Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: This is the closing bell on the stock movers report
Speaker 2: the company's making moves at the close of US trading
Speaker 2: with Carol Masser, Tim Stenovak, Romain Bostik, and Katie Greifel.
Speaker 3: All right, so let's get to some of the individual gainers,
Speaker 3: if I may. Let's go to Paramount Skydance and Netflix.
Speaker 3: Definitely some outperformance. Paramount Skuyddance up almost twenty one percent
Speaker 3: guys today, and you have Netflix up about fourteen percent.
Speaker 3: Here we know Paramount clinching that deal finally for Warner
Speaker 3: Brothers Discovery out maneuvering Netflix after a month's long battle
Speaker 3: by Green to pay one hundred and eleven billion for
Speaker 3: the legendary Hollywood studio. We should point out them renovering. Well,
Speaker 3: here's the deal. We could have a lot of conversations
Speaker 3: because Tim and I have talked about maybe Netflix was
Speaker 3: just really smart host.
Speaker 4: Prize scholars that they didn't have yesterday.
Speaker 3: Yeah, Netflix, right, they had, right.
Speaker 1: But that's also interesting too because I mean, we didn't
Speaker 1: really talk about this happened while we were on air,
Speaker 1: because Ted Sarandos was at the White House and he
Speaker 1: did come out of the White House. Reporters asked him
Speaker 1: what happened? You like, I'm not doing any media, And then,
Speaker 1: of course a few minutes later we got the headlines
Speaker 1: that they were moving on. But there's been a lot
Speaker 1: of speculation here about what Paramount is pain, whether it's
Speaker 1: too much, whether and a lot of jokes online saying
Speaker 1: the hey, maybe if Sarando's just waits a couple of years,
Speaker 1: he can actually maybe buy some of those assets at
Speaker 1: a fire sale when a Paramount, you know, maybe if
Speaker 1: Paramount doesn't execute on that.
Speaker 3: Yeah, let's be conspiracy theorist for a moment. What if
Speaker 3: Netflix was all about just pushing up the price and
Speaker 3: increasing the cost of this deal and like the.
Speaker 1: Cut of your jib there increasing the day. Where's your
Speaker 1: tinfoil hat? Is that down there on the balancee?
Speaker 2: I mean, come on, like, I don't know.
Speaker 5: All right, we're moving along.
Speaker 3: It's been a great saga to watch. But anyway, Paramount
Speaker 3: and Netflix definitely outperforming in today's session. Let's go on
Speaker 3: over to Dell, number one gainer in the S and
Speaker 3: P five hundred, jumping by the most in two years,
Speaker 3: stock up about twenty one almost twenty two percent today,
Speaker 3: pretty much finishing at its highs of the session. This
Speaker 3: is after the company gave an outlook for sales of
Speaker 3: its artificial intelligence servers that exceeded estimates. Definitely a sign
Speaker 3: of our best demand for machines helping fuel the AI
Speaker 3: data center build that company, by the way, saying it
Speaker 3: will generate about fifty billion dollars in AI server revenue
Speaker 3: in the current fiscal year which ends in January of
Speaker 3: twenty twenty seven, and investors liking what they heard from
Speaker 3: that company. And then I got to mention Block take
Speaker 3: our xyz this one finishing up just shy of seventeen
Speaker 3: percent here, up the most in about two years, at
Speaker 3: least intra day after the company center was reducing its
Speaker 3: workforce by nearly half in a bet on AI.
Speaker 1: Yes, mister boss, Oh no, but this is important before
Speaker 1: we move to Tim's decliners here, because I mean, obviously,
Speaker 1: if Block does pull this off, the idea that they
Speaker 1: have these efficiencies and are able to continue generating the
Speaker 1: same revenues and profits with a lot less, that's great.
Speaker 1: But what does that mean for the economy If a
Speaker 1: company can look at their workforce and say we can
Speaker 1: get rid of forty percent of y'all at some point
Speaker 1: this is like, isn't this the AI gloom and doom
Speaker 1: that we all were all kind of dismissing a few
Speaker 1: months ago with regards to you know, how it's just
Speaker 1: going to kill all the jobs? And then what I mean,
Speaker 1: who's going to be left to buy these services? If
Speaker 1: nobody has.
Speaker 4: Exactly who uses Square? If nobody has any money?
Speaker 1: Yeah, spend thank you, Ted.
Speaker 3: What if it's just over hiring, you know, just trying
Speaker 3: to co cost mister Dorsey, who some have questioned before
Speaker 3: in terms of his management.
Speaker 5: That's what I'm saying, though, Carol, if you're own conspiracy
Speaker 5: theory a little bit adjacent. I mean, you're talking about
Speaker 5: a stock that's down how much from a twenty twenty
Speaker 5: one peek? Can you continue to expand headcount? It's easy
Speaker 5: to say, oh, well we're going to be more efficient. Okay,
Speaker 5: look in the mirror. Maybe you over hired by I
Speaker 5: don't know sixty percent.
Speaker 3: You can come on anytime.
Speaker 1: That still lost jobs.
Speaker 4: I will say he did. He did address taking from.
Speaker 1: The economy, right, but where are those people going?
Speaker 3: But is it indicative of AI and what it's going
Speaker 3: to do in the future. I don't know, we don't know,
Speaker 3: or is this a very block specific Jack Dorsey story.
Speaker 3: I don't know.
Speaker 4: We'll tell you in eighteen. I think that's what happens.
Speaker 3: Yeah, what did our team say that you get to
Speaker 3: watch in terms of some of the business expansions and
Speaker 3: things that's done, whether or not we see the growth
Speaker 3: in those areas. If you don't, then maybe maybe it
Speaker 3: isn't just AI helping out here.
Speaker 4: Okay, the jury is still out on that, but the
Speaker 4: conspiracy theories live on. Let's get to some of the
Speaker 4: decliners on the day today. Do you want to start
Speaker 4: with the banks? Look at this the KBW Bank Index
Speaker 4: falling close to five percent, financial firms grappling with signs
Speaker 4: that private credit issues are starting to emerge following a
Speaker 4: series of blows from the threat of AI. The KBW
Speaker 4: Bank Index earlier in the day fell as much as
Speaker 4: six percent, all twenty three members sliding. To end the day,
Speaker 4: you have Goldman Sachs down seven point five percent, Morgan
Speaker 4: Stanley down six point one percent, Capital One down six percent,
Speaker 4: JP Morgan down one point nine percent, every member in
Speaker 4: the red today. Credit spreads also started widening. Wall Street
Speaker 4: back UK mortgage lender collapsed, adding to fear that banks
Speaker 4: could face rising defaults in the opaque world of a private.
Speaker 1: And you saw the great story that we had about
Speaker 1: that letter that was circulating around Goldman Sacks asset management.
Speaker 1: The idea here that basically, you know, trying to reassure
Speaker 1: clients that what's happening right now, redemption rate, software exposure
Speaker 1: still relatively low and contained.
Speaker 4: Yeah, we're going to be doing a deep dive. And
Speaker 4: I'm a little more on Blue Houl in a minute.
Speaker 4: Both James Crombie who edits credit Jenitor for credit in
Speaker 4: just a few minutes. So if you guys want to
Speaker 4: come over and join that conversation.
Speaker 3: Well Bailey can come here.
Speaker 4: Wow, thank you. Let's look at what happened to in
Speaker 4: video after yesterday's route post earnings on Wednesday, shares some
Speaker 4: Video today fell another four percent, this after a five
Speaker 4: point five percent decline, adding to the sell off. Today,
Speaker 4: the stock priced at less than twenty two times forward earnings,
Speaker 4: well below its five year average of thirty seven. Basically
Speaker 4: even with the S and P five hundred, it's multiple.
Speaker 4: So some people, at least according to that valuation, are
Speaker 4: seeing this. Dare I say as of value right now,
Speaker 4: Investors are concerned that the hundreds of billions of dollars
Speaker 4: in spending pledged by AI developers will have to be
Speaker 4: scaled back, which would likely hit Nvidia's revenue heart. And finally,
Speaker 4: Blue Owl to finish out just a tough month for
Speaker 4: the company, shares on track for their biggest monthly decline
Speaker 4: in nearly four years. Shares fell today by six percent
Speaker 4: Anxiety turbulence over the private credit industry. Concerns over the
Speaker 4: industry have mounted after Blue Owl halted redemptions in one
Speaker 4: of its funds and decided to sell some assets Telpay investors.
Speaker 4: That spark to drop in the firm's market value. Bluell
Speaker 4: shares down by six percent today.
Speaker 1: I'm so fascinated by this story, and I'm fascinated by
Speaker 1: just how much all these other names are getting dragged down,
Speaker 1: like Goldman and KKR and Apollo and others. And they
Speaker 1: gets see the idea too. It's not even so much
Speaker 1: whether there truly is a crack going on underneath the surface.
Speaker 1: It's out the idea of transparency. And some of these
Speaker 1: companies are more important their CEOs. They need to get
Speaker 1: out there and start talking about this, assuming that there
Speaker 1: is nothing to hide there, I do want to quickly
Speaker 1: they'll point out what we saw in the moving yields,
Speaker 1: because there was a bit of a flight to safety,
Speaker 1: not only here on this day, but quite frankly for
Speaker 1: the month as well. I mean, you take a look
Speaker 1: at that drop in yields. Of fact, this is actually
Speaker 1: the best month for treasuries on a price basis in
Speaker 1: about a year. TLT up four percent. That's the main
Speaker 1: etf that tracks long dated bonds. Four percent gain right
Speaker 1: now for the month of February, and that's pretty much
Speaker 1: the gains for the years. That gives you a sense
Speaker 1: of just how much things have flipped and sentiment in
Speaker 1: the past month.
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