1
00:00:02,520 --> 00:00:09,840
Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

2
00:00:10,080 --> 00:00:13,520
Speaker 2: This is the closing bell on the stock movers report

3
00:00:13,760 --> 00:00:16,720
Speaker 2: the company's making moves at the close of US trading

4
00:00:16,880 --> 00:00:21,400
Speaker 2: with Carol Masser, Tim Stenovak, Romain Bostik, and Katie Greifel.

5
00:00:22,160 --> 00:00:24,599
Speaker 3: All right, so let's get to some of the individual gainers,

6
00:00:24,680 --> 00:00:27,800
Speaker 3: if I may. Let's go to Paramount Skydance and Netflix.

7
00:00:27,840 --> 00:00:31,760
Speaker 3: Definitely some outperformance. Paramount Skuyddance up almost twenty one percent

8
00:00:31,840 --> 00:00:34,800
Speaker 3: guys today, and you have Netflix up about fourteen percent.

9
00:00:34,880 --> 00:00:38,200
Speaker 3: Here we know Paramount clinching that deal finally for Warner

10
00:00:38,240 --> 00:00:42,880
Speaker 3: Brothers Discovery out maneuvering Netflix after a month's long battle

11
00:00:42,880 --> 00:00:45,480
Speaker 3: by Green to pay one hundred and eleven billion for

12
00:00:45,520 --> 00:00:49,800
Speaker 3: the legendary Hollywood studio. We should point out them renovering. Well,

13
00:00:49,920 --> 00:00:52,280
Speaker 3: here's the deal. We could have a lot of conversations

14
00:00:52,320 --> 00:00:54,760
Speaker 3: because Tim and I have talked about maybe Netflix was

15
00:00:54,840 --> 00:00:57,280
Speaker 3: just really smart host.

16
00:00:57,680 --> 00:00:59,520
Speaker 4: Prize scholars that they didn't have yesterday.

17
00:00:59,600 --> 00:01:01,680
Speaker 3: Yeah, Netflix, right, they had, right.

18
00:01:01,880 --> 00:01:03,880
Speaker 1: But that's also interesting too because I mean, we didn't

19
00:01:03,880 --> 00:01:05,600
Speaker 1: really talk about this happened while we were on air,

20
00:01:05,680 --> 00:01:08,120
Speaker 1: because Ted Sarandos was at the White House and he

21
00:01:08,160 --> 00:01:10,880
Speaker 1: did come out of the White House. Reporters asked him

22
00:01:10,959 --> 00:01:13,560
Speaker 1: what happened? You like, I'm not doing any media, And then,

23
00:01:13,600 --> 00:01:16,039
Speaker 1: of course a few minutes later we got the headlines

24
00:01:16,040 --> 00:01:18,080
Speaker 1: that they were moving on. But there's been a lot

25
00:01:18,080 --> 00:01:20,959
Speaker 1: of speculation here about what Paramount is pain, whether it's

26
00:01:21,000 --> 00:01:23,440
Speaker 1: too much, whether and a lot of jokes online saying

27
00:01:23,480 --> 00:01:25,640
Speaker 1: the hey, maybe if Sarando's just waits a couple of years,

28
00:01:25,680 --> 00:01:27,600
Speaker 1: he can actually maybe buy some of those assets at

29
00:01:27,600 --> 00:01:29,840
Speaker 1: a fire sale when a Paramount, you know, maybe if

30
00:01:29,880 --> 00:01:31,399
Speaker 1: Paramount doesn't execute on that.

31
00:01:31,640 --> 00:01:34,200
Speaker 3: Yeah, let's be conspiracy theorist for a moment. What if

32
00:01:34,200 --> 00:01:36,880
Speaker 3: Netflix was all about just pushing up the price and

33
00:01:36,920 --> 00:01:39,399
Speaker 3: increasing the cost of this deal and like the.

34
00:01:39,360 --> 00:01:41,760
Speaker 1: Cut of your jib there increasing the day. Where's your

35
00:01:41,800 --> 00:01:44,520
Speaker 1: tinfoil hat? Is that down there on the balancee?

36
00:01:44,640 --> 00:01:46,600
Speaker 2: I mean, come on, like, I don't know.

37
00:01:47,400 --> 00:01:48,520
Speaker 5: All right, we're moving along.

38
00:01:48,560 --> 00:01:52,240
Speaker 3: It's been a great saga to watch. But anyway, Paramount

39
00:01:52,240 --> 00:01:55,760
Speaker 3: and Netflix definitely outperforming in today's session. Let's go on

40
00:01:55,840 --> 00:01:57,720
Speaker 3: over to Dell, number one gainer in the S and

41
00:01:57,760 --> 00:02:01,360
Speaker 3: P five hundred, jumping by the most in two years,

42
00:02:01,400 --> 00:02:03,960
Speaker 3: stock up about twenty one almost twenty two percent today,

43
00:02:04,000 --> 00:02:07,480
Speaker 3: pretty much finishing at its highs of the session. This

44
00:02:07,560 --> 00:02:09,919
Speaker 3: is after the company gave an outlook for sales of

45
00:02:09,960 --> 00:02:14,560
Speaker 3: its artificial intelligence servers that exceeded estimates. Definitely a sign

46
00:02:14,560 --> 00:02:16,880
Speaker 3: of our best demand for machines helping fuel the AI

47
00:02:17,280 --> 00:02:19,840
Speaker 3: data center build that company, by the way, saying it

48
00:02:19,880 --> 00:02:23,240
Speaker 3: will generate about fifty billion dollars in AI server revenue

49
00:02:23,520 --> 00:02:25,600
Speaker 3: in the current fiscal year which ends in January of

50
00:02:25,639 --> 00:02:28,639
Speaker 3: twenty twenty seven, and investors liking what they heard from

51
00:02:28,680 --> 00:02:31,160
Speaker 3: that company. And then I got to mention Block take

52
00:02:31,200 --> 00:02:34,960
Speaker 3: our xyz this one finishing up just shy of seventeen

53
00:02:35,040 --> 00:02:37,400
Speaker 3: percent here, up the most in about two years, at

54
00:02:37,480 --> 00:02:40,120
Speaker 3: least intra day after the company center was reducing its

55
00:02:40,160 --> 00:02:42,160
Speaker 3: workforce by nearly half in a bet on AI.

56
00:02:42,400 --> 00:02:44,520
Speaker 1: Yes, mister boss, Oh no, but this is important before

57
00:02:44,560 --> 00:02:46,840
Speaker 1: we move to Tim's decliners here, because I mean, obviously,

58
00:02:47,680 --> 00:02:49,600
Speaker 1: if Block does pull this off, the idea that they

59
00:02:49,600 --> 00:02:52,400
Speaker 1: have these efficiencies and are able to continue generating the

60
00:02:52,400 --> 00:02:55,120
Speaker 1: same revenues and profits with a lot less, that's great.

61
00:02:55,360 --> 00:02:57,720
Speaker 1: But what does that mean for the economy If a

62
00:02:57,760 --> 00:02:59,799
Speaker 1: company can look at their workforce and say we can

63
00:02:59,800 --> 00:03:01,720
Speaker 1: get rid of forty percent of y'all at some point

64
00:03:02,280 --> 00:03:04,480
Speaker 1: this is like, isn't this the AI gloom and doom

65
00:03:04,720 --> 00:03:06,359
Speaker 1: that we all were all kind of dismissing a few

66
00:03:06,400 --> 00:03:08,440
Speaker 1: months ago with regards to you know, how it's just

67
00:03:08,480 --> 00:03:10,160
Speaker 1: going to kill all the jobs? And then what I mean,

68
00:03:10,200 --> 00:03:12,120
Speaker 1: who's going to be left to buy these services? If

69
00:03:12,120 --> 00:03:12,760
Speaker 1: nobody has.

70
00:03:12,600 --> 00:03:15,440
Speaker 4: Exactly who uses Square? If nobody has any money?

71
00:03:15,560 --> 00:03:16,720
Speaker 1: Yeah, spend thank you, Ted.

72
00:03:17,040 --> 00:03:21,720
Speaker 3: What if it's just over hiring, you know, just trying

73
00:03:21,760 --> 00:03:24,760
Speaker 3: to co cost mister Dorsey, who some have questioned before

74
00:03:24,800 --> 00:03:26,200
Speaker 3: in terms of his management.

75
00:03:26,320 --> 00:03:28,760
Speaker 5: That's what I'm saying, though, Carol, if you're own conspiracy

76
00:03:28,840 --> 00:03:30,679
Speaker 5: theory a little bit adjacent. I mean, you're talking about

77
00:03:30,680 --> 00:03:32,760
Speaker 5: a stock that's down how much from a twenty twenty

78
00:03:32,800 --> 00:03:35,360
Speaker 5: one peek? Can you continue to expand headcount? It's easy

79
00:03:35,400 --> 00:03:37,360
Speaker 5: to say, oh, well we're going to be more efficient. Okay,

80
00:03:37,400 --> 00:03:39,360
Speaker 5: look in the mirror. Maybe you over hired by I

81
00:03:39,400 --> 00:03:41,280
Speaker 5: don't know sixty percent.

82
00:03:41,880 --> 00:03:43,840
Speaker 3: You can come on anytime.

83
00:03:43,720 --> 00:03:44,800
Speaker 1: That still lost jobs.

84
00:03:44,920 --> 00:03:46,840
Speaker 4: I will say he did. He did address taking from.

85
00:03:46,720 --> 00:03:48,640
Speaker 1: The economy, right, but where are those people going?

86
00:03:48,720 --> 00:03:52,040
Speaker 3: But is it indicative of AI and what it's going

87
00:03:52,040 --> 00:03:54,520
Speaker 3: to do in the future. I don't know, we don't know,

88
00:03:54,600 --> 00:03:58,160
Speaker 3: or is this a very block specific Jack Dorsey story.

89
00:03:58,760 --> 00:03:59,080
Speaker 3: I don't know.

90
00:03:59,120 --> 00:04:01,600
Speaker 4: We'll tell you in eighteen. I think that's what happens.

91
00:04:01,680 --> 00:04:03,160
Speaker 3: Yeah, what did our team say that you get to

92
00:04:03,200 --> 00:04:05,680
Speaker 3: watch in terms of some of the business expansions and

93
00:04:05,680 --> 00:04:08,040
Speaker 3: things that's done, whether or not we see the growth

94
00:04:08,040 --> 00:04:12,720
Speaker 3: in those areas. If you don't, then maybe maybe it

95
00:04:12,800 --> 00:04:14,320
Speaker 3: isn't just AI helping out here.

96
00:04:14,560 --> 00:04:16,960
Speaker 4: Okay, the jury is still out on that, but the

97
00:04:17,000 --> 00:04:19,760
Speaker 4: conspiracy theories live on. Let's get to some of the

98
00:04:19,760 --> 00:04:22,040
Speaker 4: decliners on the day today. Do you want to start

99
00:04:22,040 --> 00:04:24,880
Speaker 4: with the banks? Look at this the KBW Bank Index

100
00:04:24,920 --> 00:04:28,520
Speaker 4: falling close to five percent, financial firms grappling with signs

101
00:04:28,520 --> 00:04:30,920
Speaker 4: that private credit issues are starting to emerge following a

102
00:04:30,960 --> 00:04:34,400
Speaker 4: series of blows from the threat of AI. The KBW

103
00:04:34,480 --> 00:04:36,720
Speaker 4: Bank Index earlier in the day fell as much as

104
00:04:36,920 --> 00:04:40,800
Speaker 4: six percent, all twenty three members sliding. To end the day,

105
00:04:40,960 --> 00:04:44,560
Speaker 4: you have Goldman Sachs down seven point five percent, Morgan

106
00:04:44,600 --> 00:04:48,039
Speaker 4: Stanley down six point one percent, Capital One down six percent,

107
00:04:48,120 --> 00:04:52,360
Speaker 4: JP Morgan down one point nine percent, every member in

108
00:04:52,400 --> 00:04:55,360
Speaker 4: the red today. Credit spreads also started widening. Wall Street

109
00:04:55,360 --> 00:04:57,720
Speaker 4: back UK mortgage lender collapsed, adding to fear that banks

110
00:04:57,720 --> 00:05:01,279
Speaker 4: could face rising defaults in the opaque world of a private.

111
00:05:01,160 --> 00:05:03,279
Speaker 1: And you saw the great story that we had about

112
00:05:03,279 --> 00:05:06,200
Speaker 1: that letter that was circulating around Goldman Sacks asset management.

113
00:05:06,240 --> 00:05:09,120
Speaker 1: The idea here that basically, you know, trying to reassure

114
00:05:09,160 --> 00:05:12,480
Speaker 1: clients that what's happening right now, redemption rate, software exposure

115
00:05:12,520 --> 00:05:14,880
Speaker 1: still relatively low and contained.

116
00:05:15,040 --> 00:05:16,600
Speaker 4: Yeah, we're going to be doing a deep dive. And

117
00:05:16,680 --> 00:05:18,480
Speaker 4: I'm a little more on Blue Houl in a minute.

118
00:05:18,480 --> 00:05:22,120
Speaker 4: Both James Crombie who edits credit Jenitor for credit in

119
00:05:22,200 --> 00:05:24,039
Speaker 4: just a few minutes. So if you guys want to

120
00:05:24,040 --> 00:05:26,600
Speaker 4: come over and join that conversation.

121
00:05:26,120 --> 00:05:27,440
Speaker 3: Well Bailey can come here.

122
00:05:28,120 --> 00:05:31,160
Speaker 4: Wow, thank you. Let's look at what happened to in

123
00:05:31,240 --> 00:05:34,800
Speaker 4: video after yesterday's route post earnings on Wednesday, shares some

124
00:05:34,880 --> 00:05:38,320
Speaker 4: Video today fell another four percent, this after a five

125
00:05:38,360 --> 00:05:41,160
Speaker 4: point five percent decline, adding to the sell off. Today,

126
00:05:41,880 --> 00:05:44,919
Speaker 4: the stock priced at less than twenty two times forward earnings,

127
00:05:44,960 --> 00:05:47,800
Speaker 4: well below its five year average of thirty seven. Basically

128
00:05:47,839 --> 00:05:50,040
Speaker 4: even with the S and P five hundred, it's multiple.

129
00:05:50,120 --> 00:05:52,160
Speaker 4: So some people, at least according to that valuation, are

130
00:05:52,160 --> 00:05:56,240
Speaker 4: seeing this. Dare I say as of value right now,

131
00:05:56,400 --> 00:05:58,640
Speaker 4: Investors are concerned that the hundreds of billions of dollars

132
00:05:58,680 --> 00:06:01,000
Speaker 4: in spending pledged by AI developers will have to be

133
00:06:01,040 --> 00:06:04,560
Speaker 4: scaled back, which would likely hit Nvidia's revenue heart. And finally,

134
00:06:04,720 --> 00:06:07,159
Speaker 4: Blue Owl to finish out just a tough month for

135
00:06:07,200 --> 00:06:09,960
Speaker 4: the company, shares on track for their biggest monthly decline

136
00:06:10,000 --> 00:06:13,400
Speaker 4: in nearly four years. Shares fell today by six percent

137
00:06:13,520 --> 00:06:17,479
Speaker 4: Anxiety turbulence over the private credit industry. Concerns over the

138
00:06:17,480 --> 00:06:19,919
Speaker 4: industry have mounted after Blue Owl halted redemptions in one

139
00:06:19,960 --> 00:06:23,320
Speaker 4: of its funds and decided to sell some assets Telpay investors.

140
00:06:23,320 --> 00:06:25,960
Speaker 4: That spark to drop in the firm's market value. Bluell

141
00:06:26,040 --> 00:06:27,680
Speaker 4: shares down by six percent today.

142
00:06:27,760 --> 00:06:30,080
Speaker 1: I'm so fascinated by this story, and I'm fascinated by

143
00:06:30,120 --> 00:06:32,120
Speaker 1: just how much all these other names are getting dragged down,

144
00:06:32,160 --> 00:06:34,919
Speaker 1: like Goldman and KKR and Apollo and others. And they

145
00:06:34,960 --> 00:06:36,760
Speaker 1: gets see the idea too. It's not even so much

146
00:06:36,800 --> 00:06:39,839
Speaker 1: whether there truly is a crack going on underneath the surface.

147
00:06:39,880 --> 00:06:42,120
Speaker 1: It's out the idea of transparency. And some of these

148
00:06:42,120 --> 00:06:44,360
Speaker 1: companies are more important their CEOs. They need to get

149
00:06:44,400 --> 00:06:46,960
Speaker 1: out there and start talking about this, assuming that there

150
00:06:47,040 --> 00:06:49,400
Speaker 1: is nothing to hide there, I do want to quickly

151
00:06:49,400 --> 00:06:51,719
Speaker 1: they'll point out what we saw in the moving yields,

152
00:06:51,760 --> 00:06:53,680
Speaker 1: because there was a bit of a flight to safety,

153
00:06:53,720 --> 00:06:55,840
Speaker 1: not only here on this day, but quite frankly for

154
00:06:55,960 --> 00:06:58,320
Speaker 1: the month as well. I mean, you take a look

155
00:06:58,360 --> 00:06:59,960
Speaker 1: at that drop in yields. Of fact, this is actually

156
00:06:59,960 --> 00:07:02,520
Speaker 1: the best month for treasuries on a price basis in

157
00:07:02,640 --> 00:07:05,560
Speaker 1: about a year. TLT up four percent. That's the main

158
00:07:05,560 --> 00:07:08,200
Speaker 1: etf that tracks long dated bonds. Four percent gain right

159
00:07:08,200 --> 00:07:10,880
Speaker 1: now for the month of February, and that's pretty much

160
00:07:10,960 --> 00:07:12,880
Speaker 1: the gains for the years. That gives you a sense

161
00:07:12,880 --> 00:07:15,360
Speaker 1: of just how much things have flipped and sentiment in

162
00:07:15,400 --> 00:07:16,080
Speaker 1: the past month.

163
00:07:17,200 --> 00:07:21,240
Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with

164
00:07:21,320 --> 00:07:23,880
Speaker 2: us throughout the day for the latest roundup of companies

165
00:07:23,960 --> 00:07:27,080
Speaker 2: making news on Wall Street and for the latest market

166
00:07:27,080 --> 00:07:31,560
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

167
00:07:31,640 --> 00:07:35,160
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with

168
00:07:35,240 --> 00:07:36,720
Speaker 2: the Bloomberg Business app.