Bloomberg Intelligence Podcast Summary

Episode: BI Weekend: Nike, Carnival Earnings, EA Sale
Date: October 3, 2025
Hosts: Scarlet Fu & Paul Sweeney

Episode Overview

In this packed episode, Scarlet Fu and Paul Sweeney leverage Bloomberg Intelligence insights to examine high-impact market stories and company results from the past week. The team delivers in-depth analysis on Nike’s ongoing turnaround, Electronic Arts’ record-setting sale, key developments in cloud AI infrastructure, updates from ExxonMobil’s cost-efficient restructuring, a bullish report on nuclear energy, and Carnival’s measured cruise industry rebound.

1. Nike’s Turnaround: Progress Amid Headwinds

Guest: Poonam Goyal – Senior US E-Commerce and Retail Analyst
Segment Start: [02:31]

Key Points & Insights

• Turnaround Plan is Working:
  Nike’s product innovation, enhanced marketing, and inventory realignment are yielding progress. Though not out of the woods, momentum is building.

  “It's working. Nike is able to pick up momentum. Sales on a reported basis were up 1%. Inventories were down 2%. This is exactly what we wanted to see.” (Poonam Goyal, [02:55])

• Revenue Breakdown:

  • Direct-to-consumer (DTC) revenue fell 4% (mainly due to a 12% drop in digital sales as excess inventory is cleared); store sales were up 1%.
  • Wholesale revenue surged 7%—boosted by renewed focus on retail partners like Foot Locker and Amazon.

• China & Converse Challenges:
  China market remains sluggish, with higher excess inventory than the US. Converse is also a “work in progress.”

  “China is still sluggish and we'll need to wait and see what happens there as well as with its Converse brand.” (Poonam Goyal, [03:18])

• Profitability & Tariffs:

  • Margins impacted by higher discounts and $1.5B in tariff costs (up from $1B previously).
  • EBIT margins for the quarter were 7.1%, well below the double-digit target.

  “The hit from tariffs is building, not reducing... that went to $1.5 billion in excess costs from tariffs.” (Poonam Goyal, [05:26])

• Pricing Strategy:
  Nike is holding prices steady on products under $100, but raising prices on higher-end/new release sneakers, leveraging less price sensitivity at that level.

• Competitor Landscape:

  • Skechers serves a different, more value-driven segment.
  • Adidas strong in lifestyle; ON and Hoka excel in running, “took share from Nike.”
  • Innovation will determine future sales momentum.

2. Spotify’s CEO Transition and Growth Path

Guest: Geetha Ranganathan – BI US Media Analyst
Segment Start: [07:59]

Key Points & Insights

• Daniel Ek Steps Down:

  • Daniel Ek, founder and CEO, is transitioning Spotify to a co-CEO structure, similar to Netflix.
  • Company is strong, “left... in a good position for its next phase of growth.” ([08:08])

• Growth Drivers:

  • Price hikes are ongoing and will continue—“it's alarming how frequently the price changes come.” (Scarlet Fu, [09:07])
  • Still room for increases: Spotify’s $12/month US rate is below Netflix’s $18.

  “Spotify... have a 35% global market share in terms of subscribers.” (Geetha Ranganathan, [09:28])

• Cost Pressures:

  • 70% of revenue goes to music royalties; pushing for more owned content (podcasts, audiobooks, video podcasts) to expand margins.

  “They're really trying to go away from, you know, licensed content to more owned content.” (Geetha Ranganathan, [10:49])

• AI as an Opportunity:

  • AI being incorporated into playlist curation, music discovery, and premium features (e.g., “AI DJ type of feature” for new tiers).

• Competition:

  • Apple holds about 10% market share, well behind Spotify’s 35%.

3. Electronic Arts’ Record Buyout

Guest: Nathan Naidu – BI Technology Research Analyst
Segment Start: [13:46]

Key Points & Insights

• Deal Details:

  • EA sells to investors including Jared Kushner and Saudi Arabia’s Public Investment Fund.
  • Valued at $55B, $210/share—largest leveraged buyout to date.

• Premium is Justified:

  • 20-30% above market cap; strong game pipeline includes a new Battlefield—already “smashed all prior records”—and the upcoming FIFA World Cup cycle.

  “Better Fuse 6 is looking to be a successful launch.” (Nathan Naidu, [14:16])

• Why Private Ownership?

  • Allows for steadier long-term investment amidst high dev costs and “gamer fatigue.”
  • Recurring revenue from established franchises (FIFA/FC, Madden, Sims) is a compelling draw for private equity—“profit generation is key.”
  • US publishers face cost disadvantages compared to Asian rivals (e.g., Chinese developer salaries less than half of California's).

  “80% of playtime tend to go back to the 60 or so titles, leaving only 8% of playtime for brand new IP.” (Nathan Naidu, [16:02])

4. ExxonMobil & Big Oil: Managing Costs in a Clouded Market

Guest: Vincent Piazza – BI Senior Equity Research Analyst, Oil & Gas
Segment Start: [18:05]

Key Points & Insights

• Layoff Announcement:

  • ExxonMobil cutting 2,000 jobs globally (3–4% workforce) as part of a long-term efficiency drive—mirrored by other majors (BP, Chevron, ConocoPhillips).

  “When you’re not growing revenue... you have to manage that netback from the cost perspective.” (Vincent Piazza, [19:07])

• Cost Management Focus:

  • Since 2019, Exxon trimmed $13.5B in annual costs—more than all other big oil companies combined.
  • Technological advancements help increase efficiency; Pioneer acquisition will impact workforce size.

• Energy Outlook:

  • Volatile, with sluggish oil/WTI prices and “structural growth trajectory for natural gas” (esp. via LNG exports, AI powering demand).
  • Demand outlook for liquid fuels is more “clouded” than for natural gas.

5. Nuclear Power’s AI-Driven Build Cycle

Guest: Scott Levine – BI Senior Energy Services Analyst
Segment Start: [22:35]

Key Points & Insights

• Nuclear Favored for AI Data Centers:

  • Emissions-free and offers reliable baseload power, making it attractive for big tech firms (Microsoft, Meta) with 24/7 demand.

  “Nuclear checks both of those boxes and those are two very big positives.” (Scott Levine, [23:02])

• Investment Outlook:

  • Nuclear at 18% of US grid, expected to rise to 20% by 2050—requires $350B investment (adding ~60 GW capacity).

• Small Modular Reactors (SMRs):

  • None operational in the US yet, but offer flexibility, smaller scale, diversified tech (light water, gas, molten salt). Expect “technology shakeout” over next five years.

6. CoreWeave and the Rise of AI Cloud Leasing

Guest: Anurag Rana – BI Tech Analyst
Segment Start: [26:56]

Key Points & Insights

• Major Meta Deal:

  • CoreWeave to supply $14.2B in computing power and latest Nvidia GB300AI chips to Meta.
  • Represents a shift to leasing capacity instead of building it entirely in-house.

  “They're just going and outsourcing the entire infrastructure for an amount of $14 billion... now leasing capacity rather than building it in house.” (Anurag Rana, [27:19])

• Industry Implications:

  • CoreWeave's model involves renting top-tier GPUs to cloud customers—demand for capacity is huge, making it easier to secure funding for expansion.

• Customer Base & IPO Prospects:

  • Microsoft (71% of revenue) and OpenAI are major customers, with others like Meta joining.
  • Highly concentrated, but “not a deal breaker.”

• Signs of a Cloud Gold Rush:

  • Financing markets are “open for this kind of trade,” with other major data center bond placements (Meta, Oracle).

7. Carnival’s Conservative Recovery in the Cruise Industry

Guest: Brian Egger – BI Senior Gaming & Lodging Analyst
Segment Start: [32:12]

Key Points & Insights

• Upbeat but Conservative:

  • Carnival raised earnings forecast on record forward bookings and improved net yields, yet the market reacted skeptically due to perceived conservatism in projections.

  “They're growing very effectively. But they are also very measured in how they deploy capacity.” (Brian Egger, [32:34])

• Capacity Strategy:

  • Carnival targeting 1–2% annual capacity growth versus 5% for Royal Caribbean/Norwegian; focused on becoming investment grade and disciplined capital allocation.

• Brand Loyalty & Segmentation:

  • Cruise sector offers a “relatively affordable” vacation across luxury and mass-market strata; brand loyalty exists but so does cross-brand competition.

• Returns:

  • “13% return on invested capital this year”—hitting double-digit benchmarks.

  “They fill it up, they get good pricing and relative to their investment, they're getting solid low teens returns on incremental invested capital.” (Brian Egger, [36:50])

Notable Quotes

• “Sales on a reported basis were up 1%. Inventories were down 2%. This is exactly what we wanted to see.”
  — Poonam Goyal on Nike’s progress ([02:55])
• “Spotify... have a 35% global market share in terms of subscribers.”
  — Geetha Ranganathan ([09:28])
• “Better Fuse 6 is looking to be a successful launch.”
  — Nathan Naidu on EA’s Battlefield series ([14:16])
• “Nuclear checks both of those boxes and those are two very big positives.”
  — Scott Levine ([23:02])
• “They're just going and outsourcing the entire infrastructure for an amount of $14 billion... now leasing capacity rather than building it in house.”
  — Anurag Rana, CoreWeave/Meta deal ([27:19])
• “They fill it up, they get good pricing and relative to their investment, they're getting solid low teens returns on incremental invested capital.”
  — Brian Egger on Carnival ([36:50])

Timestamps to Important Segments

• Nike turnaround analysis: [02:31]–[07:33]
• Spotify CEO transition & model: [07:59]–[13:12]
• EA sale breakdown: [13:46]–[18:01]
• ExxonMobil and energy layoffs: [18:05]–[22:30]
• Nuclear power outlook: [22:35]–[26:20]
• CoreWeave/Meta AI cloud deal: [26:56]–[32:09]
• Carnival's earnings & industry outlook: [32:12]–[38:09]

Tone & Style

The hosts maintain a brisk, informed, and accessible tone, blending hard data with market color and a touch of humor (and occasional personal asides) to keep discussions lively even when covering technical content.

For listeners seeking distilled insights and advanced analysis across multiple industries, this episode delivers a comprehensive view—from brand turnarounds and M&A to disruptive shifts in energy, cloud, and travel.