WEBVTT - CoreWeave Dips; Meta Labor Move; Home Depot Reports

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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 Tim Keen with Paul Sweeni and Bloomberg's Alexis kosoffers.

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<v Speaker 3>All right, we'll really be Nvidia tomorrow when they report

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<v Speaker 3>after the closing bill, but right now I'm looking at

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<v Speaker 3>core Weave because this stock is down more than four percent.

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<v Speaker 3>It's one of its competitors, Nebbius also down about three percent.

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<v Speaker 3>This is because of a joint venture between Google's Alphabet

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<v Speaker 3>and Blackstone. It's putting pressure on these what they call

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<v Speaker 3>neo cloud stock. So the venture is going to create

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<v Speaker 3>a new cloud focused on tensor processing units. These are TPUs. Okay,

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<v Speaker 3>Blackstone's going to commit five billion dollars. This is going

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<v Speaker 3>to bring five hundred megawatts of cloud capacity online next year,

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<v Speaker 3>and so a lot of analysts, of course, you're weighing

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<v Speaker 3>in on the There's one Bernstein analyst who noted that

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<v Speaker 3>the deal is quote not immediately problematic for core Weave,

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<v Speaker 3>but it does represent the beginning of a more earnest

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<v Speaker 3>hyperscale attack of the market. That is not what you

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<v Speaker 3>want to hear if you're a core weave or an NEBBEUS.

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<v Speaker 3>And so we're seeing those stocks to take a hit.

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<v Speaker 1>Now, are these the people that are directly involved where

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<v Speaker 1>people don't want data centers? They want a booet commencement speeches.

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<v Speaker 1>I mean their core AI cloud, right, I mean that's

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<v Speaker 1>what they.

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<v Speaker 3>Are, that's what they do. And now the hyperscalers who

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<v Speaker 3>do a whole lot of other things are encroaching on

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<v Speaker 3>their business and they're saying this could actually hurt their

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<v Speaker 3>transition towards that sort of really lucrative enterprise heavy base

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<v Speaker 3>of customer because you've got the hyper scalers moving in.

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<v Speaker 3>So we're seeing some pressure there. Let's move on to Meta.

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<v Speaker 3>So here's what's going on. Big week for Meta employees.

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<v Speaker 3>They told employees today or actually yesterday, that it was

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<v Speaker 3>going to reassign seven thousand workers to focus on new

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<v Speaker 3>initiatives around owned AI. But it comes the same week

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<v Speaker 3>the company is planning to lay off ten percent of

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<v Speaker 3>its workforce, that's about eight thousand workers as they refocus

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<v Speaker 3>around becoming more efficient with regards to artificial intelligence. So

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<v Speaker 3>they're just one of a string of companies doing this, right.

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<v Speaker 3>Microsoft block Coinbase recently announced similar cuts because of AI.

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<v Speaker 3>But it's not just technology standard chartered right. The British

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<v Speaker 3>based bank today announcing that it's going to be having

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<v Speaker 3>some job cuts because it's going to incorporate more AI,

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<v Speaker 3>especially into those lower end jobs. As people say, over

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<v Speaker 3>time it's going to add jobs. I don't know, we're

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<v Speaker 3>not seeing it yet if that's happening. I mean maybe

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<v Speaker 3>it's shaking out this way upfront. But and this is

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<v Speaker 3>effect in going back to you know, Tom talking about

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<v Speaker 3>commencement speeches, it's affecting the grads who are trying to

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<v Speaker 3>bring into this job market.

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<v Speaker 1>To be clear, this is not search engines. It's AI

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<v Speaker 1>agents like I got three bullet points, workflow chain aning,

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<v Speaker 1>strategic direction, error debugging AGENTICS.

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<v Speaker 3>Is that what they call it?

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<v Speaker 1>I got You're talking about a sophisticated studio here, gosh.

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<v Speaker 3>I mean, we're still all learning, you know, learning with

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<v Speaker 3>the rest of the industry, all right, home depot, because

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<v Speaker 3>we've got to do it. We've been talking about it

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<v Speaker 3>all morning. But it's sort of like the litmus test

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<v Speaker 3>for where consumers heads are at So there's a key

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<v Speaker 3>metric here, which is sales open at least a year,

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<v Speaker 3>or comparable sales slightly below estimates, and they are admitting,

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<v Speaker 3>you've got elevated interest rates, high housing prices, people are uncertain.

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<v Speaker 3>They're even holding off on upgrading and those home improvement projects.

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<v Speaker 3>And they said they're not sure yet Home Depot, so

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<v Speaker 3>they're not sure yet when high gas prices are going

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<v Speaker 3>to force them to start raising prices because it takes

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<v Speaker 3>gas to get the products to their stores, and so

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<v Speaker 3>they don't know if they're going to, you know, pass

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<v Speaker 3>that along to the consumer. But overall, I think the

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<v Speaker 3>story from Home Depot was consumers are still resilient. They

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<v Speaker 3>reaffirm their guidance, so they're still holding on, but the

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<v Speaker 3>results were not as good as expected when it came

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<v Speaker 3>to comparable sales. Oh, by the way, this week Low's

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<v Speaker 3>and Target tomorrow, some more big box retailers, and then

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<v Speaker 3>we're going to hear from Walmart on Thursday.

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<v Speaker 2>This stock Movers report from Bloomberg Radio. Check back with

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