percent. So

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<v Speaker 1>they are a beer, wine and spirits maker. They issued

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<v Speaker 1>downbeat guidance, weighed by new tariffs and really muted demand.

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<v Speaker 1>So the company expects earnings to be lower than estimates

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<v Speaker 1>for twenty twenty six fiscal year. But this already factors

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<v Speaker 1>in the tariffs, because we've also heard a lot of

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<v Speaker 1>companies not factoring in tariffs. We have true with Security

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<v Speaker 1>saying they were surprised that company offered guidance at all.

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<v Speaker 1>Even before this, Constellation has been struggling with lackluster sales

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<v Speaker 1>because we all know that alcohol demand has really been thinking.

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

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