WEBVTT - DraftKings, Expedia Sink; Applied Materials Surges

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>I'm Carol Messer along with Tim Stanevik. Let's get to

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<v Speaker 3>you some stocks on the move. Bloomberg News Crosshouse at

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<v Speaker 3>reporter Emily Graffeo is in the house. DraftKings, place your bets,

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<v Speaker 3>place your best.

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<v Speaker 4>Well, yeah, so this stock dk NG, it's down about

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<v Speaker 4>fourteen percent right now, thirteen point five and the revenue

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<v Speaker 4>forecast for twenty twenty six miss they see six point

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<v Speaker 4>five billion to six point nine billion. But I feel

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<v Speaker 4>like talk of this stock is reminding a lot of

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<v Speaker 4>people on Wall Street just how much competition DraftKings, a

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<v Speaker 4>sports betting company has from prediction markets.

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<v Speaker 1>Right.

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<v Speaker 4>So, and I think it was Matt Levine who pointed

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<v Speaker 4>out a few weeks ago in a column that just

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<v Speaker 4>the consumer that wants to get involved in making bets.

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<v Speaker 4>I think you pointed out that you can be eighteen

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<v Speaker 4>on polymarket and Calshi and trade stocks, you can make bets,

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<v Speaker 4>and you can't with DraftKings. So there's a whole kind

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<v Speaker 4>of scope of regulatory issues that might make DraftKings more

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<v Speaker 4>vulnerable to competition. They said, though they're not seeing a

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<v Speaker 4>discernible impact from predictions prediction markets on the revenue, and

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<v Speaker 4>they see prediction markets as a massive opportunity for the company.

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<v Speaker 4>I'm not sure how I.

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<v Speaker 3>Wait, wait, but prediction markets aren't opportunity.

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<v Speaker 1>There are opportunity, and they're not seeing an effect. Yeah,

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<v Speaker 1>I don't understand that.

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<v Speaker 4>So DraftKings and also flutters FanDuel have launched their own

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<v Speaker 4>versions of prediction markets products. But again, what we've seen

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<v Speaker 4>is that the stocks of a lot of these online

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<v Speaker 4>betting companies.

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<v Speaker 1>If you can bet on the Super Bowl using robin

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<v Speaker 1>Hood's prediction markets, then why would you use DraftKings or FanDuel.

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<v Speaker 4>Yeah, I'm not sure. Again, they're saying it's a massive opportunity.

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<v Speaker 3>We'll have to I mean, at some point regulators have

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<v Speaker 3>to say this is gambling, right, right, and so we

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<v Speaker 3>need to regulate this.

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<v Speaker 4>Yeah, right now, these prediction markets are arguably working in

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<v Speaker 4>somewhat of a regulatory gray area, and they're just taking

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<v Speaker 4>advantage of it while they can. So yeah, yeah, all.

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<v Speaker 3>Right, let's go to travel.

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<v Speaker 1>Let's travel somewhere.

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<v Speaker 4>You guys are in a very like Friday.

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<v Speaker 1>You know this, it's a three day weekend, right? Oh?

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<v Speaker 4>Yes, right, so maybe that's just Friday, it's a it's

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<v Speaker 4>a holiday weekend. Yeah, Okay, are if you're traveling, are

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<v Speaker 4>you using Expedia or are you just asking sometimes munication?

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<v Speaker 1>Yeah, sometimes you don't even know if you're using an

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<v Speaker 1>Expedia brand.

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<v Speaker 3>Wasn't there someone in the newsroom who just talked about h.

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<v Speaker 1>Paul Sweeney came by and he was like, these uh

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<v Speaker 1>ll ms are amazing when it comes to travel, travel,

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<v Speaker 1>but did it get it right? Like did it meet

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<v Speaker 1>an itinerary where that you actually want to do?

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<v Speaker 4>I mean, the street has definitely caught on to that

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<v Speaker 4>idea that travel agencies and honestly, this is part of

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<v Speaker 4>that broader idea that any software company we're at large

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<v Speaker 4>is really at risk. Here for AI.

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<v Speaker 3>Toscrict AI scare right.

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<v Speaker 4>Expedia take her xp x e XPE down five percent

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<v Speaker 4>right now, is down as much as ten percent, around

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<v Speaker 4>the lowest levels since November right now. And this was

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<v Speaker 4>despite the fact that they had pretty strong earnings very recently.

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<v Speaker 4>Fourth quarter revenue grow was the fastest in three years.

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<v Speaker 4>Sales and gross bookings also meet estimates, but if you

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<v Speaker 4>look at what Wall Street said Canter Fitzgerald, they have

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<v Speaker 4>a neutral rating on the stock. They said, until we

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<v Speaker 4>gain confidence on Expedia's AI strategy, we're keeping this neutral rating.

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<v Speaker 4>And BI kind of noted the same thing as well.

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<v Speaker 4>AI is a long term risk for the broader online

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<v Speaker 4>travel industry.

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<v Speaker 3>Yeah, there's this, there's somewhere this AI scare. You know,

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<v Speaker 3>I'm not going to take a perspective, but you think

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<v Speaker 3>about it and you can understand how things are going

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<v Speaker 3>to change and evolve and whether.

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<v Speaker 4>Or not.

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<v Speaker 1>Market every day for the past two weeks.

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<v Speaker 4>Absolutely right, And yeah, it's like a whammy for Expedia

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<v Speaker 4>because it's like travel agencies, but it's also just yes,

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<v Speaker 4>software companies more broadly are the trade has been very

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<v Speaker 4>risk off for software right now.

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<v Speaker 1>Okay, two decliners. Now let's go to something in the green.

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<v Speaker 4>Yes, we'll end on a high note. I'm looking at

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<v Speaker 4>sure As Applied Materials AMAT is the ticker. It's up

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<v Speaker 4>a nine percent right now, actually a record high, and

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<v Speaker 4>this is also speaks to an AI trend. They're the

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<v Speaker 4>largest US supplier of chip making gear and they had

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<v Speaker 4>pretty good earnings overall yesterday after the closed net sales

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<v Speaker 4>beat adjusted EPs beat, and yeah, they expect revenue of

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<v Speaker 4>approximately seven point sixty five billion in the second quarter.

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<v Speaker 4>The global and also domestic build out of data centers

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<v Speaker 4>is something that they will benefit from because again they're

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<v Speaker 4>they're a supplier, so.

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<v Speaker 3>Forty this year and that's after a nearly sixty percent

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<v Speaker 3>game last year.

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<v Speaker 4>Yeah. Yeah, we saw a number of analysts hiking price

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<v Speaker 4>TRD and highlighting the magnitude of the forecast beat that

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<v Speaker 4>this company had.

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