WEBVTT - CoreWeave Drops, SpaceX Falls, Lockheed Martin Jumps

0:00:02.529 --> 0:00:07.070
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio, news.

0:00:08.530 --> 0:00:12.410
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.470 --> 0:00:15.870
<v Speaker 2>in the stock market, harnessing the power of Bloomberg data.

0:00:16.710 --> 0:00:19.650
<v Speaker 3>I'm Tim Stenevek, along with Carol Master. Let's take a

0:00:19.650 --> 0:00:21.130
<v Speaker 3>look at some stocks on the move today. With us

0:00:21.190 --> 0:00:25.040
<v Speaker 3>is Bloomberg News equities reporter, Arvelis Bonilla-Ramos. Hey, Arvelis.

0:00:25.300 --> 0:00:26.640
<v Speaker 1>How are you? Good.

0:00:26.700 --> 0:00:29.240
<v Speaker 3>I mean, I'm glad you brought CoreWave.

0:00:29.750 --> 0:00:30.070
<v Speaker 1>Yes.

0:00:30.150 --> 0:00:33.379
<v Speaker 3>Because that is a fascinating story and a big mover.

0:00:33.420 --> 0:00:36.360
<v Speaker 1>Yeah, it was a big move. It closed down about 15% today,

0:00:36.380 --> 0:00:42.170
<v Speaker 1>that's Cigar's CRWV, in the lower worst day since February 2027. Sorry, 27,

0:00:42.170 --> 0:00:46.230
<v Speaker 1>not 2027. Basically, the company's bonds plunged to levels that

0:00:46.250 --> 0:00:50.589
<v Speaker 1>typically indicate that they're in distress. And the move caught

0:00:50.610 --> 0:00:54.540
<v Speaker 1>the attention of even Elon Musk, who draw... wrote yikes

0:00:54.720 --> 0:00:58.980
<v Speaker 1>on his social media on X. The AI Cloud Computing

0:00:59.020 --> 0:01:04.350
<v Speaker 1>Provider is traded below $ 0. 80 on the dollar on Wednesday,

0:01:05.190 --> 0:01:09.020
<v Speaker 1>according to Trace Pricing Data, and that widely is considered

0:01:09.100 --> 0:01:14.280
<v Speaker 1>a threshold for when a borrower is financially straight. Worth noting, though,

0:01:14.319 --> 0:01:17.660
<v Speaker 1>that the stock is up more than 60% since its

0:01:18.060 --> 0:01:22.040
<v Speaker 1>initial IPO. That will happen in March of 2025, and

0:01:22.100 --> 0:01:26.580
<v Speaker 1>its market value is more than $ 0. 30. $ 6. 5 billion. Okay.

0:01:26.780 --> 0:01:28.760
<v Speaker 3>Up how much since the IPO? 60%?

0:01:28.760 --> 0:01:29.560
<v Speaker 1>60%, yeah.

0:01:29.800 --> 0:01:33.550
<v Speaker 3>Okay. Down 64% from all-time highs, though.

0:01:33.810 --> 0:01:34.250
<v Speaker 2>That is true.

0:01:34.330 --> 0:01:38.610
<v Speaker 3>Yes. It was this stock last year that was unstoppable,

0:01:40.130 --> 0:01:43.760
<v Speaker 3>which was just wild to see, based in Livingston, New Jersey.

0:01:43.780 --> 0:01:45.020
<v Speaker 4>Canary in the coal mine? Yeah.

0:01:45.840 --> 0:01:46.560
<v Speaker 3>That's weird, right?

0:01:46.720 --> 0:01:47.200
<v Speaker 4>I don't know.

0:01:47.980 --> 0:01:48.980
<v Speaker 3>I think that's funny.

0:01:49.280 --> 0:01:51.940
<v Speaker 4>But I also think You also get the distinction or

0:01:51.980 --> 0:01:55.800
<v Speaker 4>separation between some of the major hyperscalers versus the neoclouds

0:01:55.860 --> 0:01:58.330
<v Speaker 4>and whether or not we're starting to see some of that.

0:01:58.370 --> 0:02:00.710
<v Speaker 4>Because how many times have we had guests on who say,

0:02:00.750 --> 0:02:03.180
<v Speaker 4>you know, if you're selling components.

0:02:03.780 --> 0:02:04.180
<v Speaker 1>to.

0:02:04.080 --> 0:02:08.540
<v Speaker 4>Someone, you're going to prioritize the hyperscalers and those big

0:02:08.600 --> 0:02:10.970
<v Speaker 4>tech names over some others. I'm not saying that CoreWave

0:02:11.070 --> 0:02:14.010
<v Speaker 4>isn't big, but I just do wonder. I don't know.

0:02:14.230 --> 0:02:18.290
<v Speaker 1>Let's see what it all means. Let's see your reaction

0:02:18.410 --> 0:02:20.610
<v Speaker 1>and call it irrational, quote unquote.

0:02:20.669 --> 0:02:20.769
<v Speaker 3>Yeah.

0:02:21.710 --> 0:02:23.650
<v Speaker 1>Trust the business model that the company has right now.

0:02:23.750 --> 0:02:24.970
<v Speaker 1>So it's something to watch.

0:02:25.090 --> 0:02:28.060
<v Speaker 3>This was originally a crypto mining company that then pivoted.

0:02:28.460 --> 0:02:28.739
<v Speaker 1>How many?

0:02:28.810 --> 0:02:30.820
<v Speaker 3>He started this like almost a decade ago.

0:02:30.980 --> 0:02:32.240
<v Speaker 4>How many of those crypto companies though?

0:02:32.500 --> 0:02:34.400
<v Speaker 3>It's all about computers. They say.

0:02:34.780 --> 0:02:34.960
<v Speaker 1>Yeah.

0:02:34.980 --> 0:02:35.380
<v Speaker 3>They say.

0:02:35.720 --> 0:02:36.400
<v Speaker 1>So let's take us.

0:02:36.580 --> 0:02:38.919
<v Speaker 4>So they say, let's take us, let's go to SpaceX

0:02:39.000 --> 0:02:39.880
<v Speaker 4>also down today.

0:02:40.020 --> 0:02:42.739
<v Speaker 1>Yeah. It was down to close down about 2.8%. That's

0:02:42.820 --> 0:02:45.639
<v Speaker 1>sticker SBCX. It's very interesting because you know, that whole

0:02:45.660 --> 0:02:50.160
<v Speaker 1>situation with president Zelensky today, uh, expressing his frustration that

0:02:50.260 --> 0:02:54.240
<v Speaker 1>the military use of satellite terminal was restricted. You know,

0:02:54.380 --> 0:02:57.019
<v Speaker 1>you had a Republican senator asking SpaceX to sort of

0:02:57.040 --> 0:03:00.100
<v Speaker 1>like clarify the company's position about the services in Ukraine.

0:03:00.500 --> 0:03:04.790
<v Speaker 1>And then around 3 p.m., Musk wrote an X again

0:03:04.830 --> 0:03:08.669
<v Speaker 1>on the platform, basically that any limits on the speed

0:03:08.730 --> 0:03:11.750
<v Speaker 1>of usage of those of Starshield are decided by the U.S.

0:03:11.790 --> 0:03:15.690
<v Speaker 1>military and the U.S. government. and added that is controlled by,

0:03:16.090 --> 0:03:20.480
<v Speaker 1>you know, that control is on or based on by

0:03:20.500 --> 0:03:23.260
<v Speaker 1>the U.S. government. He also said that Starlink, you know,

0:03:23.300 --> 0:03:26.320
<v Speaker 1>reiterated the tech commercial service and you should, that it's

0:03:26.440 --> 0:03:29.640
<v Speaker 1>limited to civilian or defensive activities. Can I just layer

0:03:29.700 --> 0:03:30.320
<v Speaker 1>on top of that?

0:03:30.419 --> 0:03:31.040
<v Speaker 2>Yeah, yeah, yeah.

0:03:31.300 --> 0:03:32.180
<v Speaker 4>After the close.

0:03:32.720 --> 0:03:35.410
<v Speaker 1>Is that a test? Okay. No, no, no, please.

0:03:35.510 --> 0:03:36.510
<v Speaker 3>This is a great story.

0:03:36.630 --> 0:03:37.170
<v Speaker 1>No, you go.

0:03:37.210 --> 0:03:37.670
<v Speaker 2>No, no, no.

0:03:37.710 --> 0:03:39.110
<v Speaker 1>This was actually, I was going to say, we were

0:03:39.150 --> 0:03:41.950
<v Speaker 1>talking about, you know, the AI cloud computing provider and Cardweb.

0:03:41.990 --> 0:03:44.550
<v Speaker 1>And then, yes, a couple of minutes ago, Barclays put

0:03:44.590 --> 0:03:47.400
<v Speaker 1>a note out, just basically putting out there what are

0:03:47.460 --> 0:03:50.820
<v Speaker 1>sort of like the merger and sort of like rationale

0:03:50.840 --> 0:03:52.740
<v Speaker 1>for the merger, if it were to happen, if it

0:03:52.780 --> 0:03:55.339
<v Speaker 1>were to be announced. And the expectation that the analyst

0:03:55.420 --> 0:03:57.320
<v Speaker 1>puts out there, it's like this could happen, you know,

0:03:57.760 --> 0:04:02.220
<v Speaker 1>before Tesla's annual meeting. It could happen before or after SpaceX.

0:04:02.380 --> 0:04:03.210
<v Speaker 1>Before December.

0:04:03.270 --> 0:04:03.830
<v Speaker 2>Equity lockups.

0:04:03.930 --> 0:04:04.170
<v Speaker 4>Yeah.

0:04:04.270 --> 0:04:05.130
<v Speaker 1>Before December.

0:04:05.150 --> 0:04:05.850
<v Speaker 3>Yes. Yeah.

0:04:06.010 --> 0:04:10.250
<v Speaker 4>So we could see a Tesla-SpaceX merger announcement possible before December.

0:04:10.450 --> 0:04:10.650
<v Speaker 2>Yeah.

0:04:10.690 --> 0:04:14.630
<v Speaker 1>But also he sees TheraFab as the key driver for

0:04:14.720 --> 0:04:17.839
<v Speaker 1>this merger, which is the, you know, the big semiconductor

0:04:17.880 --> 0:04:20.160
<v Speaker 1>manufacturing project that Elon Musk has. All right.

0:04:20.180 --> 0:04:23.140
<v Speaker 3>We saved 30 seconds for aerospace and defense. Lockheed Martin.

0:04:23.360 --> 0:04:26.660
<v Speaker 1>We just had Lockheed this morning, Vertical Research Partners, raise

0:04:26.680 --> 0:04:30.160
<v Speaker 1>the recommendation on the defense contractor, basically saying that while

0:04:30.180 --> 0:04:32.990
<v Speaker 1>there is uncertainty of the outlook that the defense budget

0:04:33.010 --> 0:04:36.010
<v Speaker 1>could see with the hang-up that exists with the midterms,

0:04:36.089 --> 0:04:43.390
<v Speaker 1>bipartisan support continues and remains with missile spending across U.S. defenses. Yeah.

0:04:43.430 --> 0:04:43.890
<v Speaker 2>Stock up 3.6%.

0:04:43.890 --> 0:04:44.130
<v Speaker 1>Okay.

0:04:44.150 --> 0:04:45.190
<v Speaker 4>There you go. Yeah.

0:04:48.570 --> 0:04:52.620
<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

0:04:52.700 --> 0:04:55.219
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:55.320 --> 0:04:59.260
<v Speaker 2>making news on Wall Street. And for the latest market-moving headlines,

0:04:59.560 --> 0:05:04.089
<v Speaker 2>listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com,

0:05:04.310 --> 0:05:07.270
<v Speaker 2>and on Apple CarPlay and Android Auto with the Bloomberg

0:05:07.310 --> 0:05:07.950
<v Speaker 2>Business app.