WEBVTT - CoreWeave Soars, Sonos Rises, Six Flags Jumps

0:00:02.529 --> 0:00:04.210
<v Speaker 1>Bloomberg Audio Studios.

0:00:04.670 --> 0:00:06.210
<v Speaker 2>Podcasts. Radio.

0:00:06.650 --> 0:00:07.050
<v Speaker 3>News.

0:00:08.530 --> 0:00:12.410
<v Speaker 2>The Stock Movers Report. Your roundup of companies making moves

0:00:12.490 --> 0:00:15.860
<v Speaker 2>in the stock market. Harnessing the power of Bloomberg data.

0:00:16.940 --> 0:00:19.220
<v Speaker 4>I'm Carol Messer along with Tim Stenevik. Let's get though

0:00:19.300 --> 0:00:22.160
<v Speaker 4>to some stocks on the move on this Wednesday. Bloomberg

0:00:22.200 --> 0:00:24.550
<v Speaker 4>News cross-asset reporter Denise Isakova is with us.

0:00:25.070 --> 0:00:26.530
<v Speaker 2>We got to talk about Corweave, man.

0:00:26.770 --> 0:00:28.230
<v Speaker 4>Outperformance in a big way.

0:00:28.580 --> 0:00:31.380
<v Speaker 5>The mood in the AI world has changed, and CoreWave

0:00:31.420 --> 0:00:34.500
<v Speaker 5>is leading the way. Shares are soaring. They jumped as

0:00:34.540 --> 0:00:37.839
<v Speaker 5>much as 27% today. Really great news for the AI trade,

0:00:37.880 --> 0:00:40.990
<v Speaker 5>which obviously had a pretty rough stretch. The ticker, of course,

0:00:41.070 --> 0:00:44.890
<v Speaker 5>is CRWV. There were a lot of fears about the

0:00:44.950 --> 0:00:48.620
<v Speaker 5>dead loss, but what we're hearing is some good sales

0:00:48.659 --> 0:00:49.660
<v Speaker 5>growth estimates.

0:00:49.780 --> 0:00:50.360
<v Speaker 3>The number.

0:00:51.000 --> 0:00:54.860
<v Speaker 5>that analysts are really excited about is projected revenue of

0:00:54.860 --> 0:00:57.200
<v Speaker 5>$ 13 billion to $ 13.

0:00:56.640 --> 0:00:57.280
<v Speaker 3>3 billion.

0:00:57.640 --> 0:01:00.600
<v Speaker 5>This blew past estimates of Wall Street was expecting and

0:01:00.660 --> 0:01:04.520
<v Speaker 5>clearly is lifting sentiment. The NASDAQ is up nearly 3% today. Obviously,

0:01:04.540 --> 0:01:07.860
<v Speaker 5>it's been a pretty rough stretch, but I think the

0:01:07.970 --> 0:01:11.210
<v Speaker 5>outlook for neoclouds, what we're seeing from CoreWave, is really

0:01:11.330 --> 0:01:14.790
<v Speaker 5>helping shift that sentiment. Of course, the big question is

0:01:14.870 --> 0:01:17.610
<v Speaker 5>whether those good results can help ease anxiety around the

0:01:17.770 --> 0:01:21.809
<v Speaker 5>long-term sustainability of this. Because we have ups and downs,

0:01:21.850 --> 0:01:23.380
<v Speaker 5>but the big questions remain.

0:01:23.450 --> 0:01:25.459
<v Speaker 3>And we see what's happening in the CDS market.

0:01:25.700 --> 0:01:26.820
<v Speaker 4>It's good for today.

0:01:27.000 --> 0:01:29.119
<v Speaker 3>Today is a good day. That's what we know.

0:01:29.160 --> 0:01:30.880
<v Speaker 1>Yeah, the credit default swaps market, right?

0:01:30.940 --> 0:01:33.740
<v Speaker 3>For sure. There has been a lot of anxiety around it.

0:01:33.780 --> 0:01:37.170
<v Speaker 6>But just zoom out on this company. From last year's highs,

0:01:37.190 --> 0:01:40.229
<v Speaker 6>it's still down more than 60%. Even with today's more

0:01:40.270 --> 0:01:43.250
<v Speaker 6>than 25% increase, it's kind of like the long-term chart.

0:01:43.330 --> 0:01:44.300
<v Speaker 1>It's a drop in the bucket.

0:01:44.520 --> 0:01:45.200
<v Speaker 3>It's been very volatile.

0:01:45.220 --> 0:01:45.959
<v Speaker 1>It's got a long way to go.

0:01:46.020 --> 0:01:46.259
<v Speaker 4>Yeah.

0:01:47.020 --> 0:01:49.540
<v Speaker 5>It was down 32% before this. And as you said,

0:01:49.560 --> 0:01:53.220
<v Speaker 5>it's been a pretty rough trajectory. But nevertheless, it helps sentiment.

0:01:53.320 --> 0:01:54.780
<v Speaker 5>And that's all we need for the AI trade.

0:01:55.420 --> 0:01:58.660
<v Speaker 4>We're such an easy crowd. All right, let's go on

0:01:58.680 --> 0:02:02.660
<v Speaker 4>over to Sonos. This one reported earnings after the close yesterday.

0:02:02.820 --> 0:02:05.660
<v Speaker 3>Yeah, and that's also somewhat of an AI story, right?

0:02:05.740 --> 0:02:06.340
<v Speaker 3>Everything is.

0:02:06.760 --> 0:02:10.340
<v Speaker 5>Sonos shares are up 11%. The audio equipment company results

0:02:10.400 --> 0:02:13.910
<v Speaker 5>showed strong growth. The interesting thing we're seeing is they're

0:02:13.940 --> 0:02:18.010
<v Speaker 5>getting more into those assistants. So they have their in-house

0:02:18.370 --> 0:02:22.780
<v Speaker 5>AI voice assistants, and now they're connecting it to meta's

0:02:22.840 --> 0:02:25.760
<v Speaker 5>muse so it's it's getting very meta you can use

0:02:25.810 --> 0:02:29.470
<v Speaker 5>your music uh to connect to meta and ask them

0:02:29.510 --> 0:02:31.829
<v Speaker 5>to do decisions not in my house yeah not in

0:02:31.850 --> 0:02:34.310
<v Speaker 5>my house you're are you a sonos home we're a sonos.

0:02:34.150 --> 0:02:36.019
<v Speaker 4>Home i'm a sonos yeah but i'm not going to

0:02:36.040 --> 0:02:37.340
<v Speaker 4>be connecting it to nothing.

0:02:37.260 --> 0:02:39.800
<v Speaker 6>No i just want to listen to bloomberg radio in

0:02:39.820 --> 0:02:43.359
<v Speaker 6>the morning and have it be easy in my app okay.

0:02:43.000 --> 0:02:45.090
<v Speaker 3>Yep They have hardware devices, too.

0:02:45.130 --> 0:02:48.330
<v Speaker 6>They have fixed, to be fair, Tom Conrad has come

0:02:48.350 --> 0:02:51.210
<v Speaker 6>in and fixed the app. He was brought in to

0:02:51.290 --> 0:02:53.330
<v Speaker 6>fix this company and the software problems.

0:02:53.830 --> 0:02:54.609
<v Speaker 1>He's done that.

0:02:54.950 --> 0:02:59.510
<v Speaker 5>And the fiscal four-quarter results are showing that $ 350 million

0:02:59.550 --> 0:03:01.430
<v Speaker 5>in revenue, nearly a 20% increase.

0:03:01.750 --> 0:03:05.340
<v Speaker 3>So the numbers are going well. They're in the AI trend,

0:03:05.470 --> 0:03:07.559
<v Speaker 3>whether you like it or not. So a good day

0:03:07.600 --> 0:03:08.140
<v Speaker 3>for the company.

0:03:08.440 --> 0:03:10.880
<v Speaker 4>I feel like they were also a darling during the pandemic, right?

0:03:10.940 --> 0:03:12.919
<v Speaker 1>Yeah, but different world then.

0:03:12.940 --> 0:03:14.990
<v Speaker 3>I mean, for different reasons.

0:03:15.150 --> 0:03:17.390
<v Speaker 4>Yeah. Yeah. It was a different world.

0:03:17.490 --> 0:03:17.750
<v Speaker 5>Yeah.

0:03:17.830 --> 0:03:20.870
<v Speaker 1>And the former CEO was essentially forced to leave over

0:03:20.910 --> 0:03:23.510
<v Speaker 1>some of the challenges with the software. We used to

0:03:23.530 --> 0:03:25.230
<v Speaker 1>talk to him a lot. Yeah. We don't talk.

0:03:25.250 --> 0:03:25.389
<v Speaker 5>Yeah.

0:03:26.110 --> 0:03:27.590
<v Speaker 4>They don't call us anymore.

0:03:27.650 --> 0:03:29.530
<v Speaker 1>They're too busy. They're in Santa Barbara. They're out surfing

0:03:29.550 --> 0:03:30.630
<v Speaker 1>during lunch. That's what they do.

0:03:30.790 --> 0:03:32.510
<v Speaker 3>They're up 11% today. They're busy.

0:03:32.630 --> 0:03:33.510
<v Speaker 4>They can pop on a Zoom.

0:03:33.850 --> 0:03:35.530
<v Speaker 2>All right, let's go to Six Flags.

0:03:35.650 --> 0:03:36.230
<v Speaker 3>Six Flags.

0:03:36.550 --> 0:03:40.370
<v Speaker 5>My favorite ticket. The ticket is fun. Six Flags Entertainment

0:03:40.410 --> 0:03:44.590
<v Speaker 5>shares rose as much as 11%. We're seeing insider trading,

0:03:44.680 --> 0:03:49.780
<v Speaker 5>insider buying, not trading transactions. We're seeing director Rihanna Jaffer,

0:03:49.900 --> 0:03:52.980
<v Speaker 5>and we're seeing Six Flags chairman buying a lot of shares,

0:03:53.000 --> 0:03:56.260
<v Speaker 5>and that's helping sentiment. Of course, we're talking about companies

0:03:56.280 --> 0:03:59.400
<v Speaker 5>that have been under a lot of pressure. That's definitely

0:03:59.480 --> 0:04:03.320
<v Speaker 5>one that has suffered a lot this year. The company

0:04:03.340 --> 0:04:06.670
<v Speaker 5>is down already to 27% despite.

0:04:06.210 --> 0:04:07.010
<v Speaker 3>This big gain.

0:04:07.610 --> 0:04:10.590
<v Speaker 5>But nevertheless, it's helping the company had a pretty strong

0:04:10.630 --> 0:04:13.870
<v Speaker 5>third quarter results that came on Thursday. I mean, it

0:04:13.910 --> 0:04:17.739
<v Speaker 5>was strong enough. So a lot of the sale was

0:04:17.770 --> 0:04:21.400
<v Speaker 5>based on weak attendance, disappointing earnings. So we're seeing a

0:04:21.460 --> 0:04:24.880
<v Speaker 5>little bit of turnaround. That said, there have been a

0:04:24.900 --> 0:04:28.080
<v Speaker 5>lot of incidents, lawsuits. So it's a very complicated stock.

0:04:28.230 --> 0:04:30.450
<v Speaker 5>But as we see, when there is a relatively good day,

0:04:30.589 --> 0:04:31.150
<v Speaker 5>the jump on.

0:04:31.110 --> 0:04:34.230
<v Speaker 3>The upside is pretty good. But the downside has also

0:04:34.250 --> 0:04:35.490
<v Speaker 3>been pretty, pretty down.

0:04:37.990 --> 0:04:42.029
<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

0:04:42.110 --> 0:04:44.630
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:44.730 --> 0:04:48.680
<v Speaker 2>making news on Wall Street. And for the latest market-moving headlines,

0:04:48.980 --> 0:04:53.500
<v Speaker 2>listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com,

0:04:53.700 --> 0:04:56.680
<v Speaker 2>and on Apple CarPlay and Android Auto with the Bloomberg

0:04:56.720 --> 0:04:57.359
<v Speaker 2>Business app.