Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The Stock Movers Report,
Speaker 1: your roundup of companies making moves in the stock market,
Speaker 1: harnessing the power of Bloomberg Data. Let's take a look
Speaker 1: at some stocks on the move today.
Speaker 2: Alexis Christopherus. Let's start with Workday because that stock is
Speaker 2: down nine percent today, down nearly forty percent so far
Speaker 2: this year. So here's a story. It's a software company.
Speaker 2: We know it gave an outlook for quarterly subscription sales
Speaker 2: that fell short of estimates. And really at the heart
Speaker 2: this is an AI story, right. It's getting caught up
Speaker 2: in the selling amongst the software stocks because of anxiety
Speaker 2: that AI is going to take away jobs in that area.
Speaker 2: So subscription sales make up the bulk of Workday's total revenue,
Speaker 2: and we know that application software makers are facing these
Speaker 2: spheres over potential disruption to their business models from AI tools. Now,
Speaker 2: earlier this month, I don't know if you remember, said
Speaker 2: that its co founder was going to return to the
Speaker 2: company as CEO to lead the company through what they
Speaker 2: call this AI transition. But it's not really helping the
Speaker 2: stock much. Is not much confidence in that at the moment,
Speaker 2: So and not only work day. We're looking at Salesforce.
Speaker 2: I mean they're sort of complementary businesses, but it's a
Speaker 2: cloud based enterprise systems company, and Salesforce is out with
Speaker 2: earnings after today's closing belt. Analysts have some high expectations there.
Speaker 2: I mean the stock is down thirty percent. It was
Speaker 2: down thirty percent last year, so it can use some
Speaker 2: good news. Yeah. Absolutely, those application software companies really under pressure.
Speaker 2: We've seen that. Cova, yeah, which you and I have said.
Speaker 2: We have not had Cabo busing yet. This is a
Speaker 2: Mediterranean fast casual. So Tom if Cava, if you're listening,
Speaker 2: you can send the three of us some bowls. We
Speaker 2: could check it out. Cava is up eleven percent here
Speaker 2: and up fifteen and a half percent year to date.
Speaker 2: It is basically blown away the competition, and by that
Speaker 2: I mean Chipotle and Sweet Green in that fast casual space.
Speaker 2: It says that comp sales for the year came in
Speaker 2: above analyst estimates, and Chipotle Mexican Grill, you know, as
Speaker 2: a comparison point, issued in underwhelming a comparable sales forecast recently.
Speaker 2: And Sweet Green also is you know, having some challenges.
Speaker 2: So Bloomberg Intelligence out with some commentary saying Cava's long
Speaker 2: term growth outlook remains compelling as the rising popularity of
Speaker 2: healthy Mediterranean food in the US continues to proliferate and
Speaker 2: growing brand awareness, though, is a struggle for the company.
Speaker 2: I think they're right. You know, I didn't know when
Speaker 2: it first came out, was kava like a wine bar.
Speaker 2: I did think that at first. That's not It is
Speaker 2: this fast cant so it's like a fancy, sweet green.
Speaker 1: Yeah.
Speaker 2: I think you're I would say that fair Mediterranean fair,
Speaker 2: which I can get on board with. And the maker
Speaker 2: of Guinness Diagio, it is cutting its guidance for the
Speaker 2: second time this fiscal year. The companies having a hard
Speaker 2: time a reviving demand, not only here in the US,
Speaker 2: but also in China. So the stock is down twelve percent.
Speaker 2: Diagio here in the pre market. Diagio's new CEO, he
Speaker 2: took over just about seven weeks ago, Dave Lewis, But
Speaker 2: he already said the problem with this company, which also
Speaker 2: you know, makes Johnny Walker whiskey. He says it's forgotten
Speaker 2: how to serve drinks to its customers properly. What does
Speaker 2: he mean by that? I meaning they are not investing
Speaker 2: enough in building and executing businesses like bars, pubs, restaurants,
Speaker 2: the interfacing, the actual day to day with customers. Do
Speaker 2: you think COVID shifted. Oh no, that's exactly thematic, dramatic change.
Speaker 2: Absolutely COVID. A lot of people were making their cocktails
Speaker 2: at home because they couldn't go to a bar. And
Speaker 2: then now you also have fewer, you know, more people
Speaker 2: drinking less alcohol. So those two things happening at once.
Speaker 1: I just think COVID had a profound change.
Speaker 2: I don't have any science or math or analysis, but
Speaker 2: you have to be it. I am drinking Claus Jenny Kremel,
Speaker 2: the poor guinness. You have to really do it correctly
Speaker 2: and not everybody get that right. Head on the base,
Speaker 2: help us with that. You know, you can go to
Speaker 2: a good Irish club, they know what they're doing. Do
Speaker 2: you like your guinness on tap? Or how does this
Speaker 2: stall a bottle?
Speaker 1: Oh?
Speaker 2: No? No? No? South America? Yeah, okay, yeah?
Speaker 1: Are is that it?
Speaker 2: Well? I have first Solar it's down sixteen percent. There
Speaker 2: you do please?
Speaker 1: Yeah.
Speaker 2: Ext So it released its fourth quarter earnings report, missing
Speaker 2: the consensus earnings estimates. Already, you know that it's fast
Speaker 2: and furious here coming from the analysts, a number of downgrades,
Speaker 2: h and price targets for First Solar, so that company
Speaker 2: among the biggest losers here in the S and P
Speaker 2: five hundred this morning.
Speaker 1: This stock mover's report from Bloomberg Radio. Check back with
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