WEBVTT - Workday Falls on Margin Outlook Miss; Cava Jumps After Upbeat Forecast; Diageo Drops on Weaker Guidance

0:00:02.520 --> 0:00:09.960
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The Stock Movers Report,

0:00:10.240 --> 0:00:13.440
<v Speaker 1>your roundup of companies making moves in the stock market,

0:00:13.680 --> 0:00:17.440
<v Speaker 1>harnessing the power of Bloomberg Data. Let's take a look

0:00:17.480 --> 0:00:19.079
<v Speaker 1>at some stocks on the move today.

0:00:19.480 --> 0:00:23.360
<v Speaker 2>Alexis Christopherus. Let's start with Workday because that stock is

0:00:23.440 --> 0:00:28.120
<v Speaker 2>down nine percent today, down nearly forty percent so far

0:00:28.280 --> 0:00:30.440
<v Speaker 2>this year. So here's a story. It's a software company.

0:00:30.520 --> 0:00:33.200
<v Speaker 2>We know it gave an outlook for quarterly subscription sales

0:00:33.240 --> 0:00:36.720
<v Speaker 2>that fell short of estimates. And really at the heart

0:00:36.880 --> 0:00:39.640
<v Speaker 2>this is an AI story, right. It's getting caught up

0:00:39.640 --> 0:00:43.160
<v Speaker 2>in the selling amongst the software stocks because of anxiety

0:00:43.240 --> 0:00:46.800
<v Speaker 2>that AI is going to take away jobs in that area.

0:00:46.960 --> 0:00:50.040
<v Speaker 2>So subscription sales make up the bulk of Workday's total revenue,

0:00:50.479 --> 0:00:53.000
<v Speaker 2>and we know that application software makers are facing these

0:00:53.040 --> 0:00:58.240
<v Speaker 2>spheres over potential disruption to their business models from AI tools. Now,

0:00:58.360 --> 0:01:00.640
<v Speaker 2>earlier this month, I don't know if you remember, said

0:01:00.640 --> 0:01:02.880
<v Speaker 2>that its co founder was going to return to the

0:01:02.920 --> 0:01:06.080
<v Speaker 2>company as CEO to lead the company through what they

0:01:06.120 --> 0:01:09.399
<v Speaker 2>call this AI transition. But it's not really helping the

0:01:09.440 --> 0:01:11.919
<v Speaker 2>stock much. Is not much confidence in that at the moment,

0:01:12.000 --> 0:01:14.720
<v Speaker 2>So and not only work day. We're looking at Salesforce.

0:01:14.720 --> 0:01:16.960
<v Speaker 2>I mean they're sort of complementary businesses, but it's a

0:01:17.000 --> 0:01:20.039
<v Speaker 2>cloud based enterprise systems company, and Salesforce is out with

0:01:20.080 --> 0:01:24.119
<v Speaker 2>earnings after today's closing belt. Analysts have some high expectations there.

0:01:24.120 --> 0:01:27.160
<v Speaker 2>I mean the stock is down thirty percent. It was

0:01:27.200 --> 0:01:29.600
<v Speaker 2>down thirty percent last year, so it can use some

0:01:29.640 --> 0:01:33.399
<v Speaker 2>good news. Yeah. Absolutely, those application software companies really under pressure.

0:01:33.400 --> 0:01:37.280
<v Speaker 2>We've seen that. Cova, yeah, which you and I have said.

0:01:37.280 --> 0:01:39.880
<v Speaker 2>We have not had Cabo busing yet. This is a

0:01:39.920 --> 0:01:43.240
<v Speaker 2>Mediterranean fast casual. So Tom if Cava, if you're listening,

0:01:43.560 --> 0:01:45.240
<v Speaker 2>you can send the three of us some bowls. We

0:01:45.280 --> 0:01:48.400
<v Speaker 2>could check it out. Cava is up eleven percent here

0:01:48.960 --> 0:01:51.040
<v Speaker 2>and up fifteen and a half percent year to date.

0:01:51.080 --> 0:01:53.400
<v Speaker 2>It is basically blown away the competition, and by that

0:01:53.480 --> 0:01:57.520
<v Speaker 2>I mean Chipotle and Sweet Green in that fast casual space.

0:01:58.120 --> 0:02:00.640
<v Speaker 2>It says that comp sales for the year came in

0:02:00.720 --> 0:02:05.800
<v Speaker 2>above analyst estimates, and Chipotle Mexican Grill, you know, as

0:02:06.000 --> 0:02:10.440
<v Speaker 2>a comparison point, issued in underwhelming a comparable sales forecast recently.

0:02:11.080 --> 0:02:15.040
<v Speaker 2>And Sweet Green also is you know, having some challenges.

0:02:15.080 --> 0:02:18.799
<v Speaker 2>So Bloomberg Intelligence out with some commentary saying Cava's long

0:02:18.880 --> 0:02:22.680
<v Speaker 2>term growth outlook remains compelling as the rising popularity of

0:02:22.720 --> 0:02:27.720
<v Speaker 2>healthy Mediterranean food in the US continues to proliferate and

0:02:27.840 --> 0:02:31.320
<v Speaker 2>growing brand awareness, though, is a struggle for the company.

0:02:31.360 --> 0:02:32.600
<v Speaker 2>I think they're right. You know, I didn't know when

0:02:32.600 --> 0:02:34.679
<v Speaker 2>it first came out, was kava like a wine bar.

0:02:35.520 --> 0:02:38.480
<v Speaker 2>I did think that at first. That's not It is

0:02:38.480 --> 0:02:40.560
<v Speaker 2>this fast cant so it's like a fancy, sweet green.

0:02:41.480 --> 0:02:41.760
<v Speaker 1>Yeah.

0:02:42.040 --> 0:02:44.760
<v Speaker 2>I think you're I would say that fair Mediterranean fair,

0:02:44.880 --> 0:02:47.120
<v Speaker 2>which I can get on board with. And the maker

0:02:47.200 --> 0:02:51.360
<v Speaker 2>of Guinness Diagio, it is cutting its guidance for the

0:02:51.440 --> 0:02:54.560
<v Speaker 2>second time this fiscal year. The companies having a hard

0:02:54.600 --> 0:02:57.079
<v Speaker 2>time a reviving demand, not only here in the US,

0:02:57.120 --> 0:03:00.480
<v Speaker 2>but also in China. So the stock is down twelve percent.

0:03:00.760 --> 0:03:03.840
<v Speaker 2>Diagio here in the pre market. Diagio's new CEO, he

0:03:03.880 --> 0:03:06.240
<v Speaker 2>took over just about seven weeks ago, Dave Lewis, But

0:03:06.280 --> 0:03:09.400
<v Speaker 2>he already said the problem with this company, which also

0:03:09.440 --> 0:03:12.320
<v Speaker 2>you know, makes Johnny Walker whiskey. He says it's forgotten

0:03:12.360 --> 0:03:15.680
<v Speaker 2>how to serve drinks to its customers properly. What does

0:03:15.720 --> 0:03:19.040
<v Speaker 2>he mean by that? I meaning they are not investing

0:03:19.160 --> 0:03:23.760
<v Speaker 2>enough in building and executing businesses like bars, pubs, restaurants,

0:03:23.760 --> 0:03:26.440
<v Speaker 2>the interfacing, the actual day to day with customers. Do

0:03:26.520 --> 0:03:31.440
<v Speaker 2>you think COVID shifted. Oh no, that's exactly thematic, dramatic change.

0:03:31.560 --> 0:03:35.520
<v Speaker 2>Absolutely COVID. A lot of people were making their cocktails

0:03:35.520 --> 0:03:37.320
<v Speaker 2>at home because they couldn't go to a bar. And

0:03:37.360 --> 0:03:39.640
<v Speaker 2>then now you also have fewer, you know, more people

0:03:39.760 --> 0:03:43.400
<v Speaker 2>drinking less alcohol. So those two things happening at once.

0:03:44.920 --> 0:03:47.320
<v Speaker 1>I just think COVID had a profound change.

0:03:47.320 --> 0:03:49.800
<v Speaker 2>I don't have any science or math or analysis, but

0:03:50.240 --> 0:03:52.840
<v Speaker 2>you have to be it. I am drinking Claus Jenny Kremel,

0:03:52.960 --> 0:03:55.120
<v Speaker 2>the poor guinness. You have to really do it correctly

0:03:55.320 --> 0:03:58.520
<v Speaker 2>and not everybody get that right. Head on the base,

0:03:59.280 --> 0:04:01.720
<v Speaker 2>help us with that. You know, you can go to

0:04:01.720 --> 0:04:04.200
<v Speaker 2>a good Irish club, they know what they're doing. Do

0:04:04.240 --> 0:04:06.440
<v Speaker 2>you like your guinness on tap? Or how does this

0:04:06.480 --> 0:04:07.120
<v Speaker 2>stall a bottle?

0:04:07.160 --> 0:04:07.400
<v Speaker 1>Oh?

0:04:07.320 --> 0:04:10.200
<v Speaker 2>No? No? No? South America? Yeah, okay, yeah?

0:04:10.440 --> 0:04:11.560
<v Speaker 1>Are is that it?

0:04:12.000 --> 0:04:14.880
<v Speaker 2>Well? I have first Solar it's down sixteen percent. There

0:04:14.880 --> 0:04:15.560
<v Speaker 2>you do please?

0:04:15.680 --> 0:04:15.840
<v Speaker 1>Yeah.

0:04:15.920 --> 0:04:18.880
<v Speaker 2>Ext So it released its fourth quarter earnings report, missing

0:04:18.920 --> 0:04:22.960
<v Speaker 2>the consensus earnings estimates. Already, you know that it's fast

0:04:22.960 --> 0:04:26.320
<v Speaker 2>and furious here coming from the analysts, a number of downgrades,

0:04:26.720 --> 0:04:31.440
<v Speaker 2>h and price targets for First Solar, so that company

0:04:31.520 --> 0:04:33.240
<v Speaker 2>among the biggest losers here in the S and P

0:04:33.279 --> 0:04:34.159
<v Speaker 2>five hundred this morning.

0:04:35.120 --> 0:04:39.160
<v Speaker 1>This stock mover's report from Bloomberg Radio. Check back with

0:04:39.240 --> 0:04:41.800
<v Speaker 1>us throughout the day for the latest roundup of companies

0:04:41.880 --> 0:04:44.960
<v Speaker 1>making news on Wall Street and for the latest market

0:04:45.000 --> 0:04:49.440
<v Speaker 1>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:49.560 --> 0:04:53.080
<v Speaker 1>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:53.120 --> 0:04:54.599
<v Speaker 1>the Bloomberg Business app.