Constellation Brands Falls, Coinbase Rallies, Rocket Lab Soars

On this episode of Stock Movers:

- Alcoholic beverage stocks are tumbling on Monday after President Donald Trump declared a 30% tariff rate for Mexico and the European Union, key markets for drinksmakers. Constellation Brands (STZ), maker of Modelo and Corona, drops as much as 5.1%, the most intraday since early February. Citi analyst Filippo Falorni notes 100% of STZ’s beer portfolio is brewed in Mexico, while Jack Daniel’s maker BF/B exports its American whiskey products overseas, which could be at risk from retaliatory tariffs from the EU.

- Coinbase (COIN) rallied after Bitcoin reached an all-time high of 120,000. The Crypto exchange joined the S&P 500 a few months ago. The stock is benefitting from the US House of Representatives' "Crypto Week," with the prospect of a clear US regulatory framework bolstering confidence in the asset class among institutional investors.

- Rocket Lab (RKLB) reached a record high after Citi raised its price target on the stock. The increased price target comes as Citi shifts its valuation methodology to the company’s revenue potential in 2029 from 2027. Rocket Lab recently awarded a contract to Bollinger Shipyards to support the buildout of the ocean landing platform for its Neutron reusable rocket. Movement has also been seen in the stock over the past few weeks as Trump threatened to pull SpaceX contracts.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:08):
The Stock Movers podcast, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 1 (00:17):
I'm Jim Statovic along with Norma Linda. Let's take a
look at some stocks on the move today with us
is Bloomberg News cross ass at reporter Emily Graffeo. It's Monday, Emily,
but you're thinking about the weekend drinks in the weekend.
I don't know what's going on here.

Speaker 3 (00:31):
I mean, I guess you.

Speaker 1 (00:33):
Know it's it's not too early for a drink.

Speaker 3 (00:35):
Yeah, Yeah, people can have beer and wine during the
week Okay, maybe not gen Z as much. Yeah, because
gen Z is very focused on wellness, and maybe that's
what's reflected in Constellation Brands stock the tickers st Z.
It's down about four percent today. The Again, maybe it

(00:55):
could be related to that declining demand from gen Z.
But we also got news on the Trump tariffs. So
President Trump declared a thirty percent terif frate for Mexico
and the EU. There wasn't anything specific about alcohol, but
these are key markets for drinks makers. So not only
Constellation Brands is down, but We're also seeing Brown Foreman

(01:19):
Boston Beer, Mulsim cores down, Constellation makes Modello and Corona,
and City noted that one hundred percent of their beer
profile is brewed in Mexico. Of course, it's all hinges on.
Is that the teriff rate that will actually stick?

Speaker 4 (01:35):
Yeah, And I'm looking at shares year to date down
twenty five percent for this company. So it seems as
though people are a little bit here on the stock here, right.

Speaker 3 (01:46):
And you hear a lot about like drinks makers and
beverage companies trying to pivot away from alcohol, and I
feel like every other day someone is introducing a non
alcoholic option. I think it's a general cultural shift away
from drinking a lot that's weighing on these companies as well.

Speaker 4 (02:03):
Yeah, low hallary options, like people like an alternative these days.

Speaker 1 (02:07):
Hey, speaking of a cultural shift, it seems to be
that we're seeing a cultural shift when it comes to
Wall Street and it comes to crypto with Bitcoin reaching
a new all time Hi, I know you're watching a
crypto company.

Speaker 3 (02:16):
Yeah, this is a big milestone, Bitcoin topping one hundred
and twenty k. I felt like just a year ago
we were talking about how it was at like sixty k.
But I'm looking at coinbased specifically because this is kind
of a company that embodies that idea of digital asset
DeFi becoming more mainstream. Coinbase, of course, is a crypto exchange.

(02:40):
They're in the US, They joined the S and P
five hundred a couple months ago, and so that stock
is higher today. We tend to see whenever there's like
Bitcoin reaching a new high, Coinbase does well. And then
also just watching the space for this week because the
White House is calling this Crypto Week. There's going to
be some bills that Congress is voting on this week

(03:02):
that would clarify the structure of the crypto sector and
regulations around it. So all around, it's like a very
bullish day for crypto and Coinbase, the ticker there is
coin all fitting. You're also looking at rocket Lab, right Yes,
so rocket Lab ticker rk LB is at a record
high right now, it's up about seven percent. City raised

(03:26):
their price target on this stock. They said that the
price target comes as they shift their valuation methodology to
the company's revenue potential, which if that sounds a bit boring,
there's also some actually space related news in here. This
is a rocket satellite company. They said they expect revenue
to grow roughly two point six billion, driven by twenty

(03:48):
neutron launches per year. Further satellite construction wins, particularly for
US government programs. So I don't know. I always think
space is interesting and certainly investors like to bet on it.

Speaker 2 (04:00):
This is interesting.

Speaker 1 (04:00):
It's a twenty one twenty two billion dollar market cap
as of now. It's tiny compared to in terms of launches,
in terms of capabilities versus SpaceX, but Emily, it's always
interesting to see what this company does. Yeah, in the
wake of any tension that we see between President Trump
and Elon Musk, and we've seen it move quite a
bit over the last six weeks or so as the

(04:22):
President is threatened to pull SpaceX contracts. To what extent
rocket Lab could actually fulfill what SpaceX does that it
can't do that at this point. There aren't that many competitors.
They aren't really you know, that can actually do that.

Speaker 2 (04:34):
But it's up six.

Speaker 4 (04:37):
It's insane, it's insane looking at all these aerospace are
these space docks here, I'm looking at an ETF. It's
ticker UFO Procure Space ETF of about thirty percent this year.
But if you really dig into some of the names,
there lots of activity to watch.

Speaker 3 (04:52):
Imagine if SpaceX was a public company, how much imagine
higher that that ETF would be. There are certainly some
ETFs that holds you know, A but it's obviously private.

Speaker 2 (05:02):
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