WEBVTT - Microsoft Drops, Home Depot Falls, Honeywell Sinks on Ratings Downgrade

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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 take a look at some of the stocks on

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<v Speaker 1>the move today. I'm Paul swinging alongside Scarlett.

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<v Speaker 2>Foom were joined by Bloomberg's They need to sup, they

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<v Speaker 2>need to What are you looking at today?

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<v Speaker 1>Let's start with Microsoft and Amazon. We just have headlines

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<v Speaker 1>of Microsoft investing up to five billion in Entropick. But

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<v Speaker 1>then what we're looking at is a big downgrade, a

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<v Speaker 1>rare downgrade. So Redburn is cutting their ratings for both

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<v Speaker 1>Amazon and Microsoft to neutral previously by and this is

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<v Speaker 1>the first time it happened since they initiated coverage in

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<v Speaker 1>twenty twenty two. This is very rare, like those companies

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<v Speaker 1>have pretty much ninety percent postiver rating. There are no sales,

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<v Speaker 1>no sale ratings, and very rare to get even neutral.

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<v Speaker 1>The issue is the book case regenerative AI is no

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<v Speaker 1>longer clear and hyperscare should be approached. This is what

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<v Speaker 1>Redburn says. The criticism is pretty harsh. They say industry

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<v Speaker 1>gen AI narrative looked increasingly misplaced in twenty three until

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<v Speaker 1>they initiated the coverage Framazon and Microsoft. They had a virating.

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<v Speaker 1>The same analysts recently had a sele rating on Oracle,

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<v Speaker 1>and obviously that was correct. The company is down about

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<v Speaker 1>twenty five percent since that. We see the self of today. Obviously,

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<v Speaker 1>textocs are dragging the industries down. The NASA has raised

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<v Speaker 1>around one point eight trillion of values since October peak,

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<v Speaker 1>and obviously those fears are continuing to rise. And for

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<v Speaker 1>the last few weeks we've seen a lot of pressure

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<v Speaker 1>on those AI darlings and favorites that brought in the

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<v Speaker 1>system for three years.

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<v Speaker 2>Okay, let's steer away from technology and go towards home Depot.

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<v Speaker 1>Yeah, everyone I was worried about consumer and Home Depot

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<v Speaker 1>is giving a pretty bleak forecast there. The ticker, of

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<v Speaker 1>course is HD. The stock is down more than three percent.

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<v Speaker 1>The company cut its full ear earnings guiding guidance. They're

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<v Speaker 1>warning that unsteady consumers are hitting the polls on big

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<v Speaker 1>home purchases. The retailer said it expected just as earning

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<v Speaker 1>per shares to decline five percent from year ago. The

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<v Speaker 1>company said it's profit and comparable sales came in lower

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<v Speaker 1>then expected. The stock is already down here today eleven percent.

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<v Speaker 1>It's been really hard. Obviously, the housing market has been frozen.

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<v Speaker 1>Add to that tariffs and additional challeges for home depot.

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<v Speaker 1>They have seen some of the metrics doing well. They've

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<v Speaker 1>been trying to grow operation, boosting online offer and trying

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<v Speaker 1>to attract all those doing yourself consumers that have been

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<v Speaker 1>over TikTok and Instagram. But still that's not enough. And

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<v Speaker 1>the earnings report was afar from received. Well, all right,

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<v Speaker 1>one more what do you got for us? And we

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<v Speaker 1>have iris face and automatous technology provider. Honeywell shares been

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<v Speaker 1>down about two percent. It's coming off another downgrade. But

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<v Speaker 1>this is a double down grade. So the company was

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<v Speaker 1>previously by and now it's sell. The down grade is

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<v Speaker 1>coming from Bank of America. It's the only sale rating

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<v Speaker 1>in Bloomberg Data. The tickoryes HO and the stock is

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<v Speaker 1>splitting up in two companies. That's been going on for

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<v Speaker 1>some time. One is dedicated to an aerospace and the

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<v Speaker 1>other to automation. But Bank of America is not excited

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<v Speaker 1>about that. The bank says shares are going to lag

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<v Speaker 1>as elements of its strategy. Disappoint investors. The company has

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<v Speaker 1>only one Celle rating. It's not common to get this.

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<v Speaker 1>It's already down ten percent year to date, but clearly

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<v Speaker 1>the spin off and the new CEO they have, which

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<v Speaker 1>is actually an internal one. Bank of America is not

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<v Speaker 1>bullish about this.

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<v Speaker 2>The stock mover's report from Bloomberg Radio. Check back with

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