WEBVTT - Block Rallies, Duolingo Tumbles, FIGS Surges

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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 3>I'm Tim Stanebeck along with Carol Masser. Let's take a

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<v Speaker 3>look at some stocks on the move today. We're joined

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<v Speaker 3>by Bloomberg, a news process. That reporter Isabelle Lee. A

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<v Speaker 3>lot to choose.

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<v Speaker 4>From today, A lot to choose from, but I made

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<v Speaker 4>sure to choose double digit gains or the clients, because

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<v Speaker 4>go big. It's Friday, So let's talk with block tickers XYZ.

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<v Speaker 1>Which is also cool on its own.

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<v Speaker 4>So shares are up around fifteen percent. This comes after

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<v Speaker 4>the company said it was reducing its workforce by almost

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<v Speaker 4>half in a bet that AI will just change labor productivity.

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<v Speaker 4>So that amounts to some four thousand employees. And Jack

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<v Speaker 4>Dorsey's company has been restructuring its business model since staffing

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<v Speaker 4>in twenty twenty four. That's as the stock has slagged.

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<v Speaker 4>And I want to bring up this point that they

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<v Speaker 4>have really hired so much. They tripled their workforce between

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<v Speaker 4>twenty nineteen to twenty twenty three, which is why analysts say,

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<v Speaker 4>is it really AI or just a.

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<v Speaker 5>Real pandemic over right, and like we heard that from

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<v Speaker 5>a lot of companies, I feel like over the last

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<v Speaker 5>couple of years. So is that what's going on or

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<v Speaker 5>is it something more dramatic when it comes to AI.

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<v Speaker 4>Because the movie which was announced that a share shareholder

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<v Speaker 4>letter offered little details.

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<v Speaker 3>Jack Dorsey did respond to some of that criticism. He said, yes,

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<v Speaker 3>we over hired during COVID because I incorrectly built two

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<v Speaker 3>separate company structures square in cash app rather than one,

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<v Speaker 3>which we corrected mid twenty twenty four, but dismisses all

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<v Speaker 3>the complexity we took on through lending banking and buy now,

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<v Speaker 3>pay later, and that we're now targeting two million dollars

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<v Speaker 3>in gross profit per person. Four x are pre COVID

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<v Speaker 3>efficiency which stayed flat at five hundred thousand from twenty

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<v Speaker 3>nineteen to twenty twenty four, and we have to do

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<v Speaker 3>and run an efficient company better than most. So he

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<v Speaker 3>says this is the way to make it more efficient.

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<v Speaker 3>He's acknowledging that they over high, but this is the

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<v Speaker 3>right there. You can see it on the screen, right.

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<v Speaker 4>Yeah. They are investing heavily and in AI tools to

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<v Speaker 4>run more efficiently. They have their own AI tool called Goose,

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<v Speaker 4>like the singular version of geese. So, I mean, who knows.

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<v Speaker 4>Only time will tell, but for now, investors are liking it.

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<v Speaker 4>I mean, of fifteen percent, that's pretty big.

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<v Speaker 1>Yeah, unless you can't do everything you need to do.

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<v Speaker 3>The story here is is this just something that block

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<v Speaker 3>is going to do or is this going to become commonplace?

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<v Speaker 4>And that's the fear, I know, especially after the Citrini report.

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<v Speaker 6>Yeah, we're just very true.

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<v Speaker 1>Done do I like to do?

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<v Speaker 5>Okay, Yeah, there are questions. We're going to dig into

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<v Speaker 5>more of that later. Let's go to do a lingo.

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<v Speaker 5>We just talked to the company's CEO.

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<v Speaker 1>I know that was a good interview. Do a lingo. Tickers.

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<v Speaker 4>The UOL shares are down more than seventeen percent after

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<v Speaker 4>the company gave a fullier outlook that is below expectations.

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<v Speaker 4>This is the lowest since February twenty twenty three. If

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<v Speaker 4>you type si ns go, so is a language learning

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<v Speaker 4>software and a lot of people are obsessed with this,

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<v Speaker 4>including my team leader of Wildonna. She has a more

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<v Speaker 4>than two thousand day streak and I said that is

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<v Speaker 4>a little crazy. I mean, this is a thousand which.

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<v Speaker 5>This means every day you're on the platform.

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<v Speaker 6>Yes, exactly, I'm in three hundred and fifty chess nothing.

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<v Speaker 1>I know that is nothing. But what are you learning language?

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<v Speaker 6>She's ye, I do Spanish, but I did.

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<v Speaker 4>Chess twenty she's doing Spanish.

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<v Speaker 1>I have a five day streak I think five years ago.

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<v Speaker 6>Not too late.

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<v Speaker 1>But I'm committed to my job, not the language.

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<v Speaker 5>Is it?

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<v Speaker 2>Bells?

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<v Speaker 5>Bosses?

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<v Speaker 1>Are you Bona? Is my boss? So well done?

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<v Speaker 4>Why are shares down? Because the company said that in

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<v Speaker 4>they're drive to gain subscribers, this would me in slower

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<v Speaker 4>earnings gross and narrower profit margins. I also feel like

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<v Speaker 4>maybe this was a pandemic thing, you know, when people

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<v Speaker 4>were stuck at home. Now I'm in between the office, travel,

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<v Speaker 4>meeting friends, so maybe it could be that too.

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<v Speaker 5>But they're a learning platform, so it's math, it's other things, right, So.

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<v Speaker 1>They yeah, doing some math, yes, yes.

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<v Speaker 6>Absolutely, mostly language.

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<v Speaker 1>But time is finite. Wow.

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<v Speaker 3>And Luis has talked about you just now, which if

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<v Speaker 3>you missed, you can check it out on our podcast feed.

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<v Speaker 6>But he did. Uh.

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<v Speaker 3>He has in the past talked about what we need

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<v Speaker 3>to we compete with. You know, anytime somebody opens their phone,

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<v Speaker 3>so we compete with Netflix or non Netflix, Instagram, TikTok, TikTok,

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<v Speaker 3>anything like.

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<v Speaker 1>That, Bloomberg.

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<v Speaker 6>That's why we need to make it fun.

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<v Speaker 1>You just sit there and go exactly, there's meditation. Now

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<v Speaker 1>it's very okay, let's go to Figs. Figs.

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<v Speaker 4>Ticker is Figs f I GS So I have never

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<v Speaker 4>worn Figs. I'm not a medical worker, but.

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<v Speaker 1>A lot of my friends who are love it. They're

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<v Speaker 1>coffee scrubs. Okay, exactly. So my friends in Asia they.

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<v Speaker 5>Remember family members in the hospital and they were really

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<v Speaker 5>cute exactly, and like you would go.

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<v Speaker 4>To the nurse and like some they'd order here and

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<v Speaker 4>I'd have to bring them back. And they're also like

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<v Speaker 4>way more expensive than others. But then my friends would say, no,

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<v Speaker 4>it's really worth it.

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<v Speaker 1>They like them. Yes, it's the quality and stuff.

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<v Speaker 4>So anyway, shares our op let's see twenty three percent.

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<v Speaker 4>This is the most the highest since May twenty twenty two.

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<v Speaker 4>The company results were much stronger than expected, prompting a

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<v Speaker 4>lot of analyst upgrades. One of them is Goldman Sachs.

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<v Speaker 4>They said that this shows momentum. Key Back also upgraded.

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<v Speaker 4>They said the better than expected The results show that

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<v Speaker 4>PIGS is focusing on delivering profitable, sustainable growth.

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<v Speaker 2>The Stock Mover's Report from Bloomberg Radio. Check back with

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