WEBVTT - Cloudflare and Coinbase Drop; Wendy's Beat

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

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<v Speaker 1>I'm Tom Keen with Paul Sweeni and Bloomberg's Alexis Christophers.

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<v Speaker 3>All right, I'm going to start actually with a loser

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<v Speaker 3>of the day, even though you say I'm very optimistic,

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<v Speaker 3>but Coinbase down two point six percent. You're to date,

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<v Speaker 3>this stock is down fifteen percent. So just a couple

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<v Speaker 3>days ago, Coinbase announced it was going to cut about

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<v Speaker 3>seven hundred jobs, or fourteen percent of its workforce. Well,

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<v Speaker 3>today it posted quarterly results that missed already lowered estimates

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<v Speaker 3>on both the top and bottom line. First quarter revenue

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<v Speaker 3>at coinbased down thirty one percent. That's on the heels

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<v Speaker 3>of a twenty percent decline in the previous quarter. It

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<v Speaker 3>also posted a net loss of nearly four hundred million dollars.

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<v Speaker 3>Here's the story. Falling token prices, they're draining trading activity

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<v Speaker 3>across digital asset markets and also Coinbase, by the way,

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<v Speaker 3>was hit with a big outage. Today they say they

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<v Speaker 3>they're back up and running, but it was out for

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<v Speaker 3>like seven hours because of a problem an overheating at

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<v Speaker 3>an Amazon Web Services data center in northern Virginia. So

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<v Speaker 3>that's sort of the last thing it needed.

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<v Speaker 1>Yep. But Paul, over the last couple of years, it's

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<v Speaker 1>gone from fifty to four hundred, five zero to four hundred,

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<v Speaker 1>and we're back down now at one eighty seven. Is

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<v Speaker 1>the indication. Okay, I have no idea what to make about.

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<v Speaker 2>No, No, it's just a got used to volatility there,

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<v Speaker 2>that's what That's what I take away there.

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<v Speaker 3>There's a lot more competition in this field. Morgan Stanley

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<v Speaker 3>also has their own e trade platform coming.

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<v Speaker 1>Out, so we're Katie Greifeld when I need it.

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<v Speaker 3>Yeah, that's all right. Cloud Fair, the ticker symbol there

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<v Speaker 3>net and et down nearly seventeen percent, was having a

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<v Speaker 3>pretty good year though, up about thirty percent year to date.

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<v Speaker 3>So the company gave a forecast for revenue that fell

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<v Speaker 3>short of estimates. It's also going to cut about eleven

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<v Speaker 3>hundred jobs, and this is a familiar theme as it

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<v Speaker 3>prioritizes artificial intelligence tools into its operating model. Just ahead

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<v Speaker 3>of these results, though, an analyst at Bloomberg Intelligence said

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<v Speaker 3>that higher costs related to powering AI tools may slow

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<v Speaker 3>cloud fairs revenue growth. The company is looking to build

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<v Speaker 3>on its recent success by focusing on large enterprise customers

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<v Speaker 3>who spend one hundred thousand or more. So they're looking

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<v Speaker 3>for the big money, the big spenders.

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<v Speaker 1>It's a moonshot throw up one hundred and seven percent

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<v Speaker 1>this year.

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<v Speaker 3>Yep, yeah, Intactay.

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<v Speaker 1>I'm in Davos. A kid comes up to me. I

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<v Speaker 1>meany kid. He's like twenty eight to thirty two years old,

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<v Speaker 1>hanging out. He goes, Hi, my name is Matthew. Can

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<v Speaker 1>I come watch you on TV? I'm a huge fan,

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<v Speaker 1>So I'm up there. I don't even know who I'm

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<v Speaker 1>talking to. And as a guy, I got them up

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<v Speaker 1>on set with you know, the team at Bloomberg Television

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<v Speaker 1>in Davos, and I didn't realize until I was back

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<v Speaker 1>in America, like six weeks it was Matthew Prince a

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<v Speaker 1>cloud fair Matthew.

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<v Speaker 3>If you're listening, he wasn't wearing his name Badge.

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<v Speaker 1>Yeah, I didn't have his name bad John. Come on,

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<v Speaker 1>you don't wear your name badge when Barry's playing at

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<v Speaker 1>the piano bar. But the answer is Matthew. I'm sorry.

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<v Speaker 1>I didn't know who you are. When everybody's going, oh

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<v Speaker 1>my god, it's Matthew Prince and I'm like, you know,

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<v Speaker 1>I know nothing. Next, well, you.

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<v Speaker 3>Made amends now here on the air. All right, let's

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<v Speaker 3>squeez a little Wendy's in here. So the fast food chain,

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<v Speaker 3>posting a first quarter profit of twenty two million dollars

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<v Speaker 3>revenue rose three point three percent, also reaffirmed its full

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<v Speaker 3>year outlook, so we know they're sort of undergoing this

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<v Speaker 3>transformation right now. They're trying to get back on track

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<v Speaker 3>and make their stores profitable once again. The sales growth, though,

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<v Speaker 3>was actually a result of higher franchise fees and as

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<v Speaker 3>well as higher revenue from advertising funds revenue. The CEO,

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<v Speaker 3>Ken Cook, who by the way, is their interim CEO,

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<v Speaker 3>He said, there's still in the early stages of a

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<v Speaker 3>turnaround after launching a growth strategy last year, but those

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<v Speaker 3>same store restaurant sales really important. We know it a

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<v Speaker 3>seven point eight percent drop, so they continue to lose

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<v Speaker 3>business to McDonald's, which we know this week came out

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<v Speaker 3>with better than expected earnings.

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<v Speaker 1>We go to surveyance Wendy's correspondent Paul Sweeney, Are you

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<v Speaker 1>into the new cookie dough Frosty Fusion?

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<v Speaker 3>No, but I am a big fan of the Bacon Eater.

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<v Speaker 2>And Nathan Hagar, respected news voice from Watching DC, stepped

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<v Speaker 2>in and said, best surprise in the business. Wow solid

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<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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<v Speaker 2>making news on Wall Street and for the latest market

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