Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers podcast, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I'm Tim Stinibeck along with Carol Masser. Let's take a
Speaker 1: look at some stocks on the move today. With us
Speaker 1: is Bloomberg News Equities reporter Alexandra Semenova. Alex what's on
Speaker 1: your radar today?
Speaker 3: Hey, guys, Always great to be on with you. We
Speaker 3: got to, of course, start with Tesla. We're all watching
Speaker 3: that stock after the very public blow up between CEO
Speaker 3: Elon Musk and President Donald Trump last week. It's actually
Speaker 3: up a little bit today. This comes even as it
Speaker 3: got to downgrades from firms on Wall Street that's Baird
Speaker 3: and Argust Research. Of course, investors have been worried about
Speaker 3: the reputational damage that this political fallout has done for
Speaker 3: the company, and they were also worried about the fact
Speaker 3: that it might not deliver on its Robotaxi promises. Obviously,
Speaker 3: this is coming at a very difficult time for Tesla.
Speaker 3: Shares are down about twenty seven percent in twenty twenty five,
Speaker 3: making it the weakest performer of the so called Magnificent
Speaker 3: seven stocks, and they had, of course rallied after the
Speaker 3: election and then peaked in December, and obviously it's been
Speaker 3: a really difficult time for the company. Elon Musk had
Speaker 3: focused so much on his political endeavors in the White
Speaker 3: House and then had this very public fallout. The stock
Speaker 3: fell fourteen percent on Thursday, was its worst day since
Speaker 3: twenty twenty three, and obviously now Wall Street is just
Speaker 3: trying to assess the long term damage.
Speaker 1: Yeah. What I find notable about this oftentimes, Alex, when
Speaker 1: you see downgrades or double down grades such as this,
Speaker 1: you'll see the stock react accordingly. Seems like a lot
Speaker 1: of this was baked into the stock, given that shares
Speaker 1: fell what close to fifteen percent just last week, So
Speaker 1: it's almost like in this case, the analysts are catching up.
Speaker 2: Yeah.
Speaker 3: Sometimes you know, analyst downgrades are a contrarian indicator to him.
Speaker 3: And obviously when we saw the kind of sell off
Speaker 3: that we did, there are still people who are big
Speaker 3: believers in this company and who saw it as an
Speaker 3: opportunity to buy in. One of my sources, Dave Maza,
Speaker 3: he's the CEO of Roundhill Investments, described it really well.
Speaker 3: Companies like Tesla. They don't trade on fundamentals obviously, they
Speaker 3: trade on something he called a dream premium, and I
Speaker 3: think that's kind of what's happening.
Speaker 4: Here, safe to say, one of the big dream but
Speaker 4: maybe also reality Premiums is all things with AI, and
Speaker 4: that leads us to Meta. You are watching Meta today
Speaker 4: and it definitely has an AI connection here.
Speaker 3: Yeah, we got to talk about this incredible scoop by
Speaker 3: our Bloomberg reporters here. Meta is in talks to make
Speaker 3: a multi billion dollar deal with startup scale Ai. It
Speaker 3: could exceed ten billion dollars in value. This is, of course,
Speaker 3: according to sources familiar with the discussions who chose not
Speaker 3: to be identified due to their proximity to the deal,
Speaker 3: and basically, scale Ai provides data labeling services. It helps
Speaker 3: companies train their machine learning model, so really really big
Speaker 3: investment here for Meta. It also works with customers like
Speaker 3: Microsoft and open A. The stock is actually flat today,
Speaker 3: not not big moves across the equity market, so not
Speaker 3: reacting very much.
Speaker 1: Yeah, this is This is a fascinating write up by
Speaker 1: our team including Seth Figgerman and Rachel Metz. Twenty eight
Speaker 1: year old AI executive Alexander Wong. He went to Capitol
Speaker 1: Hill to tell policymakers what they needed to do maintain
Speaker 1: US dominance, and now metas set to throw Carol billions
Speaker 1: of dollars at this startup. It's pretty remarkable to say.
Speaker 4: Yeah, they talk about, you know, how they've evolved their
Speaker 4: business increasingly relying on high paid contractors with graduate degrees
Speaker 4: to improve AI systems, and has deepened its relationship with
Speaker 4: the US government through defense deals. So Alex giving us
Speaker 4: some context as well. But it's interesting to see a
Speaker 4: very established company like Meta. But the AI grab it's
Speaker 4: pretty intense. And when we're talking about maybe as much
Speaker 4: as ten billion dollars, that's some serious money. Let's get
Speaker 4: to I think it's the number one gainer. It has
Speaker 4: been at points during the day in the S and
Speaker 4: P five hundred, the NASDAQ one hundred, Warner Brothers, Discovery,
Speaker 4: you're watching that one as well.
Speaker 3: Alex, Yeah, this was some interesting news today. It is
Speaker 3: actually splitting into two independent companies, Global Networks and Streaming
Speaker 3: and Studios. Global Networks will include entertainment, sports, and cable
Speaker 3: television brands such as CNN, TNT, and TBS, and it'll
Speaker 3: hold a twenty percent stake in streaming and studios, and
Speaker 3: the separation is actually expected to be completed by mid
Speaker 3: twenty twenty six, allowing each company to pursue its own
Speaker 3: investment deals and kind of operate as separate entities. And
Speaker 3: this was meant to unshackle, you know, it's fast growing
Speaker 3: streaming business from the legacy cable networks that perhaps aren't
Speaker 3: doing as well. Obviously, there's this big there's been this
Speaker 3: big move into streaming services while cable news isn't necessarily
Speaker 3: as popular anymore and Lust we're generally positive on this deal.
Speaker 3: Benchmark said it was an aggressive buyer on this news.
Speaker 3: Firms like Keeping Capital Markets and Vital Knowledge also said
Speaker 3: it was positive, but the details of the deal aren't
Speaker 3: necessarily clear yet. So that's something to watch for here.
Speaker 1: I don't know, I'm old enough. Remember when bigger was
Speaker 1: better just a few years ago, and then now you
Speaker 1: have a company such as Comcasts spinning off its media
Speaker 1: divisions into a couple different companies and figuring out what
Speaker 1: that's going to look like, Alex, I mean, it seems
Speaker 1: to me. And we heard Paul Sweeney talk about this
Speaker 1: earlier on Bloomberg Intelligence. At the end of the day.
Speaker 1: You don't know what necessarily is going to happen when
Speaker 1: it comes to these stocks or the businesses, but a
Speaker 1: sure thing is that the bankers are having a payday.
Speaker 3: Yeah, they searched youss such as this, they certainly are,
Speaker 3: you know. And it's also been pretty incredible to see
Speaker 3: these massive companies that brought us these very cable networks
Speaker 3: now offer raying into streaming services, and then consumers are
Speaker 3: all kind of getting those packaged up once again. So
Speaker 3: kind of an interesting shift here.
Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with
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Speaker 1: Mm hmm