WEBVTT - EchoStar Jumps, CRH Surges, Spotify Drops on CEO Change

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

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<v Speaker 2>Stock Movers Report, 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>Take a look at some of the stocks on the

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<v Speaker 3>move today. I'm Paul Swing alongside Scarlett Foo and we're

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<v Speaker 3>drawn by Bloomergs Billy Lipschaltz.

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<v Speaker 4>Billy. What are you looking at today?

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<v Speaker 5>Yeah, diving a bit deeper on EchoStar ticker SATs stock

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<v Speaker 5>right now only up about one percent, had jumped more

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<v Speaker 5>than five percent. But this is coming after Bloomberg News

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<v Speaker 5>report that the company is in talks to sell Spectrum

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<v Speaker 5>some of its wireless spectrum to Verizon Communications. So this

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<v Speaker 5>comes after deals with AT and T and SpaceX for

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<v Speaker 5>some of those licenses. Bloomberg reporting that it probably wouldn't

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<v Speaker 5>be the case for this Verizon deal to carry the

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<v Speaker 5>value of some of those deals, you know, north of

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<v Speaker 5>billions of dollars. But we are certainly seeing a rally

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<v Speaker 5>this morning in shares of Echo Star. This is a company, guys,

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<v Speaker 5>that has been trying to work its way out and

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<v Speaker 5>stave off bankruptcy and dealing with some of the pushback

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<v Speaker 5>from US regulators so kind of reworking its business, reworking

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<v Speaker 5>its opportunities in terms of turning those contracts in some

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<v Speaker 5>of that spectrum into actual cash in their pockets. Stock

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<v Speaker 5>year to date up more than two hundred and twenty

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<v Speaker 5>five percent, so out performing uh, those ten.

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<v Speaker 4>Waiting decade for this performance.

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<v Speaker 3>Literally we've been sitting there for twelve years. Charlie Ergan.

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<v Speaker 3>Investors like I have always been a Charlie Urgan backer.

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<v Speaker 3>You both the spectrum like thirteen fourteen years ago, and

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<v Speaker 3>either you're going to build its wireless network with this

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<v Speaker 3>country doesn't need, or you're going to sell the spectrum,

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<v Speaker 3>which is always valuable to somebody else.

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<v Speaker 4>But he waited a long time forever.

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<v Speaker 3>So my IRR is like, I don't know, but it

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<v Speaker 3>was just finally, finally, shareholders and bondholders are going to

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<v Speaker 3>I think.

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<v Speaker 5>Yeah, trading in about seventy five bucks a pop, was at

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<v Speaker 5>fifty back in twenty seventeen. Just don't look back towards

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<v Speaker 5>two thousand and eight, two thousand and nine. If you've

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<v Speaker 5>been holding on for.

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<v Speaker 3>The Steel Dish Satellite TV company. Okay, just I vented

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<v Speaker 3>there because it was acad No.

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<v Speaker 4>No, you should have vent after waiting this long.

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<v Speaker 1>Let's talk about rh which is a building materials company

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<v Speaker 1>and those years are up almost five percent.

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<v Speaker 5>Yeah, rallying this morning. This is a company that is

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<v Speaker 5>listed in London but had pivoted its primary listing to

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<v Speaker 5>Hear in the US. This comes after the supply makers,

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<v Speaker 5>so cement think of things like that, laying out midterm

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<v Speaker 5>targets for revenue and growth ibadad margins into twenty thirty,

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<v Speaker 5>so they see this year they're adjusted ebitat between seven

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<v Speaker 5>and a half billion and seven point seven billion. That's midpoints,

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<v Speaker 5>just above what Wall Street was looking for. But when

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<v Speaker 5>you look at the first blush reaction from analysts really

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<v Speaker 5>talking up the fact that they're laying out financial targets

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<v Speaker 5>four or five years into the future, averaging an annual

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<v Speaker 5>revenue between seven and nine percent. So a slow growing business,

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<v Speaker 5>a building's material business that has really rallied pretty tremendously

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<v Speaker 5>since that April bottom on the year, returning about thirty percent,

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<v Speaker 5>so a big winner for the company. Again, also has

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<v Speaker 5>done tremendously well since it pivoted its primary listing to

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<v Speaker 5>HEAR the US. But with all the talk about the

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<v Speaker 5>need for spending not only on infrastructure in the US,

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<v Speaker 5>but around the world really playing out for that company.

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<v Speaker 5>And this comes ahead of a capital markets day hosted

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<v Speaker 5>by the company today here in New York. Building Products,

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<v Speaker 5>Building Products, boring company short rallying this morning, but one

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<v Speaker 5>company that could be a bit more fun to talk

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<v Speaker 5>about is Spotify tick er Spot down about five percent today.

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<v Speaker 5>That's the biggest drop for the company since July twenty ninth.

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<v Speaker 5>This coming after its CEO, Daniel L. Eck, planning to

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<v Speaker 5>step aside after almost two decades leading the company. They

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<v Speaker 5>said that their chief Product and Technology Officer chief business

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<v Speaker 5>officer are going to take the rains jointly effective January first.

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<v Speaker 5>So this is a big move for a company that

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<v Speaker 5>was co founded by ec back in two thousand and six. Guys,

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<v Speaker 5>I think if you're forty two and stepping away from

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<v Speaker 5>being CEO of a company, not a bad move. I'm

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<v Speaker 5>not quite there, maybe someday soon. But the stocks still

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<v Speaker 5>year to date returning about fifty six percent, so lapping

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<v Speaker 5>the Russell one thousand, which it would be compighence which

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<v Speaker 5>is up about fourteen percent. So a big run for

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<v Speaker 5>Spotify since they since he took the company public. But

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<v Speaker 5>again giving back some of those recent games down about

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<v Speaker 5>five percent.

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<v Speaker 3>I kind of view it was kind of the Netflix

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<v Speaker 3>of the audio business.

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<v Speaker 4>Yeah, a little bit of a utility.

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<v Speaker 1>But you know, as you mentioned, he's forty two, So

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<v Speaker 1>is he stepping away in quote marks or is he

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<v Speaker 1>really stepping away? Yeah?

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<v Speaker 5>In there he's going to have kind of oversight and

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<v Speaker 5>still work with the company, but handing over kind of

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<v Speaker 5>the view going to provide some support and some guidance.

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<v Speaker 5>The interesting thing I remember talking to someone who's been

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<v Speaker 5>a Spotify bull for quite some time, and his kind

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<v Speaker 5>of base case was, this is a company that can

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<v Speaker 5>continue to hike prices as much as they want, and

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<v Speaker 5>consumers are going to kind of shrug off if their

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<v Speaker 5>streaming service goes from thirteen to sixteen to eighteen dollars

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<v Speaker 5>a month, just.

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<v Speaker 1>Because I shrugging off. Complain loudly while it's happening.

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<v Speaker 4>But are you a Spotify user?

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<v Speaker 1>I am, and I've watched the prices go up steadily

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<v Speaker 1>every year and complain about it.

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<v Speaker 3>Oh Ridge, go, he's We've got him at nine point

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<v Speaker 3>eight billion in fifty third.

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<v Speaker 4>Ranked again forty two years old.

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<v Speaker 3>Paul, fantastic, great service, great great service, good for him

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<v Speaker 3>stepping away.

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

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