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The Stock Movers report your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.
I'm Carol Masser along with Tim Statvik. Let's get to some stocks on the move. Joining us right now is Bloomberg News Crossouse that reported Danizazikova here in studio. A lot to talk about, a lot to choose from, because docs are certainly on the move.
Let's start with Cisco, which less than.
Twenty four hours ago we were all over their earnings.
For sure, a lot of stocks in the red, and definitely Cisco is one of the big down names today. It's actually nearly worse the day in four years. The company is down about twelve percent. The ticker, of course is CSCO. At the company gave weaker than expected forecast for profitability, and everyone is looking at those numbers in terms of profits, and clearly we're seeing a sign that memory chip prices are in a toll that said, there were pretty good numbers when it comes to ABEAT sales forecast.
The number that perhaps is worrying investors is just a growth growth margin, which came roughly at sixty six percent, which was lower than what the street.
So higher costs, you're just not as profitable.
Exactly exactly, And obviously there is a lot of competition in that space.
We have HP, we have Broadcom.
There is also a memory chip shortage, so there are a lot of headwinds in that state space.
The company was doing well here today before this.
Now it's down here to date, but obviously today is the big drag. What we're seeing, of course is tightening margins, but also some delay in US government contracts, which is also wearing in the company for.
Sure, you know on it. It'd be interesting to see what the stock would do on today when the entire tech sector is not lower.
Yeah, you look at the NASA and a half percent.
Apples down five percent, Cisco's the second biggest drag, but app Lovin is down twenty percent, and Tesla down three percent. Amazon, Meta Platforms, Broadcom all down more than two point five percent.
It's hard to find stocks in the green, especially anything text software.
It's really hard.
I think it's also a nervous, jittery market when it comes to AI in terms of okay to spend the build out the ROI, right, we know folks are continuing to spend, but the return on investment and then who ultimately are the winners, but also the impact on so many different sectors. This AI scare trade continues moving through the market.
It's really fascinating.
Every day we see a newtube being released and a totally news sector of the market that we thought was kind of immune being hit. And that's what happening to logistics today. This is the AI scare trade of the day. If we look at the Russell three thousand trucking index, it's down more than three percent today and some of the names like cch Robinson Worldwide down twenty percent.
It's really really big losses and.
It's coming after Algorithm Holdings is giving a live customer deployment which is supposed to scale fried volumes by three hundred four hundred percent. So the whole thing is maybe we will need fewer trucks and fewer workers, which is going to weigh on trucking and more likely on logistics.
I thought I thought the like things were safe, right, things.
Were safe, all the economy was safe, right, So.
Is AI supposed to make it more efficient, like so that truckloads don't go out until they're fully packed, and so maybe it don't make.
Exactly it's more about efficiency, not getting more trucks that you need and kind of fearing perfectly little jig sticks before actually getting the trucks, and again that means less labor and fewer trucks.
So those companies, I'm.
Going to get a T shirt that says knee jerk reaction because I just think, you know, anybody who comes on right reminds us like, we're going to see how this plays out. They're going to be winners and losers, no doubt about it, and our world is going to change. But you know, I don't know. I guess we'll have to just wait and see.
Be patient.
That AI scared trade, so logistics stocks. We're seeing a play at real estate servicing companies too.
That's another one. It's really hard to find the winners.
I feel almost every sector is considered to be a loser in some sap or form. An interesting one is real estate services cbr E groups that dropped as much as fifteen percent. This is a real estate services company. Of course, of those kinds of commercial real estate companies have been under a lot of pressure ever since the pandemic Obviously there was a big lag, there was a big issue with office space. But the company is saying now that the outlook remains uncertain as AI may reduce
long term office space demand. They're saying fewer and fewer workers may work from the office, so there will be less and less demand for those massive office buildings.
Obviously that's very few Have I heard this.
I was just going to say, yeah, I thought this happened during COVID, in post COVID, but.
I don't know.
We talked about it six years ago.
I thought it's going to create new jobs. Yeah.
Also, I mean a lot of those things you can see a few day trade. The analysts are saying, oh, this is overblown, and there is a little bit of calm down. But this is obviously like really in the future. But investors are definitely punishing any sector that could be in any way shaped by AI.
This stock mover's 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.