WEBVTT - Walmart Drops, Netflix Falls, Reddit Drops After Downgrade

0:00:02.520 --> 0:00:09.959
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The stock Movers report,

0:00:10.280 --> 0:00:13.440
<v Speaker 1>your roundup of companies making moves in the stock market,

0:00:13.680 --> 0:00:17.560
<v Speaker 1>harnessing the power of Bloomberg data. Let's get a sense

0:00:17.560 --> 0:00:19.720
<v Speaker 1>of what's happening in the markets today with stock movers.

0:00:19.720 --> 0:00:22.479
<v Speaker 1>It needs a so Covid Joints, CROs Asset reporter or

0:00:22.560 --> 0:00:24.040
<v Speaker 1>Bloomberg News. They need to what are you looking at.

0:00:24.280 --> 0:00:26.440
<v Speaker 2>Let's take a look at Walmart. Obviously there was that

0:00:26.600 --> 0:00:30.080
<v Speaker 2>tree from the president. Shares tumbled as much as two

0:00:30.120 --> 0:00:34.479
<v Speaker 2>point five percent. Now some of those losses have been erased.

0:00:34.560 --> 0:00:37.600
<v Speaker 2>Let's steal the stock is down today. So President Trump

0:00:37.680 --> 0:00:41.280
<v Speaker 2>telled the retailer that they should eat the tariffs, which

0:00:41.320 --> 0:00:44.280
<v Speaker 2>is an interesting announcement because we had actually scolled bess

0:00:44.320 --> 0:00:47.280
<v Speaker 2>And on the weekend talking to NBC saying that he

0:00:47.320 --> 0:00:50.320
<v Speaker 2>has already spoken to Walmart and they have said that

0:00:50.400 --> 0:00:54.920
<v Speaker 2>indeed they will they will absorb some of those tariffs.

0:00:55.480 --> 0:00:59.560
<v Speaker 2>But of course, some of the statements Walmart gave him

0:00:59.560 --> 0:01:03.080
<v Speaker 2>their earning and on my on May fifteenth is that

0:01:03.600 --> 0:01:07.120
<v Speaker 2>the tirefts are increasing economic turbulence and consumers may start

0:01:07.160 --> 0:01:10.400
<v Speaker 2>to see some of those effects in May. Of course,

0:01:10.440 --> 0:01:14.919
<v Speaker 2>Trump is saying that the company has made billions last

0:01:15.000 --> 0:01:18.959
<v Speaker 2>year and there the reason to raise prices is not tied.

0:01:19.080 --> 0:01:20.959
<v Speaker 2>So there is a lot of pressure for yet to

0:01:21.000 --> 0:01:22.840
<v Speaker 2>see how is this going to play out. There hasn't

0:01:22.880 --> 0:01:27.040
<v Speaker 2>been a big pushback from Walmart, so but yeah, small

0:01:27.080 --> 0:01:29.880
<v Speaker 2>pressure today on the stock for sure. Also taking a

0:01:29.920 --> 0:01:33.640
<v Speaker 2>look at Netflix here the analyst community weighing in on

0:01:33.680 --> 0:01:36.400
<v Speaker 2>this one. Yeah, and it's it's a record high after

0:01:36.480 --> 0:01:38.960
<v Speaker 2>record hig record high, and that's why that's that's why

0:01:38.959 --> 0:01:43.479
<v Speaker 2>they're weighing on. JP Morgan downgraded it too neutral from overweight.

0:01:43.720 --> 0:01:46.679
<v Speaker 2>There are no big alarms, there are no big reasons Saturday.

0:01:46.720 --> 0:01:49.680
<v Speaker 2>It's expensive. There has been record high. The stock is

0:01:49.720 --> 0:01:53.640
<v Speaker 2>a thirty percent year today after another amazing year last year.

0:01:54.520 --> 0:01:57.000
<v Speaker 2>So the reason is just like a more balanced risk

0:01:57.080 --> 0:02:01.520
<v Speaker 2>reward in that that streaming space. Interesting thing is that

0:02:01.600 --> 0:02:05.640
<v Speaker 2>they say that Netflix was a defensive place during all

0:02:05.680 --> 0:02:08.840
<v Speaker 2>the Tift tourmoil, and now that some of this has eased,

0:02:08.880 --> 0:02:12.960
<v Speaker 2>maybe investors won't be as interested. JP Morgan says that

0:02:13.080 --> 0:02:17.200
<v Speaker 2>following a significant stock price appreciation and outperformance, it's lowering

0:02:19.000 --> 0:02:21.200
<v Speaker 2>the way they have on Netflix. But still obviously there

0:02:21.200 --> 0:02:23.320
<v Speaker 2>are so many by ratings on the stock and it's

0:02:23.320 --> 0:02:26.359
<v Speaker 2>a clear winner this year. Anything else out there, we're

0:02:26.400 --> 0:02:29.280
<v Speaker 2>only as read it. That's an interesting one because I

0:02:29.320 --> 0:02:31.079
<v Speaker 2>actually use it a lot for my reporting, and I've

0:02:31.120 --> 0:02:34.120
<v Speaker 2>been seeing it less and less when I Google stuff,

0:02:34.160 --> 0:02:37.040
<v Speaker 2>and that's one of the reasons we're seeing a big

0:02:37.120 --> 0:02:42.160
<v Speaker 2>hit today. Wells Fargo downgraded to equal weights and it's

0:02:42.200 --> 0:02:46.400
<v Speaker 2>coming off all those changes Google is implementing in their algorithm.

0:02:46.800 --> 0:02:50.200
<v Speaker 2>Unless they're saying that recent user disruptions are likely to

0:02:50.240 --> 0:02:54.240
<v Speaker 2>be more permanent, Google is implementing all those AI features

0:02:54.240 --> 0:02:58.840
<v Speaker 2>in search which are really changing how some websites, including Reddit,

0:02:59.080 --> 0:03:03.600
<v Speaker 2>are at. The threats are not only to Reddit but

0:03:03.760 --> 0:03:07.120
<v Speaker 2>to all the companies dependent upon search traffic. Read It

0:03:07.400 --> 0:03:11.120
<v Speaker 2>is down thirty four percent here today, so clearly that's

0:03:11.160 --> 0:03:13.800
<v Speaker 2>an interesting one to watch that's very dependent on Google

0:03:13.880 --> 0:03:14.280
<v Speaker 2>right now.

0:03:15.760 --> 0:03:19.800
<v Speaker 1>The stock movers report from Bloomberg Radio. Check back with

0:03:19.880 --> 0:03:22.440
<v Speaker 1>us throughout the day for the latest roundup of companies

0:03:22.520 --> 0:03:25.640
<v Speaker 1>making news on Wall Street and for the latest market

0:03:25.639 --> 0:03:30.120
<v Speaker 1>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:03:30.200 --> 0:03:33.720
<v Speaker 1>Bloomberg dot com, and on Applecarplay and Android Auto with

0:03:33.800 --> 0:03:35.280
<v Speaker 1>the Bloomberg Business app.