WEBVTT - Nvidia and the AI Selloff, Robinhood Falls, Elf Sinks on Missed Estimates

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data. Let's

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<v Speaker 2>take a look at some stocks on the move today.

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<v Speaker 2>I'm Bailey Lipschutz with Normal Linda and we're joined by

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<v Speaker 2>Bloomberg News Cross Asset reporter Deniza Sikkova. What's top of mind?

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<v Speaker 1>A lot of earnings, a lot going on, A lot

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<v Speaker 1>of red on the screen. Yeah, but we're starting with

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<v Speaker 1>one company that is not going to report earnings for

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<v Speaker 1>TiO November nineteen. Nvidia is Actually it fell as much

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<v Speaker 1>as four point five percent today. If you look over

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<v Speaker 1>the last three days, it's down about nine percent, which

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<v Speaker 1>is the worst stretch since April. So really one of

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<v Speaker 1>the biggest selloffs we're seeing, obviously in the whole AI

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<v Speaker 1>space in tech, like the big moves we're seeing today

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<v Speaker 1>are indeed driven by some of the big winners behind

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<v Speaker 1>the Air Revolution. Of course, we had the story yesterday

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<v Speaker 1>about Jensen Huan warning that China will build the US

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<v Speaker 1>beat the US in the artificial intelligence race, so perhaps

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<v Speaker 1>this is weighing on sentiment. Of course, we have jobs

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<v Speaker 1>date we have macro, We have a lot of things

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<v Speaker 1>combined as more and more people have been worried about valuation,

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<v Speaker 1>and one clear uh loser in that space is currently

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<v Speaker 1>in video. The comments came after, obviously people have been

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<v Speaker 1>worried for a very long time. He said China is

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<v Speaker 1>going to win the AI race. Remarks come after Trump

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<v Speaker 1>administration maintained a ban on Nvidia chips selling more their

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<v Speaker 1>most advanced chips to China. We also saw a report

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<v Speaker 1>about Michael Burry actually placing a short bed there, which

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<v Speaker 1>he has warned about multiple times. Multiple times he has

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<v Speaker 1>been wrong, but clearly this week the combination factors are

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<v Speaker 1>definitely weighing in. Of course, still a very strong year

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<v Speaker 1>for Nvidia, but combining the warnings with the shaw Key

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<v Speaker 1>foundation of the rally we have seen this year, we're

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<v Speaker 1>seeing sentiments starting to weigh away in on Nvidia and

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<v Speaker 1>a lot of those AI winners. It's just just a

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<v Speaker 1>proxy of a sentiment. I would say, yeah.

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<v Speaker 3>I mean, we're looking at a video of course, always

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<v Speaker 3>still in focus, but we're looking at shares of video

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<v Speaker 3>up about forty one percent near today. That's taker in

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<v Speaker 3>v DA. I wish I had a good segue from

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<v Speaker 3>chip makers to the beauty space. But you're also watching

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<v Speaker 3>shares of elf Beauty.

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<v Speaker 1>Yeah, that's I don't know how to connect it as well.

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<v Speaker 1>But the loss there is much bigger. We can say

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<v Speaker 1>that for sure. Shares of elf Beauty fell as much

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<v Speaker 1>as twenty four percent in pre market trading. But last

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<v Speaker 1>time we really talked so much about l Beauty was

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<v Speaker 1>when they signed that deal with Hailey Bieber. There was

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<v Speaker 1>so much enthusiasm the stock sword. There was kind of

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<v Speaker 1>almost like a new era and a lot of optimism.

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<v Speaker 1>Now we're seeing the opposite part of this company for

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<v Speaker 1>wer outlook for just that earnings per share disappointed. Net

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<v Speaker 1>sales as well missed analyst estimates. They're positive about sales growth,

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<v Speaker 1>but there were perhaps a really high bar and high

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<v Speaker 1>expectation about roads, which is Haley Beaver's brand, so there

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<v Speaker 1>is some disappointment there. The company had passed on giving investors'

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<v Speaker 1>outlook in the weast quarter. This time, they gave about

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<v Speaker 1>one point fifty five billion to one point fifty seven

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<v Speaker 1>billion and earnings about two There's an eighty sins per share.

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<v Speaker 1>This we've seen some growth. This is mostly thanks to

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<v Speaker 1>the growth in both retail and e commerce channels. But

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<v Speaker 1>that's it. It's having a really bad year despite a

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<v Speaker 1>deal that brought so much optimism for this company. But

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<v Speaker 1>we can see after earnings it's clearly falling about pretty.

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<v Speaker 3>Fast, really bad the year. Down forty percent this year,

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<v Speaker 3>but even today the worst day since twenty eighteen. You're

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<v Speaker 3>also looking at Robinhood, right, and of course I was

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<v Speaker 3>taker Elf meant to mention that there.

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<v Speaker 1>Yeah, robbin Hood had a wonderful year and it still does.

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<v Speaker 1>It's still have more than two hundred percent, but today

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<v Speaker 1>we're seeing perhaps part of the market sentiment a really

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<v Speaker 1>bad day. Films much is ten percent. The trading platform

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<v Speaker 1>reported cryptocurrency revenue that came below estimates. Robin Hood is

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<v Speaker 1>so much more than what it was in twenty twenty one.

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<v Speaker 1>They do close and funds, they do prediction markets, they

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<v Speaker 1>do crypto, they do all of these. Thanks and retail

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<v Speaker 1>investors and beyond have been rewarding them, and their valuations

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<v Speaker 1>have gone through the roof. Their stock price has been

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<v Speaker 1>going through the roof, and really anyone who invested in

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<v Speaker 1>the company in the last two years have been rewarded

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<v Speaker 1>very well. That said, net income rolls two hundred and

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<v Speaker 1>seventy one percent. This was better than one analyst expected.

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<v Speaker 1>They also top fifty three cents average estimate of analysts.

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<v Speaker 1>Just operating experences came higher than expected. And a big

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<v Speaker 1>news is that their CFO is leaving, so perhaps that's

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<v Speaker 1>also part of the sentiment. That's it. They've been growing

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<v Speaker 1>really fast, so the drop today maybe is not weighing

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<v Speaker 1>on prices that much. Here today, A.

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<v Speaker 2>Lot going on though, Thank you so much, Bloomberg News

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<v Speaker 2>Cross Asset reporter Danitza Sikova the Stock Movers Report from

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<v Speaker 2>Bloomberg Radio. Check back with us throughout the day for

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<v Speaker 2>the latest roundup of companies making news on Wall Street

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