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 3: I'm Carol Messer along with Tim Stanvik. Let's get to
Speaker 3: you some stocks on the move this hour. And joining
Speaker 3: us to do that is Bloomberg News Equities reporter and
Speaker 3: deputy team leader for US Equities Carmen Rhin in case
Speaker 3: she's in the house. We talked about what's going on
Speaker 3: in the overall markets, but one stock really under pressure
Speaker 3: is AMD today.
Speaker 4: Yeah, and shares are off about sixteen percent right now.
Speaker 4: This is on track to close at the lowest level
Speaker 4: since well just January ninth, but to have the worst
Speaker 4: day since May twenty seventeen. So a really significant job
Speaker 4: here for AMD. So basically the company gave an underwhelming
Speaker 4: sales forecast and that really increased concerns that investors have
Speaker 4: had that is just not making enough progress on AI,
Speaker 4: that it's not capturing enough of the billions of dollars
Speaker 4: of capital expenditures that like hyperscalers have pledged to building
Speaker 4: out AI infrastructure. I think the other thing that's really
Speaker 4: important to point out here is that their forecast. So
Speaker 4: they said first quarter sales would be about nine point
Speaker 4: eight billion plus or minus three hundred million. That actually
Speaker 4: was a little bit higher than the average analyst estimate.
Speaker 4: I think she really goes to show how much the
Speaker 4: beat and raise is important, but also beats need to
Speaker 4: be very considerable. Investors are so quick to punish the
Speaker 4: shares of companies that aren't like blowing expectations out.
Speaker 1: Of the water. And the stock in twenty twenty five
Speaker 1: was up seventy seven percent, down eighteen percent the year before,
Speaker 1: but still, I mean, it's if you look at the
Speaker 1: last few years this has been on just Iran, Yeah.
Speaker 4: Huge beneficiary of AI.
Speaker 3: Yeah, and was thirteen percent higher already in twenty twenty
Speaker 3: six before this release. So exactly, you're right, Like, I mean,
Speaker 3: the expectations are pretty high. All really listed in the
Speaker 3: tech space. This was one we were waiting for earnings
Speaker 3: last night. They came in late. Super micro Computer Yeah,
Speaker 3: so SMCI is.
Speaker 4: Really you know, taiale of two AI stocks. Right, So
Speaker 4: shares are up thirteen percent right now, best day on
Speaker 4: track for the best day since May twenty twenty five.
Speaker 4: And really what we're seeing here is just the opposite
Speaker 4: of AMD. You know, they gave a forecast that you know,
Speaker 4: said they're doing well. They see more demand for AI,
Speaker 4: especially as a maker of servers that house chips that
Speaker 4: run these AI workloads. So investors really bidding shares up here.
Speaker 4: I mean important to point out that the stock you know,
Speaker 4: fell it's just been super valid all you know, up down.
Speaker 4: If you look at the chart from last year, is
Speaker 4: really all over the place, so well off highs.
Speaker 3: I was going to say, check out our podcast because
Speaker 3: I feel like we get schooled by our in a
Speaker 3: good way, our Bloomberg intelligence folks who are like, here's
Speaker 3: what this company does, and here's what the AI trade.
Speaker 3: Because it's not all the same. It's not all maybe
Speaker 3: the hyperscaler trade or play, but it's just kind of
Speaker 3: the distinctions are important and you're seeing that play out,
Speaker 3: and certainly the earnings really results in the action and
Speaker 3: just kind of the overall AI trade.
Speaker 1: So every company that you've given us thus far, every
Speaker 1: stock you give us has been a double digit movie,
Speaker 1: either to the upside or the downside. Same with our
Speaker 1: next one.
Speaker 4: I mean, yeah, let's take a look and another you know,
Speaker 4: piece of the AI puzzle so we're looking at app
Speaker 4: loven it's down fifteen percent right now. Also Unity Software,
Speaker 4: so this is actually off lows of the day. It
Speaker 4: was down about twelve percent. Now it's only two point
Speaker 4: three percent lower, so a little bit of an uptick
Speaker 4: there for them. So both of these companies have really
Speaker 4: gotten caught in the software related sell off that we've seen,
Speaker 4: you know, after Anthropic is really some new tools, it's
Speaker 4: really just taken the air out of the tires and
Speaker 4: software sector which was already under pressure. Sort of specifically
Speaker 4: here there was a report from ad Exchanger about a
Speaker 4: startup cloud using AI agents focusing on mobile ad monetizations
Speaker 4: that very specifically hits app Lovin, and the stock was
Speaker 4: actually also hit last week after Alphabet rolled out Project Genie,
Speaker 4: which hit other video games sort of related stocks as well.
Speaker 2: This stockmover's report from Bloomberg Radio. Check back with us
Speaker 2: throughout the day for the latest roundup of companies making
Speaker 2: news on Wall Street and for the latest market moving headlines.
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