Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Tim Keen with Paul Sweeni and Bloomberg's Alexis kosoffers.
Speaker 3: All right, we'll really be Nvidia tomorrow when they report
Speaker 3: after the closing bill, but right now I'm looking at
Speaker 3: core Weave because this stock is down more than four percent.
Speaker 3: It's one of its competitors, Nebbius also down about three percent.
Speaker 3: This is because of a joint venture between Google's Alphabet
Speaker 3: and Blackstone. It's putting pressure on these what they call
Speaker 3: neo cloud stock. So the venture is going to create
Speaker 3: a new cloud focused on tensor processing units. These are TPUs. Okay,
Speaker 3: Blackstone's going to commit five billion dollars. This is going
Speaker 3: to bring five hundred megawatts of cloud capacity online next year,
Speaker 3: and so a lot of analysts, of course, you're weighing
Speaker 3: in on the There's one Bernstein analyst who noted that
Speaker 3: the deal is quote not immediately problematic for core Weave,
Speaker 3: but it does represent the beginning of a more earnest
Speaker 3: hyperscale attack of the market. That is not what you
Speaker 3: want to hear if you're a core weave or an NEBBEUS.
Speaker 3: And so we're seeing those stocks to take a hit.
Speaker 1: Now, are these the people that are directly involved where
Speaker 1: people don't want data centers? They want a booet commencement speeches.
Speaker 1: I mean their core AI cloud, right, I mean that's
Speaker 1: what they.
Speaker 3: Are, that's what they do. And now the hyperscalers who
Speaker 3: do a whole lot of other things are encroaching on
Speaker 3: their business and they're saying this could actually hurt their
Speaker 3: transition towards that sort of really lucrative enterprise heavy base
Speaker 3: of customer because you've got the hyper scalers moving in.
Speaker 3: So we're seeing some pressure there. Let's move on to Meta.
Speaker 3: So here's what's going on. Big week for Meta employees.
Speaker 3: They told employees today or actually yesterday, that it was
Speaker 3: going to reassign seven thousand workers to focus on new
Speaker 3: initiatives around owned AI. But it comes the same week
Speaker 3: the company is planning to lay off ten percent of
Speaker 3: its workforce, that's about eight thousand workers as they refocus
Speaker 3: around becoming more efficient with regards to artificial intelligence. So
Speaker 3: they're just one of a string of companies doing this, right.
Speaker 3: Microsoft block Coinbase recently announced similar cuts because of AI.
Speaker 3: But it's not just technology standard chartered right. The British
Speaker 3: based bank today announcing that it's going to be having
Speaker 3: some job cuts because it's going to incorporate more AI,
Speaker 3: especially into those lower end jobs. As people say, over
Speaker 3: time it's going to add jobs. I don't know, we're
Speaker 3: not seeing it yet if that's happening. I mean maybe
Speaker 3: it's shaking out this way upfront. But and this is
Speaker 3: effect in going back to you know, Tom talking about
Speaker 3: commencement speeches, it's affecting the grads who are trying to
Speaker 3: bring into this job market.
Speaker 1: To be clear, this is not search engines. It's AI
Speaker 1: agents like I got three bullet points, workflow chain aning,
Speaker 1: strategic direction, error debugging AGENTICS.
Speaker 3: Is that what they call it?
Speaker 1: I got You're talking about a sophisticated studio here, gosh.
Speaker 3: I mean, we're still all learning, you know, learning with
Speaker 3: the rest of the industry, all right, home depot, because
Speaker 3: we've got to do it. We've been talking about it
Speaker 3: all morning. But it's sort of like the litmus test
Speaker 3: for where consumers heads are at So there's a key
Speaker 3: metric here, which is sales open at least a year,
Speaker 3: or comparable sales slightly below estimates, and they are admitting,
Speaker 3: you've got elevated interest rates, high housing prices, people are uncertain.
Speaker 3: They're even holding off on upgrading and those home improvement projects.
Speaker 3: And they said they're not sure yet Home Depot, so
Speaker 3: they're not sure yet when high gas prices are going
Speaker 3: to force them to start raising prices because it takes
Speaker 3: gas to get the products to their stores, and so
Speaker 3: they don't know if they're going to, you know, pass
Speaker 3: that along to the consumer. But overall, I think the
Speaker 3: story from Home Depot was consumers are still resilient. They
Speaker 3: reaffirm their guidance, so they're still holding on, but the
Speaker 3: results were not as good as expected when it came
Speaker 3: to comparable sales. Oh, by the way, this week Low's
Speaker 3: and Target tomorrow, some more big box retailers, and then
Speaker 3: we're going to hear from Walmart on Thursday.
Speaker 2: This stock Movers report from Bloomberg Radio. Check back with
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Speaker 2: making news on Wall Street and for the latest market
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