Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg data.
Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Nathan Hager, joined by Bloomberg's a Beer abu Omar.
Speaker 1: On another positive morning for the market broadly, but you're
Speaker 1: starting us off with some downers on earnings.
Speaker 2: A beer.
Speaker 1: What happened with cloud Flair?
Speaker 3: Good morning, Yeah, good morning, Nathan. So you're right. I mean,
Speaker 3: the broader picture is still positive when it comes to
Speaker 3: overall market performance and what is happening on earnings, but
Speaker 3: it's not a good day for software. So cloud Flair
Speaker 3: is now dropping over seventeen percent in the pre trade.
Speaker 3: And this is again an earning story. It is forecasting
Speaker 3: revenue for the second quarter where the guidance is missing
Speaker 3: average analyst estimate. So it's seeing revenue at around sixty
Speaker 3: sixty four million to sixty five now the estimate is
Speaker 3: just a little bit north of that. It's seeing some
Speaker 3: charges as well that are at about one hundred and
Speaker 3: forty million to about one hundred and fifty million. But
Speaker 3: perhaps what was really interesting here is something that we're
Speaker 3: seeing happening to a lot of these stech companies. So
Speaker 3: cloud Flare is planning on cutting more than eleven hundred
Speaker 3: jobs globally, that is about a fifth of its workforce. Now.
Speaker 3: The CEO, Matthew Prince, put out a letter where he
Speaker 3: said that the usage of AI has increased by more
Speaker 3: than six hundred percent in the last three months alone,
Speaker 3: and that is one of those reasons that led to
Speaker 3: the layoffs that we're going to be seeing. So not
Speaker 3: a great day again, falling over seventeen percent at this point.
Speaker 1: So is that a similar story that we're hearing from
Speaker 1: core Weave and other software company that reported earnings and
Speaker 1: is now dropping in the early trade.
Speaker 3: Yeah, pretty much. I mean it is dropping over six
Speaker 3: percent now. Now. One thing that core Weave differs from
Speaker 3: a cloud Flare from is that its revenue is actually
Speaker 3: not missing that much. So it is it has reported
Speaker 3: revenue that is north of two billion versus nine hundred
Speaker 3: and eighty two million on an annual basis. The estimate
Speaker 3: was just a little bit under two billion dollars. But
Speaker 3: essentially it is giving a disappointing forecast for the current quarter,
Speaker 3: and this is sparking these wider concerns about slowing growth,
Speaker 3: especially at a time when the company is spending quite
Speaker 3: heavily to bolster its ongoing operations. So it is forecasting
Speaker 3: that revenue for the second quarter will range, as I mentioned,
Speaker 3: from two point four or five around two point five
Speaker 3: billion to two point six billion dollars. That's what they
Speaker 3: said during the earnings called that we heard on Thursday.
Speaker 1: All right, well that's some of the downside. Let's turn
Speaker 1: to the positivity on this Friday. One of the biggest
Speaker 1: gainers this morning is Iron What's going on with them?
Speaker 3: Yeah, so look Iron, I mean that the news there
Speaker 3: is this deal within video right, and Vidia said it
Speaker 3: was investing as much as two point one billion dollars
Speaker 3: in this data center developer, quite a big theme this year.
Speaker 3: So it is gaining over eight percent in the pre
Speaker 3: trade market. And this is part of a broader partnership
Speaker 3: that we're seeing between the two companies, and it's aimed
Speaker 3: at bolstering or accelerating the construction of AI infrastructure. Now,
Speaker 3: Iron has agreed to issue in VideA a five year
Speaker 3: right to purchase as many as thirty million shares, and
Speaker 3: that is at an exercise price of seventy dollars. It
Speaker 3: is also expected to announce a three point four billion
Speaker 3: dollar AI cloud contract within video, so both companies reacting
Speaker 3: quite well when it comes to this news, Iron gaining
Speaker 3: as much as eight percent in the pre trade, VideA
Speaker 3: not doing as well. It's up nearly eight percent this morning.
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