WEBVTT - Closing Bell: McDonald's Growth Beats Estimates, Micron Gains, Lyft Sinks

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

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<v Speaker 2>This is the closing bell on this stock movers report

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<v Speaker 2>the company's making moves at the close of US trading

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<v Speaker 2>with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifeler.

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<v Speaker 3>Remember, in an environment where consumers are focused on value,

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<v Speaker 3>that's exactly what McDonald's is leaning into and has been.

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<v Speaker 3>The company's chairman and CEO Chris Kemsinski saying that McDonald's

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<v Speaker 3>value leadership is working quote by listening to customers and

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<v Speaker 3>taking action, we have improved traffic and strengthened our value

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<v Speaker 3>and affordability scores. That focus helped increase global system wide

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<v Speaker 3>sales by eight percent, delivered strong comp sales growth across

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<v Speaker 3>all segments this quarter. The momentum we've built reinforces the

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<v Speaker 3>progress we've made with our strategy and has earned us

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<v Speaker 3>the right to look forward together as a system.

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<v Speaker 1>All right, So, just to rehash, we've got now McDonald's

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<v Speaker 1>bouncing around here but up about two point seven percent

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<v Speaker 1>here in the aftermarket again, US sales growing at the

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<v Speaker 1>fastest pace in more than two years in the fourth quarter.

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<v Speaker 1>Value meals continue to resonate with cost conscious diners companies

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<v Speaker 1>focus on affordability helped improve traffic in the fourth quarter.

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<v Speaker 1>Diners also spending more per visit in the United States

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<v Speaker 1>due to successful marketing promotions. That's the words of the company,

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<v Speaker 1>and so our team kind of doing some analysis. Red

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<v Speaker 1>Brown thank you so much at Bloomberg News, saying that

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<v Speaker 1>the results suggests that McDonald's gaining markets share as consumers

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<v Speaker 1>change their spending habits in response to higher costs, despite

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<v Speaker 1>its decline in operating margin that did miss Wall Street expectations.

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<v Speaker 1>Always keeping an eye on margins. All right, as we

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<v Speaker 1>watch for some more earnings, including Cisco to report after

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<v Speaker 1>the closing bell, let's go to some of the individual gainers.

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<v Speaker 1>This was the number one gainer in the S and

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<v Speaker 1>P five hundred. We're talking about Generak holdings, this one

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<v Speaker 1>finishing just off its highs of the day, but still

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<v Speaker 1>good enough for gain of about eighteen percent in the

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<v Speaker 1>Wednesday trade maker of Generators forecasting a twenty twenty six

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<v Speaker 1>ebit of margin range with the midpoint above Alics consensus.

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<v Speaker 1>We should point out that net sales for the fourth

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<v Speaker 1>quarter did miss analyst estimates, but Kibang coming out and

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<v Speaker 1>saying that they do expect shares to trade higher on

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<v Speaker 1>that twenty twenty six outlook and positive data center developments.

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<v Speaker 1>Keep in mind the stocks up about sixty percent year

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<v Speaker 1>to date, third best performer in the s and P

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<v Speaker 1>five hundred. Here in twenty twenty six, we caught up

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<v Speaker 1>with the company's CEO and they really entered big time

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<v Speaker 1>in the fourth quarter into the AI world, and that's

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<v Speaker 1>by offering up some large megawatt generators. So that is

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<v Speaker 1>a big play in big generator huh pun intended when

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<v Speaker 1>it comes to their financials going forward, So some good

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<v Speaker 1>stuff there. This is when we don't talk about tickers

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<v Speaker 1>s w Smurfitt, West Rock and that one finishing with

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<v Speaker 1>a gain of just shy of ten percent. Stock is

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<v Speaker 1>up about thirty percent year to date and again a

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<v Speaker 1>top gainer in the SMP five hundred, up the most

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<v Speaker 1>I think since around July of twenty twenty four, after

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<v Speaker 1>the packaging company reported adj justa ibita for the fourth

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<v Speaker 1>quarter that beat the average analyst estimate. So some outperformance there.

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<v Speaker 1>And one more Micron Technology great reader when it comes

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<v Speaker 1>to the semi space, up almost ten percent in today's session,

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<v Speaker 1>a top gainer in the Nasdaq one hundred. The company

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<v Speaker 1>CFO Mark Murphy assuring investors at the company is producing

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<v Speaker 1>it's new much prized HBM four memory chips in high volumes.

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<v Speaker 1>That product line is the leadst generation of Micron's high

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<v Speaker 1>bandwidth memory now being delivered to customers. Murphy coming out

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<v Speaker 1>saying this during a research event put on by Wolf Research,

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<v Speaker 1>and that stock is up about forty percent year to day.

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<v Speaker 3>Tim All right, Well, Cisco just crossing second quarter adjusted

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<v Speaker 3>earnings per share did beat estimates, second quarter adjusted gross margin,

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<v Speaker 3>coming in shy of estimates at sixty seven point five percent.

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<v Speaker 3>Second quarter services revenue. This is a look back three

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<v Speaker 3>point seven one per billion dollars. That beat estimate. Second

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<v Speaker 3>quarter adjusted EPs beat estimates at a dollar four. Second

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<v Speaker 3>quarter product revenue beat estimates at eleven point six four

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<v Speaker 3>billion dollars. Second quarter revenue all in coming in just

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<v Speaker 3>above estimates at fifteen point three billion dollars. Here's the

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<v Speaker 3>red headline, though, and it's the outlook. Cisco sees fiscal

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<v Speaker 3>You're adjusted earnings per share four dollars and thirteen cents

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<v Speaker 3>to four dollars and seventeen cents. The company saw four

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<v Speaker 3>dollars and eight cents to four dollars and fourteen cents

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<v Speaker 3>after hours, Scarlett Cisco shares hired by about one point

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<v Speaker 3>five percent.

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<v Speaker 4>Yeah, you gave the bottom line outlook from Cisco. Here's

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<v Speaker 4>the top line outlook from Cisco. Full your revenue sixty

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<v Speaker 4>one point two billion to sixty one point seven billion.

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<v Speaker 4>Previously it had seen sixty point two billion to sixty

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<v Speaker 4>one billion, so raising the range of its revenue forecast.

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<v Speaker 4>There you can see the stock currently up about one

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<v Speaker 4>point three percent at the moment, all the company boosting.

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<v Speaker 3>It's dived in two percent as well, to forty two

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<v Speaker 3>cents per share. Just a little preview for what we

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<v Speaker 3>got coming up in just a few minutes. Wou Jinho

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<v Speaker 3>is senior Hardware, a networking analyst. He's on set with

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<v Speaker 3>us right now. He's listening, he's looking at the Bloomberg.

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<v Speaker 3>He's taken notes for what we're going to be talking about.

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<v Speaker 3>Cisco shares hired by about one one point one percent

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<v Speaker 3>in the after hours. Let's go to some of the

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<v Speaker 3>decliners on the day. Will we potentially await more earnings

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<v Speaker 3>and analysis shares A Mattel look at this twenty five

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<v Speaker 3>percent to the downside. This is the biggest plunge going

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<v Speaker 3>back to nineteen ninety nine. Holiday results fell short of

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<v Speaker 3>analysts estimates. The company issued a twenty twenty six forecast

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<v Speaker 3>for lower profit. The stock was up six point one

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<v Speaker 3>percent through the year. For the close of regular trading yesterday,

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<v Speaker 3>fourth quarter earnings excluding some items total thirty nine cents

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<v Speaker 3>a share, that missed the fifty four cent average of

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<v Speaker 3>analysts estimates. The company said that shortfall in December sales

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<v Speaker 3>in the US that grew less than projected also shares

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<v Speaker 3>of Robinhood taking tumble today. The company announcing earnings yesterday

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<v Speaker 3>after the close. Shares felt today by eight point eight

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<v Speaker 3>percent lower fourth quarter profit due to sharp declines in

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<v Speaker 3>bitcoin and other cryptocurrencies. But vlad Tenev he said that

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<v Speaker 3>the companies at the beginning of a prediction market super

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<v Speaker 3>psychicly aims to expand into several new markets later this year.

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<v Speaker 3>I know you guys spoke with him a little about

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<v Speaker 3>an hour ago. What did he tell you didn't? Yeah,

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<v Speaker 3>what did he say?

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<v Speaker 5>Talk a lot about prediction markets and that super cycle.

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<v Speaker 5>We talked a bit about, you know, what kind of

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<v Speaker 5>returns their customers are actually seeing when it comes to

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<v Speaker 5>prediction monekets.

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<v Speaker 3>Did you say returns in prediction markets?

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<v Speaker 5>I did see you're talking.

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<v Speaker 3>About returns like we're talking about returns on a stock, right,

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<v Speaker 3>or when is that how we should be looking at

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<v Speaker 3>prediction markets.

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<v Speaker 5>Well, I'm not making that case, but I am talking about,

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<v Speaker 5>you know, whether or not people are seeing money when

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<v Speaker 5>they make bets on prediction markets or.

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<v Speaker 3>I heard the house always win.

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<v Speaker 5>A lot of market money. Well, you know that is

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<v Speaker 5>the sneaking suspicion out there, Tim, And certainly there's been

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<v Speaker 5>a lot of research, a lot of academic studies, and

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<v Speaker 5>also just a lot of concern about, you know, whether

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<v Speaker 5>people are getting their faces ripped off.

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<v Speaker 3>So yeah, I mean I think and Carol brought this

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<v Speaker 3>up a little early on our program. We were talking

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<v Speaker 3>about this the regulators out there, right, if you're a

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<v Speaker 3>sports gambling site or app, and you're regulated in a

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<v Speaker 3>different way than than one of these apps than like

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<v Speaker 3>a prediction market, it's up like, you know, we got

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<v Speaker 3>to potentially see some regulatory changes down the line, or

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<v Speaker 3>regulatory risk, I guess you could say. Finally, Shares of

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<v Speaker 3>Lift taking a hit today. The company fell after the

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<v Speaker 3>shares fell after the company issued a disappointing forecast at

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<v Speaker 3>miss Wall Street estimates down seventeen percent on the day.

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<v Speaker 2>Today the Stock Movers Report from Bloomberg Radio. Check back

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<v Speaker 2>with us throughout the day for the latest roundup of

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<v Speaker 2>companies making news on Wall Street and for the latest

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<v Speaker 2>market moving headlines. Listen to Bloomberg Radio Live, catch us

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