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I'm Carol Messer along with Alexis Christophers in for Tim on this Thursday. Let's take look at some stocks in the move today, and with us is Bloomberg News Equities reporter at Alexandra Semenova alex Retailers. They've been front and center for the last couple of weeks reporting earnings. Dollar General at today, and.
We're learning something about the macro picture with this stock, that consumers are hunting for bargain, so perhaps they're not doing as well as we're hearing at the headline level. Dollar General raised its full year outlook, a showing that value focused retailers are doing very well as people are looking for cheaper items. Their stock is rallying about twelve percent right now, so good for the company, but a sign that perhaps people are struggling with still very high costs.
I think it's interest to you when you're looking for value and good deals at Dollar General, exactly.
Dollar Tree yesterday came out with very good earnings and raised guidance and aren't they seeing higher income earners?
They are?
Yeah, And there another company that is kind of telling us something is Walmart. There was a really good point made today by Jim Paulson, veteran strategists. He said that when Walmart outperforms global luxury retailers, that's a sign that typically US consumption is not doing very well, and typically it proceeds slower GDP growth. So perhaps some of these low income focused names are a sign that maybe the economy is in.
A little bit of Trump Tea leaves there.
Exactly, all right, So Dollar General DG down twelve percent. I'm just taking a look at Walmart.
It's flat today.
But yeah, it's interesting to see that. In terms of the narrative, I want to go media.
I mean, this bidding war for Warner Brothers Discovery is getting confusing, it's getting ugly. Paramount sky Dance now has something to say. They're accusing them right of not playing fair.
Yeah, alex is getting ugly, is right, it's really contentious now. Paramount, one of the buyers buying for Warner Brothers, accused it of failing to conduct a fair auction. They sent a letter to CEO David Zaslov, saying that the company is not acting in shareholders best interests. Look at the stock today, it's down about one percent. In a response, Warner Brothers said it had shared the Paramount letter with its board. As we know, it has been officially put on sale
in October after receiving an offer from p Paramount. It also has interest from Netflix, it has interest from comcasts. So it's been really heated and people are.
And some are saying the Netflix is now the front runner and mostly cash, but we don't know for how much it apparently it is for the Paramount.
See. Yeah, but apparently Paramount clearly disappointed here. They feel like they're not getting a.
Fair when you brought up to you, like on our morning call, like do we know what the prices are? We don't know completely.
There second numbers out, I mean, sixty billion was like the last thing I saw publicly, So it's going to be you would think worth of sixty billion exactly.
It's changing every day. And also point out that Paramount is the only one of them that is actually trying to take over the entire company, so it wants to buy it's CNN exactly.
Yeah, let's remind everybody Warner Brothers Discovery right now is a sixty billion dollar market cap company.
So they're looking for a little premium. Give them some premium paramount. Also raised the breakup fee to five billion dollars from a billion, so they're basically saying, look, we think we're going to get regulatory approval if you guys choose us.
Yeah, lots of big numbers.
Yeah, all right, MENA certainly a company we've been talking about a lot today and it's higher.
This one is interesting because, as we know, Facebook rebranded to be meta platforms, and here they are saying that they're going to cut resources for building out the so called metaverse that hasn't served them well. Where Zuckerberg seems to want to scale back on this business endeavor. He once framed this as the future of the company. It was all about the metaverse, and then we kind of
stopped hearing about it in the last few years. Executives are a parent only a considering potential budget cuts of as high as thirty percent for this part of the business, and they could see layoffs as soon as January. Apparently, these discussions were had in a closed meeting at Mark Zuckerberg's compound in Hawaii as they were deciding budget plans.
You're going to have a meeting, why not do it there?
I mean sign me up investors feels a little Yeah, investors clearly like the news. Do The stock is up three point five percent right now.
Got to say an incredible scoop and exclusive by our own Kurt Wagner.
It's incredibly good story. But it's something we talked.
About too that you know, investors in analysts have kind of wanted this.
So it's the companies say, maybe really generating much for them, So.
It's anything they thought it was a drag on resources. But I guess in a coup for Meta yesterday they stole away an Apple design exec. Right.
Yeah, that's another interesting to see some of the hiring going on between these Mac seven companies just poaching talent.
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.