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