WEBVTT - Mattel Tumbles; Lyft Sinks; KraftHeinz Falls

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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 1>Let's take a look at some stocks on the move today.

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<v Speaker 1>Alexis christoffers looking a myriad of earnings today.

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<v Speaker 3>Myriad is the right word for it. I want to

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<v Speaker 3>start with what I called earlier our loser DuJour, which

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<v Speaker 3>is Mattel. Sorry, Barbie, but this stock is now down

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<v Speaker 3>twenty nine percent pre market. It's price target was lowered

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<v Speaker 3>over at Jeffreys this morning, down to nineteen dollars from

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<v Speaker 3>twenty five dollars a share. So the holiday period, the

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<v Speaker 3>bread and butter right for these companies was disappointing. For Mattel.

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<v Speaker 3>A lot of retailers also offered big promotions that squeezed margins.

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<v Speaker 3>But I think what really is getting investors down is

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<v Speaker 3>its full year guidance. It is considerably lower than expected.

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<v Speaker 3>Remember we had Hasbro a few day is ago. Much

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<v Speaker 3>different story, Yes, uh, you know, much better than expected,

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<v Speaker 3>actually better than next.

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<v Speaker 4>The digital games their house. I think David bigger games.

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<v Speaker 4>That's what I learned yesterday. We spoke to the toy analyst.

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<v Speaker 1>Learning they're moving from Rhode Island. They're moving from Rhode

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<v Speaker 1>Island up to Boston, really okay, and they want to

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<v Speaker 1>get closer to Durgan Parks. The problem here, alexis you

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<v Speaker 1>don't remember this because I grew up in a Barbie

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<v Speaker 1>thon with with with my kids, particularly the middle child.

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<v Speaker 1>And what's important here is Barbie on the go sled

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<v Speaker 1>toboggan was a must have in the house, okay. And

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<v Speaker 1>that's a precursor for Barbie luge. So maybe they'll bounce

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<v Speaker 1>back after the Olympics.

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<v Speaker 3>She's in the Olympics. I didn't I didn't realize, but yeah,

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<v Speaker 3>I used to step on, you know, Barbie heads and

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<v Speaker 3>arms and what have you in my house. And apparently

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<v Speaker 3>that you know, sales are slumping.

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<v Speaker 1>In Mattapoisse at Massachusetts. There's a drive by. It's a

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<v Speaker 1>house where the entire front lawn is Barbie now all year,

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<v Speaker 1>where the snow's piled up. They don't care.

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<v Speaker 3>Mittel loves them.

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<v Speaker 1>It's first good.

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<v Speaker 3>Maybe that they'll send them some free Barbies next, all right,

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<v Speaker 3>lift Oh yes, oh my gosh. Down sixteen percent right now.

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<v Speaker 3>Disappointing forecast A surprise revenue miss. It's still going to

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<v Speaker 3>buy back though a billion dollars up its own stock,

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<v Speaker 3>So confidence I guess in the company there. But it's

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<v Speaker 3>got this global expansion, new product offerings. We saw the

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<v Speaker 3>same thing over at Uber when they're moving away from

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<v Speaker 3>their core business. It seems that investors don't love it,

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<v Speaker 3>and so they're punishing the stock as a result.

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<v Speaker 4>This is a case study for me Uber and lyft

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<v Speaker 4>Ipel about the same time. At that time they were

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<v Speaker 4>kind of the same companies. Boy had those passp diverged.

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<v Speaker 4>Since the IPO lift is six seven eight nine million

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<v Speaker 4>and one hundred plus billion market capture, the revenues eight

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<v Speaker 4>times fifty ish gazillion, it lift is six gazillion. Yeah,

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<v Speaker 4>it's just crazy. I mean, it's like talk about it's

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<v Speaker 4>the version there. All right, Well, so do you.

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<v Speaker 3>Have one more for us?

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<v Speaker 4>I do.

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<v Speaker 3>We've got to talk craft times right down nearly eight

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<v Speaker 3>percent right now. That's on top of its one year

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<v Speaker 3>return of minus sixteen percent. So it's going to pause

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<v Speaker 3>that propose split into two separate companies. Remember it wanted

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<v Speaker 3>to take like its its grocery store staples business. Oscar

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<v Speaker 3>Myers meets lunchables, it wanted to cut that off from

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<v Speaker 3>its faster growing sauces and seasonings business. Warren Buffett didn't

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<v Speaker 3>like that. He actually called the breakup disappointing. Remember he's

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<v Speaker 3>the one who brought the two together in twenty fifteen.

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<v Speaker 3>So Kraft Times as a new CEO, he says he

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<v Speaker 3>sees opportunities ahead. That's CEO speak for Craft Times, where

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<v Speaker 3>he wants to keep them together until he can make

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<v Speaker 3>them strong enough to separate. So he's going to invest

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<v Speaker 3>six hundred million dollars to turn the group around. Of course,

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<v Speaker 3>this is the company behind Hines Ketchup and Philadelphia Cream Cheese,

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<v Speaker 3>so we'll see if it works. But there's an analyst

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<v Speaker 3>over at td cowan Robert Moscow. He says this indicates

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<v Speaker 3>the business not strong enough to operate on a standalone basis,

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<v Speaker 3>so we'll have to see when investors get on board

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<v Speaker 3>with this planned to split into two.

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