00:09 Speaker A
Now time for some of today’s training tickers. We are watching Palenteer, AI stocks more broadly and pharma stocks. First up, Palenteer. A few items moving that stock today including a push to end use of the software in Denmark and an army memo. Joining us now for more, Yahoo Finance’s Ali Canal. So, lawmakers in Denmark, you know, we’ve seen in different places, voices push various entities to stop using Palenteer for various sort of political reasons.
00:40 Allie Canal
Yeah, and it also stems from what Denmark, the government there is calling privacy concerns. And they really want Palenteer to share their source code. Uh lawmakers lawmakers there passing a motion urging officials to quote commit to purchase or developed fully-fledged alternatives to Palenteer and demand that Palenteer disclose that source code saying regulators have no access to how the software handles citizens personal data. So that’s something that Palenteer is dealing with uh from the Dutch Parliament. And then you mentioned that army memo and this is an internal memo, first reported by Breaking Defense and Reuters, and it called the system a very high risk system and it warned that enemies could gain undetectable access to sensitive data. That’s not something you want to hear from a company that really has centered itself on data and defense. The report saying that authorized users could see all applications no matter their clearance level and that some outside apps weren’t properly vetted. Now, army officials saying that this is all part of the normal security review, but investors clearly taking that in combination from what we’re hearing with with Denmark and you’re seeing shares down around 4% today, but I will say year to date, we are up over 140%. So longer term, um it feels like people are still bullish on Palenteer. There were those question marks of whether or not this was a company that operates like a meme stock, but I think at this point there’s enough bulls out there that make the case that this is a company that you should be taking seriously.
02:02 Speaker A
Well, yes, taking seriously, maybe buying, maybe that’s another question, but it is interesting that, you know, the the that army memo, um the push to modernize the military, they have been really front and center in that. so.
02:16 Allie Canal
And it’s the system designed to connect soldiers, vehicles and commanders in real time. And it also involves other players, Microsoft and Aal, yeah. So it’ll be interesting to see how this develops and I guess if this eventually gets cleared too.
02:29 Speaker A
Right. Yes, good point. And speaking of Pateer by the way, we are looking at AI stocks more broadly. Uh there is a conference going on in Italy where a lot of various um CEOs are speaking. Among them Amazon founder Jeff Bezos, Goldman Sachs CEO David Solomon, and they’re both addressing the question of whether AI, the AI trade is in a bubble. Some really interesting stuff coming out of that.
02:51 Allie Canal
Really interesting because a little bit more of caution, I would say than what we’ve heard from even some of our guests on this show. You have Goldman Sachs CEO David Solomon saying that investors may be overlooking things to be skeptical about, saying that markets could see a drawdown in the next year or two as capital flows into projects that quote, don’t deliver returns. Now, this is something we’ve been discussing because even if you look at Open AI, which is the most valuable private company now, doesn’t turn a profit. So that’s some of the
03:22 Speaker A
I mean, not only does it not turn a profit, it’s like way far from turning a profit.
03:26 Allie Canal
Yes. And that is what some investors and market watchers have flagged when it comes to potential bubble risks. And then to that point, Amazon founder Jeff Bezos called this a possible industrial bubble. He did say though that AI is real. It’s going to change every industry, but right now, you have a lot of money that’s chasing anything that AI touches, whether it’s good, bad, profitable, unprofitable. And and that is the concern here that we’re maybe getting into levels that are potentially just a bit too frothy. Uh so this is something we’ve been tracking, we’ve been talking about. Uh there is a lot to be said when it comes to the earnings uh momentum that we’ve seen from some of these companies. And then on the productivity side too, I mean AI, you continuously hear it that for GDP growth, that is going to be the thing to watch.
04:06 Speaker A
We keep hearing it. When is it? We keep hearing it. I’m really curious to see, you know, because we all also, as we talked about earlier in the show with the guest from indeed, like we’re getting some conflicting sort of how it’s affecting the job market, for example, and you know, so I think it’s still a little bit TBD on the on the macro level.
04:22 Allie Canal
Yeah, and the timing, right? Like how long will investors have that patience until we start to actually see those returns and it’s not just growth at all costs.
04:30 Speaker A
Looks like they’re pretty patient so far. They’re pretty patient so far. But if you look look at the Nasdaq, look at all those charts. But still, yes. All right, let’s talk about pharma stocks as well. poised to cap off their best week in 16 years as a drug pricing and tariff deal with the US government helped ease an overhang that’s been weighing on the sector. Pfizer’s sort of kicking it off and that creating a lot of hope for the other stocks.
04:54 Allie Canal
And Pfizer serving as the blueprint for what this deal could look like and Pfizer essentially promising to cut Medicaid uh drug prices in exchange for a tariff freeve of at least three years. They also are planning to invest $70 billion dollars here in the US. and this is something the Trump administration has been pushing for, not just with the pharmaceutical sector, but the larger tech sector as well. We’ve seen him cozy up to CEOs like Nvidia CEO Jensen Wong, Meta CEO Mark Zuckerberg and those companies have committed hundreds of billions of dollars back into US investments. Seems like Eli Lily is the next pharma company that the White House is targeting here. Uh so again, just takes the worst case scenario of tariffs off the table. That’s leading to a boost in some of these pharma names. You got Pfizer, Merk, Lily all surging double digits this week, each posting their biggest weekly gain since 2009. and analyst saying that if more companies follow Pfizer’s lead, this could ease a lot of those pressures that we’ve seen when it comes to tariff and drug pricing headwind, something we’ve really been talking about all year.
05:57 Speaker A
Yes. Thanks so much Ally. Appreciate it.
05:58 Allie Canal
Of course.
05:59 Speaker A
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