Bloomberg Audio Studios, podcasts, radio news, The.
Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.
Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's a Beer abu Omar. On another positive morning for the market broadly, but you're starting us off with some downers on earnings.
A beer.
What happened with cloud Flair?
Good morning, Yeah, good morning, Nathan. So you're right. I mean, the broader picture is still positive when it comes to overall market performance and what is happening on earnings, but it's not a good day for software. So cloud Flair is now dropping over seventeen percent in the pre trade. And this is again an earning story. It is forecasting revenue for the second quarter where the guidance is missing
average analyst estimate. So it's seeing revenue at around sixty sixty four million to sixty five now the estimate is just a little bit north of that. It's seeing some charges as well that are at about one hundred and forty million to about one hundred and fifty million. But perhaps what was really interesting here is something that we're seeing happening to a lot of these stech companies. So cloud Flare is planning on cutting more than eleven hundred
jobs globally, that is about a fifth of its workforce. Now. The CEO, Matthew Prince, put out a letter where he said that the usage of AI has increased by more than six hundred percent in the last three months alone, and that is one of those reasons that led to the layoffs that we're going to be seeing. So not a great day again, falling over seventeen percent at this point.
So is that a similar story that we're hearing from core Weave and other software company that reported earnings and is now dropping in the early trade.
Yeah, pretty much. I mean it is dropping over six percent now. Now. One thing that core Weave differs from a cloud Flare from is that its revenue is actually not missing that much. So it is it has reported revenue that is north of two billion versus nine hundred and eighty two million on an annual basis. The estimate
was just a little bit under two billion dollars. But essentially it is giving a disappointing forecast for the current quarter, and this is sparking these wider concerns about slowing growth, especially at a time when the company is spending quite heavily to bolster its ongoing operations. So it is forecasting that revenue for the second quarter will range, as I mentioned, from two point four or five around two point five
billion to two point six billion dollars. That's what they said during the earnings called that we heard on Thursday.
All right, well that's some of the downside. Let's turn to the positivity on this Friday. One of the biggest gainers this morning is Iron What's going on with them?
Yeah, so look Iron, I mean that the news there is this deal within video right, and Vidia said it was investing as much as two point one billion dollars in this data center developer, quite a big theme this year. So it is gaining over eight percent in the pre trade market. And this is part of a broader partnership that we're seeing between the two companies, and it's aimed
at bolstering or accelerating the construction of AI infrastructure. Now, Iron has agreed to issue in VideA a five year right to purchase as many as thirty million shares, and that is at an exercise price of seventy dollars. It is also expected to announce a three point four billion dollar AI cloud contract within video, so both companies reacting quite well when it comes to this news, Iron gaining as much as eight percent in the pre trade, VideA
not doing as well. It's up nearly eight percent this morning.
The stock movers 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.