WEBVTT - Meta, Chipotle, Comcast Fall After Earnings

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

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<v Speaker 2>The Stock Movers report, your roundup of companies making moves

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

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<v Speaker 1>I'm Jim Stadevak along with Carol Masser. Let's take a

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<v Speaker 1>look at some stocks on the move today with us

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<v Speaker 1>as Bloomberg News cross ass at reporter Deniza Sakova. Denitsa,

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<v Speaker 1>I think you're looking at some of these companies that reported.

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<v Speaker 3>Meta Platforms stealed down eleven percent today. But the more

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<v Speaker 3>interesting story to me is what's happening in the corporate

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<v Speaker 3>bond market. So the thicker, of course is Meta. The

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<v Speaker 3>stock tumboat as much as fourteen percent in earlier trading.

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<v Speaker 3>Of course, it comes after Mark Zuckerbert warned the company

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<v Speaker 3>we need to spend even more aggressively on AI, which

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<v Speaker 3>is not the first time he does this, so perhaps

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<v Speaker 3>that is not surprising. But what we're seeing in the

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<v Speaker 3>bond market is really impressive. Meta Platforms said they're playing

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<v Speaker 3>to so thirty billion investment grade bonds, and the demand

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<v Speaker 3>where you're seeing there from investors, it's absolutely unpresented. One

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<v Speaker 3>hundred and twenty five billion of orders for Meta bonds,

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<v Speaker 3>surpassing the biggest deal before that, which was for CBS

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<v Speaker 3>in two thousand and eighteen, So really big demand. There

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<v Speaker 3>very different reactions in the stock. We're definitely not seeing

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<v Speaker 3>that inst world demand at the moment. Revenue for the

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<v Speaker 3>company rose this year. We saw out the revenue doing well,

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<v Speaker 3>so fundamentals clearly are doing well. But we saw a

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<v Speaker 3>lot of downgrades today. One of them was Oppenheimer. It

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<v Speaker 3>downgraded to perform from outperform, saying investors will struggle to

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<v Speaker 3>rationalize the p and then Benchmark downgraded to hold from buy,

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<v Speaker 3>saying the company will be range bound. After the big

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<v Speaker 3>drop today, the company is up only fourteen percent. And

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<v Speaker 3>we remember, like just a few weeks back, we were

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<v Speaker 3>talking about kind of real rentless rally and we can

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<v Speaker 3>see one day of turmoil, how much of the heats

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<v Speaker 3>it takes off.

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<v Speaker 4>Just one day though, So see today or one quarter?

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<v Speaker 4>I guess, I mean, I guess we have to wait

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<v Speaker 4>and see, right, Yeah, Like what it all means as

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<v Speaker 4>I think about the conversation we had with Mark Mahaney.

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<v Speaker 1>Yeah he missed that conversation. Check it out on our

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<v Speaker 1>podcast Speed. He's been covering these companies for years. And

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<v Speaker 1>you know there are some idiosyncrasies with metas spending that

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<v Speaker 1>you brought up. Yeah, that don't make investors look at

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<v Speaker 1>it the same way as other companies that are making

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<v Speaker 1>those investments that can then sell that capacity.

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<v Speaker 4>But he basically talked about how they're monetizing it in

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<v Speaker 4>terms of advert ads. Right, he's stick right, he definitely

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<v Speaker 4>has apperformed. He's got on that company. Hey, let's get

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<v Speaker 4>to one that's having a tough time in today's session.

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<v Speaker 4>Shares of Chipotle she Bot.

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<v Speaker 3>Is having a really bad day, to be prettcise on

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<v Speaker 3>inter day basis, it's the worst day since twenty and twelve.

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<v Speaker 3>The ticker is CMG. Shares plummeted after the chain could

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<v Speaker 3>its outlook for a third time this year. And we're

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<v Speaker 3>worried about young diners. They pulled back from eating out,

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<v Speaker 3>and obviously there has been a lot of concern about

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<v Speaker 3>consumer spending and this is adding up. It's not only Chipotle.

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<v Speaker 3>We're seeing similar sign from Shake Shack. In the third

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<v Speaker 3>quarter for Chipotle, comparable store sales rose slightly but fell

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<v Speaker 3>short of what Wall Street was expecting. Chipotli shares fell

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<v Speaker 3>as much as twenty two percent in earlier trading. We

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<v Speaker 3>actually saw some dip in cava and sweet green, So

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<v Speaker 3>definitely the industry is reacting to this. The company saw

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<v Speaker 3>a world poollback in visit frequency. About about forty percent

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<v Speaker 3>of the company customers come from household that make less

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<v Speaker 3>than one hundred thousand doors, and we're seeing a pool

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<v Speaker 3>back there, and that's very worse and for the economy

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<v Speaker 3>and for young people no longer eating Chipotle.

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<v Speaker 1>Yes, I will tell you I this is totally anecdotal.

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<v Speaker 1>And I never got to the lunch because of our

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<v Speaker 1>schedule here. But yesterday we had fed day, so I

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<v Speaker 1>had some.

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<v Speaker 4>Time allowed to get lunch.

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<v Speaker 1>Now we're lucky bring it usually, So I treated myself

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<v Speaker 1>to one of these fast casual places. Yes, I went

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<v Speaker 1>a little later than the lunch rush. There was only

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<v Speaker 1>one other person in there. Oh, I was like, this

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<v Speaker 1>is not now good. Usually there are long lines at

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<v Speaker 1>these places.

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<v Speaker 4>So that a company story is it something more broadly

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<v Speaker 4>in the.

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<v Speaker 3>I feel though there is definitely a little bit more

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<v Speaker 3>of a trend. That's quite a few companies are doing well.

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<v Speaker 3>We're seeing uh, we're seeing Chipotle and Shakeshap some of

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<v Speaker 3>those that been hit. Also, people are eating healthier. Maybe

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<v Speaker 3>that's part of it. Everyone's talking about.

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<v Speaker 4>That Chipotle was kind of healthy.

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<v Speaker 3>Maybe compared to Cava and Sweet Green, they're maybe a

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<v Speaker 3>little bit healthier, not that they're doing well. They're also

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<v Speaker 3>similaris yeah, I think it's a little bit healthier.

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<v Speaker 1>Skip the tortilla, right, don't get the chips.

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<v Speaker 2>No chips.

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<v Speaker 4>That's the point.

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<v Speaker 3>You sell it as a base, you know, it depends

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<v Speaker 3>you can make it your own.

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<v Speaker 4>Twenty second time Comcast.

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<v Speaker 3>Comcast pretty bad day. It actually was up initially after

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<v Speaker 3>a drnings result, but it lost one hundred thousand subscribers.

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<v Speaker 3>This is the tenth quarter when they see a lost

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<v Speaker 3>in subscribers. It was actually less than one of what

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<v Speaker 3>ann expected. The revenue also beat estimates. But that said,

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<v Speaker 3>it has just been a business that've been strolling for

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<v Speaker 3>a very long time. Down thirty percent here today, and

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<v Speaker 3>it's just pretty much a story of losing competition to

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<v Speaker 3>streaming and internet providers.

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<v Speaker 4>Take her as CMCSA for those interested.

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