WEBVTT - Arista Networks Falls, Axon Drops Afterhours, AMD Fails to Impress

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>The Stock Mover's 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 Emli Grafeo along with Barry Htholtz. Let's take a

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<v Speaker 3>look at some stocks on the move today with Carmen

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<v Speaker 3>Reinikey equities reporter and a deputy team leader for US

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<v Speaker 3>Equities at Bloomberg News. Let's go to Pallenteer. That was

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<v Speaker 3>a story dominating yesterday's postmarket trade and today's trade.

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<v Speaker 4>Yeah, so, and it's also just it's unusual to see

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<v Speaker 4>a company beat and raise in its earnings and then

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<v Speaker 4>fall this much. So Palenteer, which is ticker PLTR, fell

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<v Speaker 4>nearly eight percent today, which is the worst one day

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<v Speaker 4>drop since August. So they were at or near record

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<v Speaker 4>high before earning. So maybe a little bit of buy

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<v Speaker 4>the rumors, sell the news. But there was also some

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<v Speaker 4>tension that sort of came around after the report. So

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<v Speaker 4>Michael Berry, a big short fame, disclosed some bearish wagers

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<v Speaker 4>on Palenteer and in video, so he bought Palenteer put

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<v Speaker 4>options seemingly, you know, a little bit of a barish

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<v Speaker 4>bet that could have been why the stock is moving. Also,

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<v Speaker 4>you know, Alex Karp's CEO and gave a lot of

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<v Speaker 4>very colorful comments on both the earnings call last name

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<v Speaker 4>that on CNBC again today, and you know, he has

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<v Speaker 4>a ton of retail following. People generally really like him.

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<v Speaker 4>But you never know, I mean maybe that that could

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<v Speaker 4>have also sort of added to some embarrassing.

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<v Speaker 1>And what about AMD that that's also did pretty good,

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<v Speaker 1>but we're seeing, you know, not a great response.

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<v Speaker 4>Well, it's kind of all over the place. So it was,

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<v Speaker 4>you know, it was up a little bit, it was

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<v Speaker 4>down as much as four percent. Now it's just slightly

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<v Speaker 4>below zero. It's you know, kind of trending down flat

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<v Speaker 4>towards yeah, flat. But this is also one that had

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<v Speaker 4>a really huge rally up into earnings today. It was

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<v Speaker 4>near a record high. It's really gotten this huge push

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<v Speaker 4>behind it as sort of the contender to Nvidia in

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<v Speaker 4>you know, the AI chip race. So you know, they

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<v Speaker 4>give a revenue forecast that maybe is sort of failing

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<v Speaker 4>to live up to very lofty expectations. Fourth quarter revenue

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<v Speaker 4>they said will be roughly nine point six billion. Analystid

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<v Speaker 4>estimated nine point two billion on average, but there was

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<v Speaker 4>some very high project projections that were nearly ten billion,

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<v Speaker 4>so well, you know it'll be we'll see what's you know,

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<v Speaker 4>going to keep happening there. I think the earnings calls

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<v Speaker 4>coming up, so that's something definitely I'll be listening to.

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<v Speaker 4>But we have a few other really interesting after hours movers.

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<v Speaker 4>So Arista Networks is down. Let me see where it

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<v Speaker 4>is now? Down a down eleven percent. So the company's

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<v Speaker 4>forecast for adjusted gross margin in the fourth quarter fell

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<v Speaker 4>short of the average analyst estimate. But that's really the

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<v Speaker 4>only negative thing I could see so far looking at

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<v Speaker 4>this report, So it's the one I'm going to keep

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<v Speaker 4>an eye on. The Other one that's just a big,

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<v Speaker 4>you know, double digit move that caught my eye is

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<v Speaker 4>ax On, So this is the Taser maker. Shares are

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<v Speaker 4>down more than twenty percent right now. In after hours.

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<v Speaker 4>The company reported a narrower capital expenditure forecast for the

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<v Speaker 4>full year. It seems like that's something that people are

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<v Speaker 4>sort of zeroing in on. And there were some segments

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<v Speaker 4>sales sort of fell short of Wall Street estimates. So

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<v Speaker 4>Taser segment net sales were twenty three No, two hundred

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<v Speaker 4>and thirty eight million. Estimate was closer to two hundred

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<v Speaker 4>and sixty million, and then Software and Censors came in

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<v Speaker 4>about three hundred and five million, and the estimate was

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<v Speaker 4>four hundred and twenty seven.

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<v Speaker 1>That's a big mess. Twenty percent is still that's a

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<v Speaker 1>giant weab.

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<v Speaker 4>Yeah. It also said it will buy Carbine, which is

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<v Speaker 4>an emergency communication and response platform. The deal values that

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<v Speaker 4>company at six hundred and twenty five million, so we

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<v Speaker 4>could also just be seeing that. Yep, yep.

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<v Speaker 3>I'm always curious, maybe Barry, we could get your take

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<v Speaker 3>on this about like how investors are supposed to interpret

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<v Speaker 3>the capex in this environment, Like after earning the company

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<v Speaker 3>comes out and says we're going to spend more on

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<v Speaker 3>this exciting new thing. Is that good or is that

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<v Speaker 3>bad for the stock?

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<v Speaker 1>You know, we discussed that briefly with man Deep when

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<v Speaker 1>he was here. If it's some of the hyperscalers that

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<v Speaker 1>have a business that depends on CAPEC spending, so those

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<v Speaker 1>are the Amazons and the Oracles of the world. Hey,

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<v Speaker 1>the more we spend, the more revenue that gives us

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<v Speaker 1>out a couple of quarters or a couple of years out.

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<v Speaker 1>The investing community seems to like that. But on the

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<v Speaker 1>flip side of that, when you have meta, when you

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<v Speaker 1>have Facebook, I still can't call it meta. When Facebook

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<v Speaker 1>says we're going to spend one hundred billion dollars because

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<v Speaker 1>you know, Facebook.

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<v Speaker 3>Because we have the money, right.

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<v Speaker 1>Because we have that money, you get a generous response

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<v Speaker 1>from investors that, hey, one hundred billion dollars is a

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<v Speaker 1>lot of cash flow. Your earnings are going to be

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<v Speaker 1>affected by that. We're not that happy. And what was

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<v Speaker 1>Facebook down? What was Meta down briefly after earnings about

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<v Speaker 1>nine percent. That's a pretty big big move for a

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<v Speaker 1>nearly trillion dollar company.

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<v Speaker 3>Carmen in just fifteen seconds. What are your sources saying?

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<v Speaker 3>Do they like to hear kapex or if a company

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<v Speaker 3>comes out and says, oh, we're going to.

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<v Speaker 4>Spend a ton, I think it's so cyclical. And this

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<v Speaker 4>is something that we even saw sort of a year

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<v Speaker 4>ago in the AI. You know trend is that you know,

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<v Speaker 4>people were not excited about Capex because they weren't seeing

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<v Speaker 4>the ROI. So I think if there is the idea

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<v Speaker 4>that ROI is going to come, people are happy about it.

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<v Speaker 4>But if those results aren't there or they're not anticipated

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<v Speaker 4>to be there then it becomes something that investors want

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<v Speaker 4>to punish.

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

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