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 Jim Stadevak along with Carol Masser. Let's take a
Speaker 1: look at some stocks on the move today with us
Speaker 1: as Bloomberg News cross ass at reporter Deniza Sakova. Denitsa,
Speaker 1: I think you're looking at some of these companies that reported.
Speaker 3: Meta Platforms stealed down eleven percent today. But the more
Speaker 3: interesting story to me is what's happening in the corporate
Speaker 3: bond market. So the thicker, of course is Meta. The
Speaker 3: stock tumboat as much as fourteen percent in earlier trading.
Speaker 3: Of course, it comes after Mark Zuckerbert warned the company
Speaker 3: we need to spend even more aggressively on AI, which
Speaker 3: is not the first time he does this, so perhaps
Speaker 3: that is not surprising. But what we're seeing in the
Speaker 3: bond market is really impressive. Meta Platforms said they're playing
Speaker 3: to so thirty billion investment grade bonds, and the demand
Speaker 3: where you're seeing there from investors, it's absolutely unpresented. One
Speaker 3: hundred and twenty five billion of orders for Meta bonds,
Speaker 3: surpassing the biggest deal before that, which was for CBS
Speaker 3: in two thousand and eighteen, So really big demand. There
Speaker 3: very different reactions in the stock. We're definitely not seeing
Speaker 3: that inst world demand at the moment. Revenue for the
Speaker 3: company rose this year. We saw out the revenue doing well,
Speaker 3: so fundamentals clearly are doing well. But we saw a
Speaker 3: lot of downgrades today. One of them was Oppenheimer. It
Speaker 3: downgraded to perform from outperform, saying investors will struggle to
Speaker 3: rationalize the p and then Benchmark downgraded to hold from buy,
Speaker 3: saying the company will be range bound. After the big
Speaker 3: drop today, the company is up only fourteen percent. And
Speaker 3: we remember, like just a few weeks back, we were
Speaker 3: talking about kind of real rentless rally and we can
Speaker 3: see one day of turmoil, how much of the heats
Speaker 3: it takes off.
Speaker 4: Just one day though, So see today or one quarter?
Speaker 4: I guess, I mean, I guess we have to wait
Speaker 4: and see, right, Yeah, Like what it all means as
Speaker 4: I think about the conversation we had with Mark Mahaney.
Speaker 1: Yeah he missed that conversation. Check it out on our
Speaker 1: podcast Speed. He's been covering these companies for years. And
Speaker 1: you know there are some idiosyncrasies with metas spending that
Speaker 1: you brought up. Yeah, that don't make investors look at
Speaker 1: it the same way as other companies that are making
Speaker 1: those investments that can then sell that capacity.
Speaker 4: But he basically talked about how they're monetizing it in
Speaker 4: terms of advert ads. Right, he's stick right, he definitely
Speaker 4: has apperformed. He's got on that company. Hey, let's get
Speaker 4: to one that's having a tough time in today's session.
Speaker 4: Shares of Chipotle she Bot.
Speaker 3: Is having a really bad day, to be prettcise on
Speaker 3: inter day basis, it's the worst day since twenty and twelve.
Speaker 3: The ticker is CMG. Shares plummeted after the chain could
Speaker 3: its outlook for a third time this year. And we're
Speaker 3: worried about young diners. They pulled back from eating out,
Speaker 3: and obviously there has been a lot of concern about
Speaker 3: consumer spending and this is adding up. It's not only Chipotle.
Speaker 3: We're seeing similar sign from Shake Shack. In the third
Speaker 3: quarter for Chipotle, comparable store sales rose slightly but fell
Speaker 3: short of what Wall Street was expecting. Chipotli shares fell
Speaker 3: as much as twenty two percent in earlier trading. We
Speaker 3: actually saw some dip in cava and sweet green, So
Speaker 3: definitely the industry is reacting to this. The company saw
Speaker 3: a world poollback in visit frequency. About about forty percent
Speaker 3: of the company customers come from household that make less
Speaker 3: than one hundred thousand doors, and we're seeing a pool
Speaker 3: back there, and that's very worse and for the economy
Speaker 3: and for young people no longer eating Chipotle.
Speaker 1: Yes, I will tell you I this is totally anecdotal.
Speaker 1: And I never got to the lunch because of our
Speaker 1: schedule here. But yesterday we had fed day, so I
Speaker 1: had some.
Speaker 4: Time allowed to get lunch.
Speaker 1: Now we're lucky bring it usually, So I treated myself
Speaker 1: to one of these fast casual places. Yes, I went
Speaker 1: a little later than the lunch rush. There was only
Speaker 1: one other person in there. Oh, I was like, this
Speaker 1: is not now good. Usually there are long lines at
Speaker 1: these places.
Speaker 4: So that a company story is it something more broadly
Speaker 4: in the.
Speaker 3: I feel though there is definitely a little bit more
Speaker 3: of a trend. That's quite a few companies are doing well.
Speaker 3: We're seeing uh, we're seeing Chipotle and Shakeshap some of
Speaker 3: those that been hit. Also, people are eating healthier. Maybe
Speaker 3: that's part of it. Everyone's talking about.
Speaker 4: That Chipotle was kind of healthy.
Speaker 3: Maybe compared to Cava and Sweet Green, they're maybe a
Speaker 3: little bit healthier, not that they're doing well. They're also
Speaker 3: similaris yeah, I think it's a little bit healthier.
Speaker 1: Skip the tortilla, right, don't get the chips.
Speaker 2: No chips.
Speaker 4: That's the point.
Speaker 3: You sell it as a base, you know, it depends
Speaker 3: you can make it your own.
Speaker 4: Twenty second time Comcast.
Speaker 3: Comcast pretty bad day. It actually was up initially after
Speaker 3: a drnings result, but it lost one hundred thousand subscribers.
Speaker 3: This is the tenth quarter when they see a lost
Speaker 3: in subscribers. It was actually less than one of what
Speaker 3: ann expected. The revenue also beat estimates. But that said,
Speaker 3: it has just been a business that've been strolling for
Speaker 3: a very long time. Down thirty percent here today, and
Speaker 3: it's just pretty much a story of losing competition to
Speaker 3: streaming and internet providers.
Speaker 4: Take her as CMCSA for those interested.
Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.