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.
Alexis Christopherus. Let's start with Workday because that stock is down nine percent today, down nearly forty percent so far this year. So here's a story. It's a software company. We know it gave an outlook for quarterly subscription sales that fell short of estimates. And really at the heart this is an AI story, right. It's getting caught up in the selling amongst the software stocks because of anxiety that AI is going to take away jobs in that area.
So subscription sales make up the bulk of Workday's total revenue, and we know that application software makers are facing these spheres over potential disruption to their business models from AI tools. Now, earlier this month, I don't know if you remember, said that its co founder was going to return to the company as CEO to lead the company through what they call this AI transition. But it's not really helping the stock much. Is not much confidence in that at the moment,
So and not only work day. We're looking at Salesforce. I mean they're sort of complementary businesses, but it's a cloud based enterprise systems company, and Salesforce is out with earnings after today's closing belt. Analysts have some high expectations there. I mean the stock is down thirty percent. It was down thirty percent last year, so it can use some good news. Yeah. Absolutely, those application software companies really under pressure.
We've seen that. Cova, yeah, which you and I have said. We have not had Cabo busing yet. This is a Mediterranean fast casual. So Tom if Cava, if you're listening, you can send the three of us some bowls. We could check it out. Cava is up eleven percent here and up fifteen and a half percent year to date. It is basically blown away the competition, and by that I mean Chipotle and Sweet Green in that fast casual space.
It says that comp sales for the year came in above analyst estimates, and Chipotle Mexican Grill, you know, as a comparison point, issued in underwhelming a comparable sales forecast recently. And Sweet Green also is you know, having some challenges.
So Bloomberg Intelligence out with some commentary saying Cava's long term growth outlook remains compelling as the rising popularity of healthy Mediterranean food in the US continues to proliferate and growing brand awareness, though, is a struggle for the company. I think they're right. You know, I didn't know when it first came out, was kava like a wine bar. I did think that at first. That's not It is this fast cant so it's like a fancy, sweet green.
Yeah.
I think you're I would say that fair Mediterranean fair, which I can get on board with. And the maker of Guinness Diagio, it is cutting its guidance for the second time this fiscal year. The companies having a hard time a reviving demand, not only here in the US, but also in China. So the stock is down twelve percent. Diagio here in the pre market. Diagio's new CEO, he took over just about seven weeks ago, Dave Lewis, But he already said the problem with this company, which also
you know, makes Johnny Walker whiskey. He says it's forgotten how to serve drinks to its customers properly. What does he mean by that? I meaning they are not investing enough in building and executing businesses like bars, pubs, restaurants, the interfacing, the actual day to day with customers. Do you think COVID shifted. Oh no, that's exactly thematic, dramatic change. Absolutely COVID. A lot of people were making their cocktails
at home because they couldn't go to a bar. And then now you also have fewer, you know, more people drinking less alcohol. So those two things happening at once.
I just think COVID had a profound change.
I don't have any science or math or analysis, but you have to be it. I am drinking Claus Jenny Kremel, the poor guinness. You have to really do it correctly and not everybody get that right. Head on the base, help us with that. You know, you can go to a good Irish club, they know what they're doing. Do you like your guinness on tap? Or how does this stall a bottle?
Oh?
No? No? No? South America? Yeah, okay, yeah?
Are is that it?
Well? I have first Solar it's down sixteen percent. There you do please?
Yeah.
Ext So it released its fourth quarter earnings report, missing the consensus earnings estimates. Already, you know that it's fast and furious here coming from the analysts, a number of downgrades, h and price targets for First Solar, so that company among the biggest losers here in the S and P five hundred this morning.
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