Coty Climbs, MGM Gains, Lockheed Martin Falls

On this edition of Stock Movers:

- Coty (COTY) climbed after Women’s Wear Daily reports that the beauty company is looking for buyers. Citi analyst Filippo Falorni writes: “we acknowledge the possibility of M&A, especially given COTY’s valuation, progress on debt deleverage over the last several years with the potential for value unlock from the sale of its Wella stake”

- MGM (MGM) Resorts shares gained, as well as shares in Entain, after BetMGM, the sports betting platform the two companies jointly own, raised its full-year guidance. 

- Lockheed Martin (LMT) shares fell on word that a deal between the US and China on rare earths wouldn't include Lockheed Martin's F-35 planes.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, Radio News, The.

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

Speaker 3 (00:18):
You want to take a look at some of the
stocks on the move today. Bloomberg News Earnings reporter Red
Brown Cody that was a mover today.

Speaker 4 (00:23):
Yes, it was up as much as thirteen percent today
on report that the company was in the early stages,
very early stages of exploring a sale. This report came
from Women's Wear Daily, citing multiple unnamed industry sources that
the company's actually looking to do two sales to break
up both of its units. And that's probably why the
shares are responding so much, is because they have this

(00:46):
one very fast growing luxury fragrance business that's been kind
of drugged down by their cosmetics, their kind of hot
their mass market cosmetics. So yeah, you know, that positive
reaction probably coming from the fact that you'll be able
to unlock a little bit more value by breaking these
two businesses up, especially considering kind of the trends within
the mass market business has been been difficult, a lot

(01:10):
of competition. A big market would be China as well,
and then we've kind of seen how the economy and
and sales consumer sales have been doing over there, So yeah,
I guess still kind of remains to be seen.

Speaker 3 (01:21):
Cody bought Khylie Cosmetics, right, which is one of the
Jenner's you know, Kylie Jenner? What come on?

Speaker 1 (01:27):
I don't know the answer to that, but I did
in twenty nineteen. What they bought it back then?

Speaker 3 (01:31):
Yeah, don't you remember they bought a fifty one percent
stake and it valued it at like one point two billion.

Speaker 4 (01:37):
I don't know.

Speaker 3 (01:37):
I just I don't know if they still own it.

Speaker 2 (01:39):
I saw that they were.

Speaker 4 (01:40):
I'm not sure either.

Speaker 1 (01:41):
There were vending machines at the airport for Kylie Cosmetics.
I know, it's like, who that's crazy? Cake machine for everything?

Speaker 4 (01:48):
Now?

Speaker 3 (01:48):
I know I bought a cupcake from a vending machine
and it was really good. Okay the times, Yeah, I'm like,
give me some sugar.

Speaker 1 (01:59):
Six sixty four I sent down from twenty twenty four.

Speaker 4 (02:02):
Huhs.

Speaker 1 (02:02):
The stock has been getting beat.

Speaker 3 (02:03):
Up, yeah, in a big way. Cot why is the ticker?

Speaker 4 (02:06):
That's right? I think that might have been what made
her a billionaire too.

Speaker 2 (02:09):
It's exactly.

Speaker 3 (02:10):
Yeah, it's exactly like it was a big deal when
that crossed. So you know your cosmetics companies.

Speaker 4 (02:14):
A little bit of Kardashian trivia.

Speaker 3 (02:16):
Yeah, that makes me so happy. All right, So let's
move on to MG and what do we got there?

Speaker 4 (02:20):
Yeah, another stock in the green today, shares up around
eight percent, top five, one of the top five best
performing stocks in the S and P five hundred today.
They kind of now flat erase the losses for the year.
The reason they jumped is actually has to do with
not their casinos has a lot to do with their
sports book in partnership with a British end tane. They

(02:43):
raise their outlook for that this year, and I kind
of think it makes sense. Just I mean, you probably
this one passes the eye test. Just it feels like
sports betting and sports in general everywhere. I don't know
if it's just because we're in New York, but yeah,
they raise their expectations by around one hundred million dollars
to two point six billion for the year. So yeah,
real sport's better. I'm not, I'm really bad at it.

Speaker 3 (03:02):
Wait, that means you've done it, Like I'll do.

Speaker 4 (03:06):
Like one a year. I'll do one bet a year
on like a big soccer game or something.

Speaker 1 (03:10):
Aren't the vast majority of people aren't the vast majority
of people bad at this because it's not a skill.

Speaker 3 (03:16):
It's like gambling.

Speaker 2 (03:17):
You know.

Speaker 3 (03:18):
The reason they're businesses is because people.

Speaker 1 (03:20):
Exactly, I've heard the house. I heard the house always wins.

Speaker 3 (03:23):
Right.

Speaker 1 (03:24):
Well, you go to Vegas and this stuff is not
built because you know, the people who use the services
are the ones making the money.

Speaker 3 (03:29):
Exactly.

Speaker 4 (03:29):
Well, it's actually interesting they've been struggling this year a
little bit just because people have been winning. So maybe
because they're so yeah, well, I think it's not they're winning.
It's just a lot of the favorites have been winning.
So if you think like the March Madness tournament, it
was like all number one seeds made it to the
final four. So it's like you really don't have to
be too much of a of a savanta. I guess,
get that right.

Speaker 3 (03:46):
That's a good point. That's interesting, like when the numbers
maybe go against the house.

Speaker 4 (03:50):
Right, So he's been a little bit at this year.

Speaker 1 (03:52):
Okay, I'm not okay from there's no easy segue gambling.

Speaker 4 (03:57):
No, it's like what there's.

Speaker 1 (03:59):
No easy segue way from going to sports betting or
gaming gaming. To the defense industry, this is tough Lockheed
though on your radar.

Speaker 4 (04:08):
Yeah, lockeed along with Northrop, but Lockeed tickers MT along
with Northrop Grumman, and el Free Technology Alfree harriscuse me Technologies.
They make up the top three stocks that gave up
the most ground today. And this is after last week
when the shares of this group were up again kind
of on the just the kind of the increased escalation
that everyone's been watching in the Middle East. It's it's

(04:30):
kind of interesting. A sales side kind of called this
one right when they said, you know, there is something
they're gonna be this fluctuation, but it's it's gonna be
you know, it's just gonna be temporary. This isn't going
to be a long term trend in the shares.

Speaker 2 (04:44):
The Stock Movers podcast from Bloomberg Radio. Check back with
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with the Bloomberg Business Apple

Speaker 1 (05:08):
Mm hmm,