WEBVTT - Cisco Falls, AppLovin Dips, Equinix Rallies 

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:17.040
<v Speaker 2>in the stock market. Harnessing the power of Bloomberg data.

0:00:16.560 --> 0:00:17.840
<v Speaker 1>Take a look at some of the stocks on the

0:00:17.840 --> 0:00:20.520
<v Speaker 1>move today. We can do that with Bloomberg's Billy Lipschaltz.

0:00:20.520 --> 0:00:21.479
<v Speaker 2>Billy, what are you looking at today?

0:00:21.520 --> 0:00:24.000
<v Speaker 1>Yeah, we're looking at a flat S and P five hundred,

0:00:24.040 --> 0:00:26.079
<v Speaker 1>But as you mentioned, plenty going on under the surface.

0:00:26.120 --> 0:00:30.080
<v Speaker 1>Want to start with Cisco Systems ticker CSCO. I know

0:00:30.120 --> 0:00:31.280
<v Speaker 1>you guys are going to touch on it later in

0:00:31.280 --> 0:00:34.199
<v Speaker 1>the show, but down right now about ten percent. This

0:00:34.280 --> 0:00:37.559
<v Speaker 1>comes after headline earnings pretty darn good, but when you

0:00:37.560 --> 0:00:41.800
<v Speaker 1>look under the surface margin outlook week, BI analysts saying

0:00:42.400 --> 0:00:44.880
<v Speaker 1>that they expect the company to have to mitigate further

0:00:44.960 --> 0:00:47.880
<v Speaker 1>margin erosion. We saw Bank of America coming out saying

0:00:47.920 --> 0:00:51.400
<v Speaker 1>that it's not only their overall memory prices but also

0:00:51.520 --> 0:00:53.080
<v Speaker 1>the mix. Do you want to just call out though,

0:00:53.080 --> 0:00:55.680
<v Speaker 1>that Cisco Systems before the print, yere to date was

0:00:55.800 --> 0:00:58.640
<v Speaker 1>up eleven percent. So on our equities desk we sometimes

0:00:58.640 --> 0:01:02.040
<v Speaker 1>call that price to perfection. So missing expectations, the buyside

0:01:02.040 --> 0:01:03.840
<v Speaker 1>will look for reasons to sell the stock, but you

0:01:03.880 --> 0:01:05.640
<v Speaker 1>never really want to see one of the bigger companies

0:01:05.760 --> 0:01:08.480
<v Speaker 1>in the SP five hundred down almost ten percent. It's

0:01:08.520 --> 0:01:11.920
<v Speaker 1>worst day since November twenty twenty three. The company started

0:01:11.959 --> 0:01:15.119
<v Speaker 1>by two Stanford professors who all they wanted to do

0:01:15.200 --> 0:01:17.960
<v Speaker 1>was send mushy love notes to each other over their computer.

0:01:18.120 --> 0:01:20.679
<v Speaker 1>This is my favorite part about talking Cisco when you're

0:01:20.680 --> 0:01:22.480
<v Speaker 1>on because it's the same story, but it's new to me.

0:01:22.600 --> 0:01:25.840
<v Speaker 2>It's right before, it's perfect.

0:01:25.920 --> 0:01:28.440
<v Speaker 1>It's like we planned it that way. What's next? Well,

0:01:28.480 --> 0:01:30.880
<v Speaker 1>you're talking about Valentine's Day, has love in the name

0:01:30.920 --> 0:01:35.880
<v Speaker 1>app love and ticker app down seventeen percent. This is

0:01:35.920 --> 0:01:38.560
<v Speaker 1>a company that has been under pressure given uncertainty around

0:01:38.600 --> 0:01:41.720
<v Speaker 1>the AI impact. Down forty three percent year to date.

0:01:41.760 --> 0:01:43.360
<v Speaker 1>That is your worst performing the S and P five

0:01:43.440 --> 0:01:46.920
<v Speaker 1>hundred Again, earning's not that bad. This is a company, though,

0:01:46.920 --> 0:01:49.760
<v Speaker 1>that uses mobile app marketing, so if you ever play

0:01:49.760 --> 0:01:51.920
<v Speaker 1>any of those games on your phone, they're typically the

0:01:52.000 --> 0:01:54.880
<v Speaker 1>one serving you those ads. So fourth quarter results an

0:01:54.880 --> 0:01:57.840
<v Speaker 1>outlook not that bad, but there's so much uncertainty around

0:01:57.840 --> 0:02:00.120
<v Speaker 1>AI disruption how it's going to impact the business. This

0:02:00.200 --> 0:02:02.880
<v Speaker 1>is a company that was under market selling pressure the

0:02:02.920 --> 0:02:03.639
<v Speaker 1>last few weeks.

0:02:03.760 --> 0:02:08.080
<v Speaker 2>It's also meme stock, right, or trades like a memestock.

0:02:08.200 --> 0:02:11.800
<v Speaker 1>A lot trades like a memestock. Its valuation is quite lofty.

0:02:11.840 --> 0:02:14.240
<v Speaker 1>We saw this company be one of the best performers

0:02:14.280 --> 0:02:15.800
<v Speaker 1>over the last few years. There was a lot of

0:02:15.800 --> 0:02:18.760
<v Speaker 1>potential excitement. We do also see about five percent of

0:02:18.760 --> 0:02:21.200
<v Speaker 1>this year is currently sold short, which is actually pretty

0:02:21.280 --> 0:02:23.720
<v Speaker 1>high given a stock is down almost fifty percent year

0:02:23.760 --> 0:02:25.680
<v Speaker 1>to date, so it does have a bit of that

0:02:25.760 --> 0:02:30.919
<v Speaker 1>retail trader flavor. But I would say at least trading

0:02:30.960 --> 0:02:34.920
<v Speaker 1>patterns recently less meat stock and more ouch. All right,

0:02:34.919 --> 0:02:38.480
<v Speaker 1>One more quick Equinix ticker EQIX. They're in the data

0:02:38.520 --> 0:02:41.720
<v Speaker 1>center space. Surprise, surprise, they beat expectations. Shares up more

0:02:41.720 --> 0:02:45.360
<v Speaker 1>than twelve percent year to date, up about twenty eight percent.

0:02:45.600 --> 0:02:49.000
<v Speaker 1>So as we continue to use open ai and xai

0:02:49.320 --> 0:02:51.919
<v Speaker 1>Anthropic to do our jobs, are also just create fun videos.

0:02:52.040 --> 0:02:55.840
<v Speaker 1>Data center capacity and demand really outstripping expectations. So Equinix

0:02:56.320 --> 0:02:58.360
<v Speaker 1>off to a hot start, providing a bit of a

0:02:58.400 --> 0:03:00.959
<v Speaker 1>boost to expectations for some of those private companies in

0:03:01.000 --> 0:03:04.680
<v Speaker 1>the data center space, which again have been challenged when

0:03:04.680 --> 0:03:06.800
<v Speaker 1>you look at their stock performance over the last eighteen months.

0:03:07.919 --> 0:03:12.160
<v Speaker 2>The Stockmovers Report from Bloomberg Radio. Check back with us

0:03:12.200 --> 0:03:15.000
<v Speaker 2>throughout the day for the latest roundup of companies making

0:03:15.080 --> 0:03:18.680
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:03:18.880 --> 0:03:22.920
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:03:22.960 --> 0:03:26.040
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:03:26.040 --> 0:03:27.440
<v Speaker 2>Bloomberg Business app.