WEBVTT - Intel Gains, Peloton Falls, Reddit Slides

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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>Let's ta go look at some of the stocks on

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<v Speaker 1>the move today with us as Bloomberg News Equities reporter,

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<v Speaker 1>a deputy team leader for US Equities, Carmen Rhinikey, she

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<v Speaker 1>is in the house. We're going to start with a

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<v Speaker 1>big chip name.

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<v Speaker 3>Yeah, Intel. I mean there's been a lot of Intel

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<v Speaker 3>news lately and today is no exception. This is ticker

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<v Speaker 3>I INTC shares spiked and they're up about five and

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<v Speaker 3>a half percent today after a report that the company

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<v Speaker 3>is in early stage talks to add AMD as a

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<v Speaker 3>customer at its factories. So, as I said, this is

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<v Speaker 3>the latest new string of deals that have boosted Intel

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<v Speaker 3>shares the last few months. They have gained support from

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<v Speaker 3>the White House, which is taking a I think roughly

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<v Speaker 3>ten percent stake in Nvidia and soft Bank, and we

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<v Speaker 3>also Bloomberg News how to report last week that it's

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<v Speaker 3>also in talk for backing from Apple. So all of

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<v Speaker 3>these things have been really liked by investors. We've seen

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<v Speaker 3>the stock release spike.

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<v Speaker 1>Yeah, and it's really just taken off this year of

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<v Speaker 1>seventy six percent here to date. As Tim and I

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<v Speaker 1>always say when we go to the HDS function on

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<v Speaker 1>the Bloomberg and we realize, oh, yeah, that's right, the

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<v Speaker 1>US government is the third biggest investor in the company.

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<v Speaker 4>Yep, not the only one that the US government is

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<v Speaker 4>an investor. Of course, we'll talk about some of those

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<v Speaker 4>a little later, including Lithium America's. But I wonder everybody's

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<v Speaker 4>attention to Peloton out with some new gears, new prices today.

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<v Speaker 3>Yeah, so Peloton ticker pton Pton shares our down six

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<v Speaker 3>point six percent today. This is the worst day since

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<v Speaker 3>August August nineteenth. So they're raising prices on both hardware

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<v Speaker 3>and membership fees and doing a big sort of product overhaul.

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<v Speaker 3>So I think the stock's probably reacting most to the

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<v Speaker 3>increased prices. But there are also going to be new

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<v Speaker 3>versions of the bike, bike plus, tread tread Plus and

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<v Speaker 3>a new row plus as as well as you know,

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<v Speaker 3>some new sort of features on the hardware. This is

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<v Speaker 3>interesting because so they have a newer CEO, Peter Stern,

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<v Speaker 3>who came from Apple and Ford, and he's really been

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<v Speaker 3>working to turn around the company. It's had quite like

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<v Speaker 3>a few years of sort of declining sales. The stock

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<v Speaker 3>hasn't been doing super well. In August, it had to

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<v Speaker 3>cut about six percent of its staff and reduced or

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<v Speaker 3>projected full year revenue would drop two percent for fiscal

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<v Speaker 3>twenty twenty six. So you know, this is sort of

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<v Speaker 3>the first step in like a potential turnaround for the company.

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<v Speaker 3>So interesting to see that investors so far are not

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<v Speaker 3>are not happy with with what they've come out with.

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<v Speaker 1>All right, Reddit, we go our dd.

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<v Speaker 4>This what's going on with Reddit?

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<v Speaker 3>It was a little bit of a head scratcher. This

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<v Speaker 3>morning shows are down twelve percent. This is the worst

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<v Speaker 3>intra day drop since April fourth, which is kind of

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<v Speaker 3>big if you think about what was happening in April.

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<v Speaker 3>So huge drop for Reddit. So so what it seems

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<v Speaker 3>like is happening is that there is third party data

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<v Speaker 3>that's been going around on social media showing a drop

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<v Speaker 3>in citations from open ai. So Reddit, you know, it's

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<v Speaker 3>been used by sort of these large language models like

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<v Speaker 3>to help train them.

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<v Speaker 2>So als been.

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<v Speaker 1>Part of I thought the IPO right and the value

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<v Speaker 1>of the company that all of the data and the

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<v Speaker 1>very specific data that it could provide to AI companies

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<v Speaker 1>and others.

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<v Speaker 3>Exactly, and so I think that's why the stock is

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<v Speaker 3>reacting negatively to this. There's also been a few analysts

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<v Speaker 3>that have written about it. So Bloomberg Intelligence's man Deep

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<v Speaker 3>Singh shows that this decline is you know, it really

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<v Speaker 3>signals redd its exposure to search engine traffic. There might

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<v Speaker 3>this might have been because a little bit of a

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<v Speaker 3>switch in Google algorithm and how a lot of it's

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<v Speaker 3>you know, traffic and daily active user growth really hinges

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<v Speaker 3>on use from these sorts of chatbots. Brad Erickson and

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<v Speaker 3>RBC also it attributed sort of this stock weakness to this,

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<v Speaker 3>and he this is something that he's been watching for

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<v Speaker 3>the last few weeks, showing that the citation share on

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<v Speaker 3>GPT has gone down significantly.

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