WEBVTT - Generac Soars on Amazon Deal, CoreWeave Falls, Securitize Surges 

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<v Speaker 1>Bloomberg Audio Studios.

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<v Speaker 2>Podcasts. Radio. News. The Stock Movers Report. Your roundup of

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<v Speaker 2>companies making moves in the stock market. Harnessing the power

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<v Speaker 2>of Bloomberg data.

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<v Speaker 3>Time for a look at some stocks on the move.

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<v Speaker 3>We've got Bloomberg News U.S. equities deputy team leader Jess

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<v Speaker 3>Menton in studio with us. Jess, good to see you.

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<v Speaker 3>You brought along some goodies today. Generac, that is the

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<v Speaker 3>company that manufactures generators. They're in the news today.

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<v Speaker 4>What's going on?

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<v Speaker 5>Performing stock in the S &amp; P 500 today. The ticker,

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<v Speaker 5>if you're looking at this GNRC up almost 18%. So

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<v Speaker 5>on pace for the best day since February 11th of

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<v Speaker 5>earlier this year. So basically Amazon just added a new

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<v Speaker 5>avenue into the AI boom and how to trade this.

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<v Speaker 5>I'll tie that together. when you're looking at this because

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<v Speaker 5>what happened here, the firm agreed to supply an $ 8

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<v Speaker 5>billion worth of generators for Amazon's data centers. So of

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<v Speaker 5>course that's been the hot play for a while when

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<v Speaker 5>it comes to data centers the last few years. And

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<v Speaker 5>then also Generac issued a warrant state for a potential

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<v Speaker 5>stake in the company. And so this is.

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<v Speaker 1>Another play where you're looking at this stock.

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<v Speaker 5>And then also compared to the S &amp; P 500's gain,

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<v Speaker 5>of a little bit more than 10% this year, so

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<v Speaker 5>well outperforming the broader market. And then the A &amp;

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<v Speaker 5>R function, if you want to see on the sell

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<v Speaker 5>side as far as what the ratings are. So it

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<v Speaker 5>has 16 buys for Generac, six holds, zero sells. And

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<v Speaker 5>then also the William Blair analyst, Brian Drabb, he said

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<v Speaker 5>the stock could potentially double in price over the next

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<v Speaker 5>12 to 18 months.

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<v Speaker 1>So you're seeing there on the sell side.

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<v Speaker 5>But then even more broadly, if you look over at

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<v Speaker 5>Amazon stock, AMZN up about 2%. So you're seeing This

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<v Speaker 5>also in sympathy with the other MAG7 stocks higher today,

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<v Speaker 5>but also even beyond that. So you have NeoCloud companies

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<v Speaker 5>that are also rallying today, Nebius, Applied Digital, and then

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<v Speaker 5>even beyond that as well, notable chip movers, NVIDIA, best

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<v Speaker 5>point gainer today in the S &amp; P 500, even

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<v Speaker 5>though Generac's the best percentage point gainer as well. But

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<v Speaker 5>then AMD, Broadcom, Marvell, Qualcomm, Dell, all live too.

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<v Speaker 4>Yeah, all live too.

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<v Speaker 5>Back to back. Quite nicely. Especially after yesterday, out of

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<v Speaker 5>some of the corners of the market that were hit

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<v Speaker 5>hardest yesterday, if you're thinking about the Russell 2000 or

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<v Speaker 5>most shorted stocks or even micro-cap stocks that technically tend

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<v Speaker 5>to be more unprofitable, those are the ones that are

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<v Speaker 5>bouncing back the most today.

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<v Speaker 3>Yeah, a lot of people are saying that the sell-off

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<v Speaker 3>we saw right after that Fed meeting was sort of

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<v Speaker 3>a knee-jerk reaction, sort of a little bit overdone. So

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<v Speaker 3>we are seeing buyers come in and have an appetite.

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<v Speaker 1>Right.

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<v Speaker 5>And the ones that typically hold more debt were the

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<v Speaker 5>ones that were hit harder yesterday. So you're seeing those

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<v Speaker 5>bounce back more today. Mm-hmm. All right.

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<v Speaker 4>What's not bouncing back?

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<v Speaker 1>This is CoreWeave.

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<v Speaker 4>What are their shares down?

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<v Speaker 1>Almost 5%?

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<v Speaker 4>Yes.

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<v Speaker 1>So they're down about 5%.

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<v Speaker 5>CRWV is the ticker on this. Down about 5% on

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<v Speaker 5>Pacework's worst day since September 14th. So not too long ago,

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<v Speaker 5>but this is a cloud computing provider among the largest

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<v Speaker 5>decliners in the NASDAQ 100 today.

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<v Speaker 1>So it did kick off a fresh round of fundraising

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<v Speaker 1>that includes.

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<v Speaker 5>A $ 3 billion convertible bond issue.

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<v Speaker 1>So typically when... shareholders hear that. They're going to get

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<v Speaker 1>a little nervous here.

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<v Speaker 5>And then it also agreed to an at-the-market offering program

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<v Speaker 5>that allows it to sell as many as 35 million shares.

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<v Speaker 5>If you looked at year-to-date core, we've up about 12%.

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<v Speaker 5>So still kind of in line where the S &amp;

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<v Speaker 5>P 500 is. So you're seeing that as well as

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<v Speaker 5>some of its peers being pulled down there. But also

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<v Speaker 5>we heard from their earnings on August 11th. So they

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<v Speaker 5>rallied on that. And really a lot of it was

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<v Speaker 5>the boosted demand for AI that So it's kind of

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<v Speaker 5>trying to square that away about the fundamentals for the

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<v Speaker 5>company versus its outlook as well. All right.

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<v Speaker 4>And the last one you have for us today, a

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<v Speaker 4>big winner.

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<v Speaker 2>Yes.

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<v Speaker 4>Securitize. This is a fintech company, right?

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<v Speaker 1>Yes.

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<v Speaker 4>They're up big time today.

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<v Speaker 1>So this is a digital securities platform.

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<v Speaker 5>It actually went public in early July through a blank

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<v Speaker 5>check merger.

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<v Speaker 1>SECZ is the ticker up about.

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<v Speaker 5>17% on Paceford's best day since June 29th there. So

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<v Speaker 5>the SEC did grieve the green light for the digital

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<v Speaker 5>versions of stocks to start trading in the US.

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<v Speaker 4>So if you look at other- Those tokenized stocks, right?

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<v Speaker 5>Yes, the tokenized, specifically Coinbase, COIN, the ticker up about 5% today.

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<v Speaker 5>And then Robinhood, the hood is the ticker symbol on that.

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<v Speaker 5>It's up about 3% on Paceford's best day since September

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<v Speaker 5>3rd there. So Securitize, it's not in the S &amp;

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<v Speaker 5>P 500. It's actually in the Bloomberg World Large, Small,

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<v Speaker 5>and Mid-Cap And also it has about a market cap

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<v Speaker 5>of around a billion dollars.

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<v Speaker 1>So kind of much smaller than some of its peers here.

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<v Speaker 5>But that's why you're seeing that get a boost on

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<v Speaker 5>the crypto kind of outlook there, what it could mean

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<v Speaker 5>for tokenization and then its peers on the back of that.

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<v Speaker 4>It's interesting because with the Clarity Act. was a no-go

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<v Speaker 4>in the Senate. Exactly. And these stocks took a big hit.

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<v Speaker 4>And then bingo, they bounced right back.

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<v Speaker 5>The SEC comes back in and sort of gives the

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<v Speaker 5>green light on that. I guess it remains to be

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<v Speaker 5>seen exactly how the regulatory aspects, because it's so sensitive

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<v Speaker 5>to that as well as the direction of Bitcoin.

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<v Speaker 1>So it's something we'll have to continue to monitor.

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<v Speaker 3>We can definitely see maybe the CFTC come out now

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<v Speaker 3>with their own rules. Just sort of put up guardrails

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<v Speaker 3>because Congress basically kicked the can down the road and went,

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<v Speaker 3>we're not going to deal with this right now. You

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<v Speaker 3>guys deal with it.

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<v Speaker 5>Yeah, and that's definitely how we're seeing the stock reaction there.

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<v Speaker 5>And then Baird actually sees the SEC guidance as a

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<v Speaker 5>positive for Coinbase, as well as some of those other

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<v Speaker 5>shares like Robinhood. So really thinking that tokenized equities to

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<v Speaker 5>clients can put their assets to offering more on par.

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<v Speaker 5>potentially with Robinhood when you're thinking about Coinbase. But well,

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<v Speaker 5>obviously remains to be seen. We'll have to see how

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<v Speaker 5>all this plays out. A lot remains to be seen.

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<v Speaker 5>Jess Metten, Bloomberg News, U.S. equities deputy team leader. Always

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<v Speaker 5>great to see you.

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<v Speaker 4>And thanks for bringing along those stocks.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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