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The Stock Mover's Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.
I'm Emli Grafeo along with Barry Htholtz. Let's take a look at some stocks on the move today with Carmen Reinikey equities reporter and a deputy team leader for US Equities at Bloomberg News. Let's go to Pallenteer. That was a story dominating yesterday's postmarket trade and today's trade.
Yeah, so, and it's also just it's unusual to see a company beat and raise in its earnings and then fall this much. So Palenteer, which is ticker PLTR, fell nearly eight percent today, which is the worst one day drop since August. So they were at or near record high before earning. So maybe a little bit of buy the rumors, sell the news. But there was also some
tension that sort of came around after the report. So Michael Berry, a big short fame, disclosed some bearish wagers on Palenteer and in video, so he bought Palenteer put options seemingly, you know, a little bit of a barish bet that could have been why the stock is moving. Also, you know, Alex Karp's CEO and gave a lot of very colorful comments on both the earnings call last name that on CNBC again today, and you know, he has a ton of retail following. People generally really like him.
But you never know, I mean maybe that that could have also sort of added to some embarrassing.
And what about AMD that that's also did pretty good, but we're seeing, you know, not a great response.
Well, it's kind of all over the place. So it was, you know, it was up a little bit, it was down as much as four percent. Now it's just slightly below zero. It's you know, kind of trending down flat towards yeah, flat. But this is also one that had a really huge rally up into earnings today. It was near a record high. It's really gotten this huge push behind it as sort of the contender to Nvidia in you know, the AI chip race. So you know, they give a revenue forecast that maybe is sort of failing
to live up to very lofty expectations. Fourth quarter revenue they said will be roughly nine point six billion. Analystid estimated nine point two billion on average, but there was some very high project projections that were nearly ten billion, so well, you know it'll be we'll see what's you know, going to keep happening there. I think the earnings calls coming up, so that's something definitely I'll be listening to. But we have a few other really interesting after hours movers.
So Arista Networks is down. Let me see where it is now? Down a down eleven percent. So the company's forecast for adjusted gross margin in the fourth quarter fell short of the average analyst estimate. But that's really the only negative thing I could see so far looking at this report, So it's the one I'm going to keep an eye on. The Other one that's just a big, you know, double digit move that caught my eye is ax On, So this is the Taser maker. Shares are
down more than twenty percent right now. In after hours. The company reported a narrower capital expenditure forecast for the full year. It seems like that's something that people are sort of zeroing in on. And there were some segments sales sort of fell short of Wall Street estimates. So Taser segment net sales were twenty three No, two hundred
and thirty eight million. Estimate was closer to two hundred and sixty million, and then Software and Censors came in about three hundred and five million, and the estimate was four hundred and twenty seven.
That's a big mess. Twenty percent is still that's a giant weab.
Yeah. It also said it will buy Carbine, which is an emergency communication and response platform. The deal values that company at six hundred and twenty five million, so we could also just be seeing that. Yep, yep.
I'm always curious, maybe Barry, we could get your take on this about like how investors are supposed to interpret the capex in this environment, Like after earning the company comes out and says we're going to spend more on this exciting new thing. Is that good or is that bad for the stock?
You know, we discussed that briefly with man Deep when he was here. If it's some of the hyperscalers that have a business that depends on CAPEC spending, so those are the Amazons and the Oracles of the world. Hey, the more we spend, the more revenue that gives us out a couple of quarters or a couple of years out. The investing community seems to like that. But on the flip side of that, when you have meta, when you
have Facebook, I still can't call it meta. When Facebook says we're going to spend one hundred billion dollars because you know, Facebook.
Because we have the money, right.
Because we have that money, you get a generous response from investors that, hey, one hundred billion dollars is a lot of cash flow. Your earnings are going to be affected by that. We're not that happy. And what was Facebook down? What was Meta down briefly after earnings about nine percent. That's a pretty big big move for a nearly trillion dollar company.
Carmen in just fifteen seconds. What are your sources saying? Do they like to hear kapex or if a company comes out and says, oh, we're going to.
Spend a ton, I think it's so cyclical. And this is something that we even saw sort of a year ago in the AI. You know trend is that you know, people were not excited about Capex because they weren't seeing the ROI. So I think if there is the idea that ROI is going to come, people are happy about it. But if those results aren't there or they're not anticipated to be there then it becomes something that investors want to punish.
The Stock Movers report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.