WEBVTT - Block Soars on Results; Flutter Slumps After Revenue Miss; Duolingo Sinks

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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 stocks in the move today.

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<v Speaker 1>Alexis Christophers.

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<v Speaker 3>Let's start with Jack Dorsey's company. It's called Block. So

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<v Speaker 3>this is the company that adds in cash, app and Square,

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<v Speaker 3>the digital payments companies. This stock is on fire this morning.

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<v Speaker 3>It is up nineteen percent. Ticker symbol XYZ. So here's

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<v Speaker 3>the news. Block is going to slash its workforce in half.

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<v Speaker 3>It is cutting about four thousand jobs. It's a move

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<v Speaker 3>the company describes as a bet on artificial intelligence changing

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<v Speaker 3>the future of the job market. We know that Block

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<v Speaker 3>has invested very heavily here in AI tools. It's even

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<v Speaker 3>got its own tool, it's called Goose. I haven't used it,

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<v Speaker 3>but they believe many companies will ultimately have to make

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<v Speaker 3>similar moves like cutting jobs due to AI. But you know,

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<v Speaker 3>some analysts are now questioning whether companies are genuinely being

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<v Speaker 3>transformed by artificial intelligence or are they simply using it

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<v Speaker 3>as a rationale for costs.

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<v Speaker 4>So you do that ten percent, not fifty percent this

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<v Speaker 4>goes to what I said, I thought, just personally along

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<v Speaker 4>that again, AIS can be a significant net destroyer of

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<v Speaker 4>jobs and not going to be this. Oh, don't worry,

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<v Speaker 4>they'll find different things to do. I'm not buying that

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<v Speaker 4>for a minute.

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<v Speaker 1>Yeah, this is one of our guests said weeks and

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<v Speaker 1>weeks ago, they're getting out in front. You know, it's

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<v Speaker 1>horse and cart, and the horse right now seems to

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<v Speaker 1>be corporation saying let's go, let's go, let's go, even

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<v Speaker 1>before the implementation. Yeah, yeah, what do you got next.

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<v Speaker 3>I've got flutter. It is not fluttering upward though it

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<v Speaker 3>is down eleven percent. So this is the company that

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<v Speaker 3>owns fan Duel out with fourth quarter results falling short

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<v Speaker 3>of estimates. It says it's due to slower new customers

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<v Speaker 3>signups and moderating growth in wager. It's also came out

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<v Speaker 3>with an annual outlook that underwhelmed investors. Look at the

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<v Speaker 3>end of the day, the NFL season was a disappointment

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<v Speaker 3>for gamblers. You had big wins for sports books or

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<v Speaker 3>early in the season that may have given customers, they said,

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<v Speaker 3>less money to spend later on, and then in the

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<v Speaker 3>second half of the season, fewer favorite teams made the playoffs,

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<v Speaker 3>which I think is a real thing. Right, you had

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<v Speaker 3>less people wanting to wager the.

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<v Speaker 1>Next number of years into this experiment. Are we learning

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<v Speaker 1>as a society that this is a good way to

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<v Speaker 1>hand over money to somebody else?

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<v Speaker 3>Gambling?

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<v Speaker 1>Ry edgers, folks. We have a blueber intelligence and expert

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<v Speaker 1>on this. Yeah, and I'm fair. We got to get

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<v Speaker 1>Brian out of here, like year two, year three, year

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<v Speaker 1>four into this. Do we have a collective memory We're

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<v Speaker 1>not going to make money with Vanduel.

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<v Speaker 4>I don't know. I just I think I just think

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<v Speaker 4>more about the societal issues here. More and more people

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<v Speaker 4>are gambling, and I don't think that's in doing the

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<v Speaker 4>sports betting because it's so easy.

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<v Speaker 3>But here's the thing, it's they're changing how they're gambling.

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<v Speaker 3>Because Flutterstock is down forty three percent this year, just

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<v Speaker 3>year to date, it's because investors are worried about the

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<v Speaker 3>impact of the prediction market. It's like Calshie and Polymarket.

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<v Speaker 3>But meantime, Flutter CEO said today there is quote no

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<v Speaker 3>meaningful impact on his business from those companies, but starts going.

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<v Speaker 1>On what the Red Sox are going to do next?

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<v Speaker 3>Dual Lingo. I love I use this app. Sometimes people

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<v Speaker 3>say it's pretty good. It's pretty good. It's got the

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<v Speaker 3>little green owl mascot kind of cute. But the shares

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<v Speaker 3>are tumbling twenty five percent here it's a language learning

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<v Speaker 3>software company. Gave a full year outlook that's below expectations.

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<v Speaker 3>The stock has dropped thirty three percent this year. And again,

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<v Speaker 3>what our investors worried about AI disrupting this company. So

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<v Speaker 3>the company did say though that it's going to step

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<v Speaker 3>up its investment in AI and they're going to sacrifice

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<v Speaker 3>some degree of monetization in order to accelerate user growth

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<v Speaker 3>and engagement. They want to double the current number of

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<v Speaker 3>daily active users to one hundred million by twenty twenty eight.

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<v Speaker 3>So lofty goals for the little green owl mascot at

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<v Speaker 3>Duo Lingo.

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<v Speaker 4>I think if you want to learn a language, you's

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<v Speaker 4>got a parashut yourself into some tiny town in a

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<v Speaker 4>little arctic ever country.

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<v Speaker 3>You want to know the best way to learn it,

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<v Speaker 3>speak it, surround immerse yourself in it, which is hard

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<v Speaker 3>as you do.

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