1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market harnessing the power of Bloomberg Data. 4 00:00:16,760 --> 00:00:19,200 Speaker 1: I'm Jim Stadevak along with Carol Masser. Let's take a 5 00:00:19,239 --> 00:00:21,400 Speaker 1: look at some stocks on the move today with us 6 00:00:21,400 --> 00:00:25,600 Speaker 1: as Bloomberg News cross ass at reporter Deniza Sakova. Denitsa, 7 00:00:25,600 --> 00:00:28,640 Speaker 1: I think you're looking at some of these companies that reported. 8 00:00:28,720 --> 00:00:33,240 Speaker 3: Meta Platforms stealed down eleven percent today. But the more 9 00:00:33,280 --> 00:00:35,920 Speaker 3: interesting story to me is what's happening in the corporate 10 00:00:35,960 --> 00:00:40,400 Speaker 3: bond market. So the thicker, of course is Meta. The 11 00:00:40,440 --> 00:00:44,400 Speaker 3: stock tumboat as much as fourteen percent in earlier trading. 12 00:00:44,440 --> 00:00:47,519 Speaker 3: Of course, it comes after Mark Zuckerbert warned the company 13 00:00:47,520 --> 00:00:50,440 Speaker 3: we need to spend even more aggressively on AI, which 14 00:00:50,479 --> 00:00:52,400 Speaker 3: is not the first time he does this, so perhaps 15 00:00:52,440 --> 00:00:55,280 Speaker 3: that is not surprising. But what we're seeing in the 16 00:00:55,320 --> 00:00:58,440 Speaker 3: bond market is really impressive. Meta Platforms said they're playing 17 00:00:58,480 --> 00:01:02,240 Speaker 3: to so thirty billion investment grade bonds, and the demand 18 00:01:02,280 --> 00:01:05,960 Speaker 3: where you're seeing there from investors, it's absolutely unpresented. One 19 00:01:06,040 --> 00:01:09,480 Speaker 3: hundred and twenty five billion of orders for Meta bonds, 20 00:01:09,520 --> 00:01:13,039 Speaker 3: surpassing the biggest deal before that, which was for CBS 21 00:01:13,240 --> 00:01:16,320 Speaker 3: in two thousand and eighteen, So really big demand. There 22 00:01:17,440 --> 00:01:19,959 Speaker 3: very different reactions in the stock. We're definitely not seeing 23 00:01:20,160 --> 00:01:23,080 Speaker 3: that inst world demand at the moment. Revenue for the 24 00:01:23,120 --> 00:01:26,080 Speaker 3: company rose this year. We saw out the revenue doing well, 25 00:01:26,160 --> 00:01:29,280 Speaker 3: so fundamentals clearly are doing well. But we saw a 26 00:01:29,319 --> 00:01:33,000 Speaker 3: lot of downgrades today. One of them was Oppenheimer. It 27 00:01:33,160 --> 00:01:37,840 Speaker 3: downgraded to perform from outperform, saying investors will struggle to 28 00:01:38,080 --> 00:01:42,280 Speaker 3: rationalize the p and then Benchmark downgraded to hold from buy, 29 00:01:42,640 --> 00:01:45,560 Speaker 3: saying the company will be range bound. After the big 30 00:01:45,640 --> 00:01:48,240 Speaker 3: drop today, the company is up only fourteen percent. And 31 00:01:48,280 --> 00:01:50,120 Speaker 3: we remember, like just a few weeks back, we were 32 00:01:50,120 --> 00:01:52,480 Speaker 3: talking about kind of real rentless rally and we can 33 00:01:52,520 --> 00:01:55,520 Speaker 3: see one day of turmoil, how much of the heats 34 00:01:55,600 --> 00:01:56,560 Speaker 3: it takes off. 35 00:01:57,120 --> 00:01:59,480 Speaker 4: Just one day though, So see today or one quarter? 36 00:01:59,560 --> 00:02:01,520 Speaker 4: I guess, I mean, I guess we have to wait 37 00:02:01,560 --> 00:02:03,480 Speaker 4: and see, right, Yeah, Like what it all means as 38 00:02:03,560 --> 00:02:05,720 Speaker 4: I think about the conversation we had with Mark Mahaney. 39 00:02:05,800 --> 00:02:07,600 Speaker 1: Yeah he missed that conversation. Check it out on our 40 00:02:07,640 --> 00:02:11,079 Speaker 1: podcast Speed. He's been covering these companies for years. And 41 00:02:11,600 --> 00:02:14,760 Speaker 1: you know there are some idiosyncrasies with metas spending that 42 00:02:14,800 --> 00:02:17,600 Speaker 1: you brought up. Yeah, that don't make investors look at 43 00:02:17,639 --> 00:02:19,519 Speaker 1: it the same way as other companies that are making 44 00:02:19,560 --> 00:02:21,640 Speaker 1: those investments that can then sell that capacity. 45 00:02:21,760 --> 00:02:23,720 Speaker 4: But he basically talked about how they're monetizing it in 46 00:02:23,800 --> 00:02:27,400 Speaker 4: terms of advert ads. Right, he's stick right, he definitely 47 00:02:27,400 --> 00:02:30,359 Speaker 4: has apperformed. He's got on that company. Hey, let's get 48 00:02:30,400 --> 00:02:33,200 Speaker 4: to one that's having a tough time in today's session. 49 00:02:33,400 --> 00:02:35,320 Speaker 4: Shares of Chipotle she Bot. 50 00:02:35,360 --> 00:02:38,080 Speaker 3: Is having a really bad day, to be prettcise on 51 00:02:38,200 --> 00:02:41,880 Speaker 3: inter day basis, it's the worst day since twenty and twelve. 52 00:02:41,919 --> 00:02:46,760 Speaker 3: The ticker is CMG. Shares plummeted after the chain could 53 00:02:46,880 --> 00:02:50,320 Speaker 3: its outlook for a third time this year. And we're 54 00:02:50,320 --> 00:02:54,799 Speaker 3: worried about young diners. They pulled back from eating out, 55 00:02:55,480 --> 00:02:58,480 Speaker 3: and obviously there has been a lot of concern about 56 00:02:58,480 --> 00:03:01,679 Speaker 3: consumer spending and this is adding up. It's not only Chipotle. 57 00:03:01,800 --> 00:03:06,360 Speaker 3: We're seeing similar sign from Shake Shack. In the third 58 00:03:06,440 --> 00:03:11,080 Speaker 3: quarter for Chipotle, comparable store sales rose slightly but fell 59 00:03:11,160 --> 00:03:15,440 Speaker 3: short of what Wall Street was expecting. Chipotli shares fell 60 00:03:15,520 --> 00:03:18,480 Speaker 3: as much as twenty two percent in earlier trading. We 61 00:03:18,560 --> 00:03:21,560 Speaker 3: actually saw some dip in cava and sweet green, So 62 00:03:21,720 --> 00:03:24,799 Speaker 3: definitely the industry is reacting to this. The company saw 63 00:03:24,919 --> 00:03:29,080 Speaker 3: a world poollback in visit frequency. About about forty percent 64 00:03:29,120 --> 00:03:32,400 Speaker 3: of the company customers come from household that make less 65 00:03:32,400 --> 00:03:35,040 Speaker 3: than one hundred thousand doors, and we're seeing a pool 66 00:03:35,080 --> 00:03:37,320 Speaker 3: back there, and that's very worse and for the economy 67 00:03:37,640 --> 00:03:39,800 Speaker 3: and for young people no longer eating Chipotle. 68 00:03:40,080 --> 00:03:42,880 Speaker 1: Yes, I will tell you I this is totally anecdotal. 69 00:03:43,160 --> 00:03:44,800 Speaker 1: And I never got to the lunch because of our 70 00:03:44,840 --> 00:03:46,960 Speaker 1: schedule here. But yesterday we had fed day, so I 71 00:03:46,960 --> 00:03:47,280 Speaker 1: had some. 72 00:03:47,240 --> 00:03:48,800 Speaker 4: Time allowed to get lunch. 73 00:03:48,840 --> 00:03:52,160 Speaker 1: Now we're lucky bring it usually, So I treated myself 74 00:03:52,160 --> 00:03:54,320 Speaker 1: to one of these fast casual places. Yes, I went 75 00:03:54,320 --> 00:03:56,560 Speaker 1: a little later than the lunch rush. There was only 76 00:03:56,640 --> 00:03:59,400 Speaker 1: one other person in there. Oh, I was like, this 77 00:03:59,480 --> 00:04:02,520 Speaker 1: is not now good. Usually there are long lines at 78 00:04:02,560 --> 00:04:02,960 Speaker 1: these places. 79 00:04:02,960 --> 00:04:05,680 Speaker 4: So that a company story is it something more broadly 80 00:04:05,960 --> 00:04:06,240 Speaker 4: in the. 81 00:04:08,200 --> 00:04:10,240 Speaker 3: I feel though there is definitely a little bit more 82 00:04:10,240 --> 00:04:13,080 Speaker 3: of a trend. That's quite a few companies are doing well. 83 00:04:13,200 --> 00:04:17,839 Speaker 3: We're seeing uh, we're seeing Chipotle and Shakeshap some of 84 00:04:17,880 --> 00:04:20,600 Speaker 3: those that been hit. Also, people are eating healthier. Maybe 85 00:04:20,600 --> 00:04:22,320 Speaker 3: that's part of it. Everyone's talking about. 86 00:04:22,080 --> 00:04:24,560 Speaker 4: That Chipotle was kind of healthy. 87 00:04:24,600 --> 00:04:27,600 Speaker 3: Maybe compared to Cava and Sweet Green, they're maybe a 88 00:04:27,600 --> 00:04:29,640 Speaker 3: little bit healthier, not that they're doing well. They're also 89 00:04:30,400 --> 00:04:33,359 Speaker 3: similaris yeah, I think it's a little bit healthier. 90 00:04:33,920 --> 00:04:38,600 Speaker 1: Skip the tortilla, right, don't get the chips. 91 00:04:38,600 --> 00:04:39,159 Speaker 2: No chips. 92 00:04:39,760 --> 00:04:40,320 Speaker 4: That's the point. 93 00:04:40,400 --> 00:04:42,599 Speaker 3: You sell it as a base, you know, it depends 94 00:04:42,600 --> 00:04:43,599 Speaker 3: you can make it your own. 95 00:04:44,200 --> 00:04:45,839 Speaker 4: Twenty second time Comcast. 96 00:04:45,600 --> 00:04:49,000 Speaker 3: Comcast pretty bad day. It actually was up initially after 97 00:04:49,040 --> 00:04:52,039 Speaker 3: a drnings result, but it lost one hundred thousand subscribers. 98 00:04:52,080 --> 00:04:56,680 Speaker 3: This is the tenth quarter when they see a lost 99 00:04:56,720 --> 00:04:59,120 Speaker 3: in subscribers. It was actually less than one of what 100 00:04:59,600 --> 00:05:04,080 Speaker 3: ann expected. The revenue also beat estimates. But that said, 101 00:05:04,080 --> 00:05:06,400 Speaker 3: it has just been a business that've been strolling for 102 00:05:06,440 --> 00:05:09,480 Speaker 3: a very long time. Down thirty percent here today, and 103 00:05:09,520 --> 00:05:12,680 Speaker 3: it's just pretty much a story of losing competition to 104 00:05:12,720 --> 00:05:14,320 Speaker 3: streaming and internet providers. 105 00:05:14,440 --> 00:05:17,520 Speaker 4: Take her as CMCSA for those interested. 106 00:05:18,360 --> 00:05:22,360 Speaker 2: The Stock Movers Report from Bloomberg Radio. 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