WEBVTT - Coinbase and Pinterest Jump; Shopify Slumps

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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>Let's take a look at some stocks on the move today.

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<v Speaker 3>I'm Tom Keen with bol Sweeni and Bloomberg's Alexis christoffers.

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<v Speaker 4>Thank you, Tom. I want to start with Coinbase because

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<v Speaker 4>the stock is up more than four percent and it

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<v Speaker 4>can use it because you're to date it's down more

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<v Speaker 4>than ten percent, and a little change really hasn't done

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<v Speaker 4>much of anything in the past years. So here's the news.

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<v Speaker 4>This is a crypto exchange, of course, and Coinbase is

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<v Speaker 4>going to cut around fourteen percent of its workforce. That

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<v Speaker 4>amounts to about seven hundred jobs. It is citing the

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<v Speaker 4>need to manage costs and what it calls a volatile market,

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<v Speaker 4>and also, of course, advances in artificial intelligence. Now Coinbase

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<v Speaker 4>is CEO Brian Armstrong. He took to x to post

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<v Speaker 4>that it plans to concentrate its remaining staff around AI

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<v Speaker 4>skills and it wants to reduce layers of management. So

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<v Speaker 4>what is that going to look like? It says in

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<v Speaker 4>this new structure, some teams can consist of just one

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<v Speaker 4>person with the responsibilities of things like engineers, designers, and

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<v Speaker 4>product managers combined into a single role. Now, it's not

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<v Speaker 4>the latest company to cut costs. In the crypto and

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<v Speaker 4>payment space, Block and Gemini Space also slashed staff recently

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<v Speaker 4>again because as they incorporate AI and also coin basically

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<v Speaker 4>going to be out with earnings on Thursday.

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<v Speaker 3>So we're looking for you nailed that and that you

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<v Speaker 3>said slash. Are they slashing or at the margin or

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<v Speaker 3>are they just absolutely getting rid of businesses? That's what

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<v Speaker 3>I can't get a picture.

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<v Speaker 4>I don't I don't know. Are they just doing you know,

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<v Speaker 4>more with less? You know, namely with AI.

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<v Speaker 3>I mean traditionally it's like, you know, two percent, okay,

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<v Speaker 3>it's competition four percent help here. Anything over four percent

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<v Speaker 3>gets your attention. Yep. Those are ginormous. They are.

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<v Speaker 1>And I don't feel like this is pairing back employee

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<v Speaker 1>hoarding like we saw maybe in the pandemic.

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<v Speaker 3>They were well passed you.

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<v Speaker 1>I've just said, clear hoarding. I think this is just AI. Yeah,

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<v Speaker 1>I don't know.

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<v Speaker 4>Which also plays into my next stock is pinterest cut jobs.

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<v Speaker 4>You remember back in January because of AI, so it's

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<v Speaker 4>in the news today because this it's skyrocketing the stock

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<v Speaker 4>nineteen percent a year to date, Pinterest is down about

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<v Speaker 4>ten percent. For those who don't know, Tom Keane, Pinterest

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<v Speaker 4>is a visual search engine. You can save things and

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<v Speaker 4>discover things like recipes, home to core travel.

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<v Speaker 3>You know.

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<v Speaker 4>It was like a feast for the eyes. So the

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<v Speaker 4>company reported first quarter sales at top estimates. It's revenue

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<v Speaker 4>outlook for the current period better than expected. It feels

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<v Speaker 4>more than eighty billion searches each month. I had no

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<v Speaker 4>idea it has over six hundred and thirty million month.

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<v Speaker 3>It was years ago. I interviewed Ben, the founder. You know,

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<v Speaker 3>it was very pinteresting and all that except nobody I

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<v Speaker 3>knew my Michael Darter was not on Pinterest, right, you know.

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<v Speaker 3>I mean it's simple is that it's successful, like and

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<v Speaker 3>it's women, and it's like, you know, how to divorce.

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<v Speaker 4>I don't have the demographics, Mber, but I'm going to

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<v Speaker 4>take a wild guest and say it's mostly women who

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<v Speaker 4>jump on Pinterest and save things, and.

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<v Speaker 3>It's still success.

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<v Speaker 4>You're aspirational, you know pin boards if you will.

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<v Speaker 1>For folks, it's working.

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<v Speaker 3>So my Pinterest bow tie display didn't no.

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<v Speaker 4>That did a fly next, all right, Shopify, We're gonna

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<v Speaker 4>stick with this whole e commerce platform idea. Right now,

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<v Speaker 4>the stock is down six percent. So Shopify continued top

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<v Speaker 4>line growth but weak earnings in the first quarter. Revenue

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<v Speaker 4>was up thirty four percent from a year ago. That

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<v Speaker 4>was good, but net income coming in below expectations, And

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<v Speaker 4>if you include investment losses, Shopify actually swung to a

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<v Speaker 4>loss in the quarter of forty five cents a share.

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<v Speaker 4>Shares of Spotify or not Spotify, I'm sorry Shopify. Shopify.

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<v Speaker 4>We're already down twenty one percent this year after a

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<v Speaker 4>fourth quarter earnings miss. And again it's fears around AI.

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<v Speaker 4>The fear here is that it could displace some of

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<v Speaker 4>these legacy e commerce software companies like Shopify.

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<v Speaker 1>Yeah, possibly, right, I mean, I think it's gonna become

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<v Speaker 1>more and more in the shopping experience. Yeah, for a

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<v Speaker 1>lot of people.

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<v Speaker 4>Now they've got AI shopping assistance that some of these

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<v Speaker 4>icon e commerce platforms are coming out with. So it's prevalent.

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