Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: The Stock Movers report your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I'm Carol Masser along with Tim Statvik. Let's get to
Speaker 1: some stocks on the move. Joining us right now is
Speaker 1: Bloomberg News Crossouse that reported Danizazikova here in studio. A
Speaker 1: lot to talk about, a lot to choose from, because
Speaker 1: docs are certainly on the move.
Speaker 3: Let's start with Cisco, which less than.
Speaker 1: Twenty four hours ago we were all over their earnings.
Speaker 4: For sure, a lot of stocks in the red, and
Speaker 4: definitely Cisco is one of the big down names today.
Speaker 4: It's actually nearly worse the day in four years. The
Speaker 4: company is down about twelve percent. The ticker, of course
Speaker 4: is CSCO. At the company gave weaker than expected forecast
Speaker 4: for profitability, and everyone is looking at those numbers in
Speaker 4: terms of profits, and clearly we're seeing a sign that
Speaker 4: memory chip prices are in a toll that said, there
Speaker 4: were pretty good numbers when it comes to ABEAT sales forecast.
Speaker 4: The number that perhaps is worrying investors is just a
Speaker 4: growth growth margin, which came roughly at sixty six percent,
Speaker 4: which was lower than what the street.
Speaker 3: So higher costs, you're just not as profitable.
Speaker 4: Exactly exactly, And obviously there is a lot of competition
Speaker 4: in that space.
Speaker 3: We have HP, we have Broadcom.
Speaker 4: There is also a memory chip shortage, so there are
Speaker 4: a lot of headwinds in that state space.
Speaker 3: The company was doing well here today before this.
Speaker 4: Now it's down here to date, but obviously today is
Speaker 4: the big drag. What we're seeing, of course is tightening margins,
Speaker 4: but also some delay in US government contracts, which is
Speaker 4: also wearing in the company for.
Speaker 5: Sure, you know on it. It'd be interesting to see
Speaker 5: what the stock would do on today when the entire
Speaker 5: tech sector is not lower.
Speaker 3: Yeah, you look at the NASA and a half percent.
Speaker 5: Apples down five percent, Cisco's the second biggest drag, but
Speaker 5: app Lovin is down twenty percent, and Tesla down three percent. Amazon,
Speaker 5: Meta Platforms, Broadcom all down more than two point five percent.
Speaker 4: It's hard to find stocks in the green, especially anything
Speaker 4: text software.
Speaker 3: It's really hard.
Speaker 1: I think it's also a nervous, jittery market when it
Speaker 1: comes to AI in terms of okay to spend the
Speaker 1: build out the ROI, right, we know folks are continuing
Speaker 1: to spend, but the return on investment and then who
Speaker 1: ultimately are the winners, but also the impact on so
Speaker 1: many different sectors. This AI scare trade continues moving through
Speaker 1: the market.
Speaker 3: It's really fascinating.
Speaker 4: Every day we see a newtube being released and a
Speaker 4: totally news sector of the market that we thought was
Speaker 4: kind of immune being hit. And that's what happening to
Speaker 4: logistics today. This is the AI scare trade of the day.
Speaker 4: If we look at the Russell three thousand trucking index,
Speaker 4: it's down more than three percent today and some of
Speaker 4: the names like cch Robinson Worldwide down twenty percent.
Speaker 3: It's really really big losses and.
Speaker 4: It's coming after Algorithm Holdings is giving a live customer
Speaker 4: deployment which is supposed to scale fried volumes by three
Speaker 4: hundred four hundred percent. So the whole thing is maybe
Speaker 4: we will need fewer trucks and fewer workers, which is
Speaker 4: going to weigh on trucking and more likely on logistics.
Speaker 5: I thought I thought the like things were safe, right, things.
Speaker 3: Were safe, all the economy was safe, right, So.
Speaker 1: Is AI supposed to make it more efficient, like so
Speaker 1: that truckloads don't go out until they're fully packed, and
Speaker 1: so maybe it don't make.
Speaker 4: Exactly it's more about efficiency, not getting more trucks that
Speaker 4: you need and kind of fearing perfectly little jig sticks
Speaker 4: before actually getting the trucks, and again that means less
Speaker 4: labor and fewer trucks.
Speaker 3: So those companies, I'm.
Speaker 1: Going to get a T shirt that says knee jerk
Speaker 1: reaction because I just think, you know, anybody who comes
Speaker 1: on right reminds us like, we're going to see how
Speaker 1: this plays out. They're going to be winners and losers,
Speaker 1: no doubt about it, and our world is going to change.
Speaker 1: But you know, I don't know. I guess we'll have
Speaker 1: to just wait and see.
Speaker 3: Be patient.
Speaker 1: That AI scared trade, so logistics stocks. We're seeing a
Speaker 1: play at real estate servicing companies too.
Speaker 3: That's another one. It's really hard to find the winners.
Speaker 4: I feel almost every sector is considered to be a
Speaker 4: loser in some sap or form. An interesting one is
Speaker 4: real estate services cbr E groups that dropped as much
Speaker 4: as fifteen percent. This is a real estate services company.
Speaker 4: Of course, of those kinds of commercial real estate companies
Speaker 4: have been under a lot of pressure ever since the
Speaker 4: pandemic Obviously there was a big lag, there was a
Speaker 4: big issue with office space. But the company is saying
Speaker 4: now that the outlook remains uncertain as AI may reduce
Speaker 4: long term office space demand. They're saying fewer and fewer
Speaker 4: workers may work from the office, so there will be
Speaker 4: less and less demand for those massive office buildings.
Speaker 3: Obviously that's very few Have I heard this.
Speaker 5: I was just going to say, yeah, I thought this
Speaker 5: happened during COVID, in post COVID, but.
Speaker 1: I don't know.
Speaker 3: We talked about it six years ago.
Speaker 1: I thought it's going to create new jobs. Yeah.
Speaker 4: Also, I mean a lot of those things you can
Speaker 4: see a few day trade. The analysts are saying, oh,
Speaker 4: this is overblown, and there is a little bit of
Speaker 4: calm down. But this is obviously like really in the future.
Speaker 4: But investors are definitely punishing any sector that could be
Speaker 4: in any way shaped by AI.
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