WEBVTT - Alphabet and Microsoft Climb; AI Spending Sends Meta Lower

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move today.

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<v Speaker 1>I'm Nathan Hager, joined by Bloomberg's Dan Curtis. As the

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<v Speaker 1>flood of earnings continues. Before we get to the stocks

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<v Speaker 1>that are reporting this morning, we got to talk about

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<v Speaker 1>four of the mag seven.

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<v Speaker 2>Kind of a mixed reaction.

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<v Speaker 3>Dan, Good morning, Good morning. It is a mixed reaction

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<v Speaker 3>between the four companies. We have seven hundred and twenty

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<v Speaker 3>five billion dollars of pledged capex this year, and today's

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<v Speaker 3>reaction is telling us what the market thinks of those plans.

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<v Speaker 3>So first up, we have Alphabet trading under ticker Googl.

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<v Speaker 3>Those shares are up seven percent. The company behind Google's

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<v Speaker 3>first quarter revenue came at ninety five billion dollars, topping estimates.

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<v Speaker 3>Very importantly, the cloud business grew at a record sixty

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<v Speaker 3>three percent, seeing twenty billion dollars and topping estimates. That's

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<v Speaker 3>a positive sign of return on AI spending. Shares are up.

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<v Speaker 3>The company expects to spend up to one hundred and

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<v Speaker 3>ninety billion dollars on CAPEX this year, but markets are

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<v Speaker 3>seeing that being put to good use. Meta on the

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<v Speaker 3>other hand, out of the four, this one's leading to

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<v Speaker 3>the downside. Those shares are down at nine percent in

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<v Speaker 3>the pre market. That company liftingkapex plans to one hundred

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<v Speaker 3>and forty five billion dollars from one hundred and twenty five.

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<v Speaker 3>The increase driven partly by conviction that the AI strategy

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<v Speaker 3>is paying off, but they're also noting higher component parts costs,

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<v Speaker 3>especially in memory. It's you know as it is. The

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<v Speaker 3>concerns are that the investment to play catch up in

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<v Speaker 3>AI won't pay off, and one question Zuckerberg was unable

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<v Speaker 3>to provide details on how Meta will make returns on

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<v Speaker 3>AI spending. That those shares getting punished in pre market.

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<v Speaker 3>Microsoft also down two percent. The company's anticipating quote modest

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<v Speaker 3>acceleration end quote, and it's a zor cloud unit in

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<v Speaker 3>the second half of this year. That's a key measure

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<v Speaker 3>of its AI strategy. That comes as both Amazon and

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<v Speaker 3>Alphabet projected stronger growth. So Microsoft seeing a little bit

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<v Speaker 3>less return on that spending, and it is planning to

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<v Speaker 3>spend big. It's saying up to one hundred and ninety

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<v Speaker 3>billion dollars in CAPEX. Finally, to round up the seven

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<v Speaker 3>hundred and twenty five billion dollars Amazon, those shares are

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<v Speaker 3>up two percent. Amazon Web Services known as AWS and

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<v Speaker 3>its KEYAI measure posted fastest growth rate in twenty twenty two,

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<v Speaker 3>so again CAPECS paying off. There. That company has promised

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<v Speaker 3>to spend about up to two hundred billion dollars this year.

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<v Speaker 3>It now has a three hundred and sixty four billion

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<v Speaker 3>dollar contract backlog, a lot of that coming from Open

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<v Speaker 3>Ai and Anthropic, so that company is bringing customers even

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<v Speaker 3>as it spends big.

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<v Speaker 1>All right, well, we have just time to talk about

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<v Speaker 1>some of the stocks that have reported this morning. Looks

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<v Speaker 1>like a pretty good reaction to Eli Lilly's results.

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<v Speaker 3>That's right. Tick Our l Y is up six percent

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<v Speaker 3>in the pre market. The company is raising its full

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<v Speaker 3>year revenue guidance, now projecting up to eighty five billion dollars.

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<v Speaker 3>It's also adding two dollars per share onto its EPs

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<v Speaker 3>guidance top end thirty five dollars per share. One Q

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<v Speaker 3>revenue came in with a beat. Manjaro sales were eight

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<v Speaker 3>point six billion dollars higher than estimates, over forty percent

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<v Speaker 3>of total sales. Add in another GLP one product, zep Bound.

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<v Speaker 3>Those GLP one products were nearly two thirds of the

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<v Speaker 3>company's total revenue for the quarter.

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<v Speaker 1>And hot on Eli Lilly's heels as Caterpillar.

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<v Speaker 3>Yeah, that is up six percent. It does make you know,

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<v Speaker 3>big machines. It also makes energy. Those shares up six

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<v Speaker 3>percent as machinery power and energy sales of sixteen and

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<v Speaker 3>a half billion dollars top estimates by a billion dollars.

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<v Speaker 3>That part of the business sales generators, engines, and gas turbines.

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<v Speaker 3>That is a hot space in the AI trade because

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<v Speaker 3>those provide electricity to the energy intensive data center. Shares

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<v Speaker 3>have already doubled over the past year.

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<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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