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The Stock Movers report, your roundup of companies making moves in the stock market. Harnessing the power of Bloomberg Data.
Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's Valerie Tytel on the stock to watch this morning. Valerie certainly is the Walt Disney Company. After earnings of very interesting reaction to what the House of Mouse reported good morning.
We had Disney on a back foot, down three point one percent after these earnings in the pre market. The sales fell short of estimates, and they posted roughly flat revenue and a declient in operating income during the previous quarter. But another major worry for the path forward for Disney is expenses. The entertainment company set a slate of big budget films will weigh on expenses and results in the
next quarter. They cited expenses tied to the release of Zootopia two and another Avatar movie will reduce earnings by four hundred million. They also claimed that their theme park and cruise unit will have an additional one hundred and fifty million in expenses in the first quarter, tied to new ships in dock work. Still, Disney is predicting that the fiscal year twenty twenty six earnings will grow by
double digit percentage. However, those gains are going to be weighted toward the later half of the year once these expenses are worked through, So Disney shares on a back foot after these worries over expenses, down round three percent in the pre market.
Well, we're seeing a much more positive reaction to the results we got from Cisco Systems after the close yesterday, Bowery.
Cisco is higher by nearly seven percent in the pre market. The network equipment maker had boosted its twenty twenty six forecast Nathan on the back of progress in capturing more of the AI spending. This has really been a make or break topic for tech companies this year on whether these businesses are in the right place to capture the AI boom. Cisco convey vans investors it was it needs to rally another two percent today, actually, Nathan to breach its dot com high of eighty two dollars a share.
We're trading at seventy nine at the moment, so watch out for that.
Speaking of AI valerie, quite the headline coming down on that story from Ali Baba.
Yeah, we're seeing the shares of Ali Baba head hire in the pre market up four point two percent. The Chinese e commerce giant is preparing to overhaul its main mobile AI app to more resemble open AI's Chat GPT. The revamp is also going to mark Ali Baba's biggest move so far to try to ring revenue from more consumer facing services in the app, like adding agentic AI features, which is essentially having the AI do your shopping for
you in a way to monetize the technology. They do want to turn it into a more fully functioning AI agent, and they do plan to eventually expand globally with an overseas version. So Alibaba ADR is headed higher after this announcement about their revamp of four point two percent.
So after another sign of positivity around the artificial intelligence story, we're getting a flip side on the other side of maybe the K shaped market from Dollar Tree exactly.
Dollar Tree is suffering a double downgrade from Goldman Sachs. The shares are lower this morning to the tune of three percent. They did cite concerns about the lower end consumer weighing on Dollar Trees earnings in the coming quarters. Perhaps that is more evidence again that Wall Street is really penciling in a weaker lower end consumer versus a bustling top end consumer. Golden Sacks was also citing declining consumer perception around Dollar Tree's price and value of their goods.
The Stock Mover's report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app. Mm hmm