Crowdstrikes registered probe, tapissery upgrade: Trending Tickers

00:00 Speaker A

Now time for some of today's trend kickers. We look at crowdstrike and tapestry. And now to me, we have the co-moderator of Market Domination, Julie Hyman, here on the set with us. First of all, we were able to examine via US prosecutors and supervisory authorities, which were examined using a 32 million dollar contract with IT solving provider Carahsoft Technology Group. In addition, two more crowdstrike transactions are examined according to Bloomberg. Crowdstrike shares this, Julie, around 4.2%.

00:32 Julie Hyman

Yes, they were actually from earlier. Um, this is a bit complicated because Bloomberg reports it, quoted people who are familiar with the situation. And it seems to have to do with the practice of the outbook, where you book the county in the dotted line, so to speak, so to speak under the column of the bookings. In principle, the Ministry of Justice and the SEC examines this deal for 32 million dollars according to Bloomberg to supply the cyber security software to the IRS. So it was crowdstrike about Carahsoft here. And the IRS apparently never bought or actually received the products. Both Carahsoft and Crowdstrike said that they are standing for transaction. In fact, in an explanation we are a spokesman for crowdstrike who says Bloomberg in an explanation, as we have already mentioned, we are standing in the accounting of this transaction. Part of it seems to have to do with accounting standards and how these things are booked here. Um, by the way, this was in 2023 that this deal happened. So this is a kind of review and tries to find out how these offers are taken into account.

02:07 Speaker A

Especially when many companies and a similar type of ERP or some of the larger capacities for resource planning software generally speak as pipeline opportunities that they see, or active business instead of putting it in the books. That is a little interesting. We will see how this will develop for us.

02:34 Julie Hyman

Yes, as I said, a little complicated.

02:38 Speaker A

Yes. We also pursue something less complicated for some of the weekend buyers out there. Tapisserie, you have an upgrade to Morgan Stanley of the same weight overweight, and the company says that some concerns that you had previously improved improved. They believe that the result will be better than expected, and they believe that the company takes over the uncertainty of tariff insurance. Well, shares of Tapestry tapiserie here today by about 7/10 percent.

03:12 Julie Hyman

Well, they got a boost at the beginning of the week, because only to step back, Tapestry reported their numbers this week. It is the owner of Kate Spade. It is the owner of Stuart Weitzman who sells, and it is the owner of, um, coach is the other who has it here. So the company reported at the beginning of the week that they increased their prospects. They said they are not so tariffs. You don't get as many of your products from China, and it seems that the demand is going to hold quite well. So that seems to be the impetus that this upgrade was overweight here. And basically Morgan Stanley underestimates, the street, um, which this company can sometimes earn because the company has improved the gross margins in some of its different brands. They actually say that when the sale of Stuart Weitzman takes place, the margins will improve, as this is a lower margin business than the other two brands here. And they also like this tariff resistant, about which the company spoke about its low China procurement. It has a high international mix of sales. You know even if it is affected by tariffs, it sells many things abroad. So the stuff is not jagged in the same way. So somehow interesting and counterintuitive, right? What a high-end retailer would think about it. And the stocks have actually increased by 20%this year.

04:57 Speaker A

It was interesting what they put in the notes and said that there was a long street on Kate Spade, and we are still skeptical about multi-brand portfolios, which was the whole reason that they were renamed as a wall carpet, brought all of these brands to folds and say what is this new name? And then they came with tapestries. We were okay, well, I think we will rock with it for the time being. And now to see some of the strategic steps that you take, relax at least parts of this business to see where there is a potential offer and possibly something capital that can be infused into the company.

05:42 Julie Hyman

Yes, it is interesting.

05:44 Speaker A

Yes.

05:45 Julie Hyman

I mean, hey, it's tapestry. Could be worse. Could be diverse.

06:01 Speaker A

Sorry, I'm sorry for the shadow, many, but

06:05 Julie Hyman

At least it's a real tapestry, a real word I say. I like you know, you can understand what tapiss series means and what it requires.

06:15 Speaker A

We can imagine it. We can see it.

06:18 Julie Hyman

Yes.