1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,920 --> 00:00:13,360 Speaker 2: This is the closing bell on the stock mover's report. 3 00:00:13,600 --> 00:00:16,560 Speaker 2: The company's making moves at the close of US trading 4 00:00:16,800 --> 00:00:22,880 Speaker 2: with Carol Master, Tim Stenebeck, Romain Bostick, and Scarlett Foo earning. 5 00:00:22,880 --> 00:00:24,760 Speaker 3: It's crossing the wire qualcomm. 6 00:00:24,440 --> 00:00:26,639 Speaker 4: Indeed qual common. Let's go right to the outlook. Fourth 7 00:00:26,680 --> 00:00:29,080 Speaker 4: quarter revenue they're looking, folks for ten point three billion 8 00:00:29,120 --> 00:00:31,600 Speaker 4: to eleven point one billion. That's above what the street 9 00:00:31,960 --> 00:00:34,160 Speaker 4: is expecting, at least on the higher end. Ten point 10 00:00:34,200 --> 00:00:37,080 Speaker 4: sixty one billion is what the street's expecting. Fourth quarter 11 00:00:37,120 --> 00:00:39,680 Speaker 4: ad just at EPs more for the outlook two seventy 12 00:00:39,680 --> 00:00:42,280 Speaker 4: five to two ninety five. The estimate on the street 13 00:00:42,320 --> 00:00:46,000 Speaker 4: is for two eighty four. And again seeing let's go 14 00:00:46,080 --> 00:00:48,879 Speaker 4: back to the past quarter. Third quarter just ADPs two 15 00:00:48,920 --> 00:00:51,640 Speaker 4: seventy seven. That's better by a nickel in terms of 16 00:00:51,640 --> 00:00:53,720 Speaker 4: what the street was expecting. And third quarter ad justed 17 00:00:54,160 --> 00:00:56,840 Speaker 4: revenue of ten point thirty seven billion, pretty much in 18 00:00:56,880 --> 00:00:59,040 Speaker 4: line with what the street was expecting. Tim ten point 19 00:00:59,040 --> 00:01:01,480 Speaker 4: thirty three billion, Doc, little change is down about six 20 00:01:01,480 --> 00:01:02,880 Speaker 4: tensive a percent here in the after mark. 21 00:01:02,920 --> 00:01:06,360 Speaker 5: Yeah, pulling up that earnings release here the company actually 22 00:01:06,360 --> 00:01:08,920 Speaker 5: it's not even up yet on their investor relations website. 23 00:01:08,920 --> 00:01:12,600 Speaker 5: That's how early these numbers actually came out. Worth repeating. 24 00:01:12,800 --> 00:01:15,080 Speaker 5: The fourth quarter revenue outlook, though, does seem to be 25 00:01:15,120 --> 00:01:17,280 Speaker 5: what is moving the stock in the after hours, ever 26 00:01:17,360 --> 00:01:20,039 Speaker 5: so slightly, bouncing between gains and losses down about half 27 00:01:20,080 --> 00:01:24,480 Speaker 5: a percentage point. The company says nine million. Excuse me, 28 00:01:24,480 --> 00:01:27,039 Speaker 5: The company says capex at seven hundred and eighty five 29 00:01:27,160 --> 00:01:30,120 Speaker 5: million dollars. The company also said third quarter adjusted revenue 30 00:01:30,120 --> 00:01:32,800 Speaker 5: coming in just above estimates at ten point three seven 31 00:01:32,880 --> 00:01:35,840 Speaker 5: billion dollars. Once again, fourth quarter revenue that outlook ten 32 00:01:35,840 --> 00:01:38,240 Speaker 5: point three billion to eleven point one billion. The estimate 33 00:01:38,520 --> 00:01:40,399 Speaker 5: was for ten point six one billion dollars. 34 00:01:40,520 --> 00:01:40,720 Speaker 3: Yeah. 35 00:01:40,720 --> 00:01:43,520 Speaker 6: The promising sign in there, tim would be that there 36 00:01:43,600 --> 00:01:47,160 Speaker 6: are signs of resilience and growth in the smartphone sector, 37 00:01:47,200 --> 00:01:49,160 Speaker 6: and of course we'll be waiting for a read through 38 00:01:49,200 --> 00:01:52,320 Speaker 6: on that that. When you're thinking about these large technology giants, 39 00:01:52,360 --> 00:01:55,120 Speaker 6: the consumer exposure matters here a little bit. The high 40 00:01:55,240 --> 00:01:58,120 Speaker 6: end phones though, are where they're doing even better, and 41 00:01:58,200 --> 00:02:00,840 Speaker 6: so the question about that case shape for throughout the 42 00:02:00,880 --> 00:02:03,160 Speaker 6: course of this earning season resumes. 43 00:02:03,280 --> 00:02:04,240 Speaker 3: Yeah, and it's kind of interesting too. 44 00:02:04,240 --> 00:02:06,240 Speaker 1: We should point out we're also expecting to get earnings 45 00:02:06,240 --> 00:02:08,760 Speaker 1: out of ARM, the UK chip maker, and of course 46 00:02:08,760 --> 00:02:10,680 Speaker 1: we're waiting on some of the big heavy weights in 47 00:02:10,720 --> 00:02:14,919 Speaker 1: the indexes. That includes Microsoft, Meta, also expecting Ford Albumarl, 48 00:02:15,360 --> 00:02:18,760 Speaker 1: LAMB Research, eBay, and Western Digital, amongst others. 49 00:02:18,800 --> 00:02:19,000 Speaker 2: Guys. 50 00:02:19,080 --> 00:02:21,079 Speaker 4: Yeah, and it's just a reminder that not all tip 51 00:02:21,120 --> 00:02:24,160 Speaker 4: companies are the same. So Quadcom maybe giving a little 52 00:02:24,200 --> 00:02:26,000 Speaker 4: bit of a better forecast, but we've been getting from 53 00:02:26,000 --> 00:02:30,800 Speaker 4: Texas Instruments, Intel, which also gave more cautious outlooks. So 54 00:02:30,840 --> 00:02:32,560 Speaker 4: it's just a reminder you got to take a look 55 00:02:32,560 --> 00:02:34,960 Speaker 4: at each of these companies and what their fundamentals are 56 00:02:35,040 --> 00:02:38,040 Speaker 4: and really what markets they play into forward reporting. 57 00:02:37,720 --> 00:02:39,280 Speaker 5: In just a couple of minutes. We've got to see 58 00:02:39,280 --> 00:02:41,639 Speaker 5: an interview with the company CEO coming up in. 59 00:02:41,880 --> 00:02:43,080 Speaker 3: Just about a half hour. 60 00:02:43,360 --> 00:02:46,959 Speaker 5: We're also expecting of course Meta platforms a little later too. 61 00:02:47,360 --> 00:02:49,119 Speaker 6: Yeah, I've got to say, just to kind of get 62 00:02:49,120 --> 00:02:51,520 Speaker 6: back to what we were talking about with Qualcommer, this 63 00:02:51,560 --> 00:02:53,320 Speaker 6: is a stock that's only been up three point five 64 00:02:53,360 --> 00:02:55,800 Speaker 6: percent this year, so there's a lot of room here 65 00:02:56,120 --> 00:02:58,000 Speaker 6: for the upside of investors choose to read. 66 00:02:57,800 --> 00:02:58,160 Speaker 3: It that way. 67 00:02:58,200 --> 00:03:01,480 Speaker 6: But you're looking at it turn further negative here down 68 00:03:01,639 --> 00:03:02,280 Speaker 6: up three percent. 69 00:03:02,639 --> 00:03:05,040 Speaker 1: All right, Microsoft turnings are crossing the wire right now, 70 00:03:05,080 --> 00:03:07,760 Speaker 1: So to his arm, let's start with Microsoft. The initial 71 00:03:07,840 --> 00:03:10,560 Speaker 1: knee jerk reaction to the upside as the company says 72 00:03:10,600 --> 00:03:13,400 Speaker 1: revenue in the most recent quarter seventy six point four 73 00:03:13,440 --> 00:03:15,640 Speaker 1: to four billion, a beat the street was looking for 74 00:03:15,680 --> 00:03:19,400 Speaker 1: seventy three point nine billion. Intelligent cloud revenue also coming 75 00:03:19,440 --> 00:03:21,840 Speaker 1: in slightly above SIMN it's at twenty nine point eight 76 00:03:21,880 --> 00:03:22,359 Speaker 1: eight billion. 77 00:03:22,639 --> 00:03:24,520 Speaker 3: As you're another cloud revenue. 78 00:03:24,200 --> 00:03:26,840 Speaker 1: XFX up about thirty nine percent in the border. 79 00:03:27,000 --> 00:03:28,040 Speaker 3: The street was looking. 80 00:03:27,840 --> 00:03:31,200 Speaker 1: For a gain of about thirty four percent in the quarter. 81 00:03:31,400 --> 00:03:32,840 Speaker 3: I just want to point out one other quick thing. 82 00:03:32,880 --> 00:03:34,440 Speaker 1: I know it's a much smaller business, but when it 83 00:03:34,480 --> 00:03:37,640 Speaker 1: comes to the productivity and business revenue here you did 84 00:03:37,720 --> 00:03:40,560 Speaker 1: actually see a beat there as well, thirty three billion dollars. 85 00:03:40,720 --> 00:03:43,920 Speaker 1: And on the personal computing side, Tim Carroll, thirteen and 86 00:03:43,920 --> 00:03:46,040 Speaker 1: a half billion, Street was looking for twelve point seven. 87 00:03:46,080 --> 00:03:47,560 Speaker 4: I got to say, you know, I was curious about 88 00:03:47,560 --> 00:03:49,920 Speaker 4: in terms of valuations for this one because Microsoft will 89 00:03:50,640 --> 00:03:52,880 Speaker 4: fascinating to watch the trade here because it's bouncing around. 90 00:03:52,880 --> 00:03:54,320 Speaker 4: I mean, this is a stock that's up twenty two 91 00:03:54,360 --> 00:03:56,480 Speaker 4: percent year to date, and we are seeing off of 92 00:03:56,520 --> 00:03:59,360 Speaker 4: these numbers initially a gain of about five percent, So 93 00:03:59,400 --> 00:04:01,880 Speaker 4: investors definitely liking. 94 00:04:01,560 --> 00:04:02,720 Speaker 3: What they got. 95 00:04:02,800 --> 00:04:05,000 Speaker 4: I've got to say that as you're and other cloud revenue, 96 00:04:05,000 --> 00:04:08,280 Speaker 4: maybe that's what's catching their attention. Up almost forty percent 97 00:04:08,360 --> 00:04:10,760 Speaker 4: or up thirty nine percent, and that is easily beating 98 00:04:10,760 --> 00:04:12,680 Speaker 4: the estimate of thirty four point two percent. 99 00:04:12,960 --> 00:04:16,720 Speaker 5: Yeah, Satinadella, Chairman and CEO of Microsoft, saying, quote, cloud 100 00:04:16,760 --> 00:04:19,760 Speaker 5: and AI is the driving force of business transformation across 101 00:04:19,839 --> 00:04:22,920 Speaker 5: every industry and sector. We're innovating across the tech stack 102 00:04:22,960 --> 00:04:25,560 Speaker 5: to help customers adapt and grow in this new era. 103 00:04:25,640 --> 00:04:27,920 Speaker 5: And this year as you're surpassed seventy five billion dollars 104 00:04:27,960 --> 00:04:31,359 Speaker 5: in revenue up thirty four percent, driven by growth across 105 00:04:31,440 --> 00:04:33,159 Speaker 5: all workloads. 106 00:04:32,760 --> 00:04:36,120 Speaker 6: And even beyond that, I'm looking at cap X numbers 107 00:04:36,200 --> 00:04:38,840 Speaker 6: as well that came in for the quarter at least 108 00:04:39,200 --> 00:04:42,919 Speaker 6: lower than expected. So that outperformance comes on the heels 109 00:04:43,200 --> 00:04:45,839 Speaker 6: of not overspending either. I know a lot of investors 110 00:04:45,880 --> 00:04:47,560 Speaker 6: are out there looking to make sure that they're getting 111 00:04:47,560 --> 00:04:50,680 Speaker 6: a return on their buck, and you are seeing Microsoft 112 00:04:50,800 --> 00:04:54,440 Speaker 6: just surging after this report because to your point, Carol Azora. 113 00:04:54,400 --> 00:04:56,480 Speaker 3: Was really a big part of. 114 00:04:56,440 --> 00:04:59,160 Speaker 6: What investors were looking for and making sure that more 115 00:04:59,200 --> 00:05:01,560 Speaker 6: and more of that revenue was being driven by the 116 00:05:01,800 --> 00:05:02,520 Speaker 6: AI initiative. 117 00:05:02,600 --> 00:05:04,040 Speaker 4: And I guess I would say when it comes to AI, 118 00:05:04,160 --> 00:05:06,640 Speaker 4: got to think about the Microsoft relationship with chat GPT. 119 00:05:07,040 --> 00:05:09,960 Speaker 4: You know, they are kind of the king queen, if 120 00:05:09,960 --> 00:05:11,720 Speaker 4: you will, in terms of what has set us going 121 00:05:11,720 --> 00:05:12,680 Speaker 4: in terms of AI. 122 00:05:13,600 --> 00:05:15,120 Speaker 3: We've got forward crossing the bloueb. 123 00:05:15,000 --> 00:05:16,640 Speaker 1: Yeah, let's go to Ford for a second. We'll get 124 00:05:16,640 --> 00:05:19,440 Speaker 1: back to Microsoft. Those earnings crossing the wire. Remember, the 125 00:05:19,440 --> 00:05:22,760 Speaker 1: company had removed its guidance a quarter ago. It is 126 00:05:22,800 --> 00:05:26,040 Speaker 1: now reinstating that guidance for the full year, and it 127 00:05:26,080 --> 00:05:27,840 Speaker 1: does appear that guidance is lower than the one it 128 00:05:27,880 --> 00:05:30,760 Speaker 1: gave before, saying that it expects earnings before interest in 129 00:05:30,800 --> 00:05:33,360 Speaker 1: taxes so e BIT on an adjusted basis six point 130 00:05:33,400 --> 00:05:36,200 Speaker 1: five to seven point five billion dollars. The low end 131 00:05:36,200 --> 00:05:38,680 Speaker 1: of that range is slightly below the average street estimates, 132 00:05:38,839 --> 00:05:41,760 Speaker 1: which was for six point eighty four billion. Also interesting, 133 00:05:41,880 --> 00:05:44,480 Speaker 1: the company is trying to quantify the impact from tariffs, 134 00:05:44,520 --> 00:05:47,599 Speaker 1: saying they see a tariff headwind of about two billion dollars. 135 00:05:47,600 --> 00:05:49,839 Speaker 1: That's up from a previous guidance of about one and 136 00:05:49,880 --> 00:05:52,520 Speaker 1: a half billion dollars, though they did point out that 137 00:05:52,520 --> 00:05:54,119 Speaker 1: that number could be as high as a three billion, 138 00:05:54,160 --> 00:05:55,800 Speaker 1: though they expect about one billion. 139 00:05:55,520 --> 00:05:57,520 Speaker 3: Dollars in mitigation. 140 00:05:57,640 --> 00:05:59,560 Speaker 1: If you will not quite sure what that means, that 141 00:05:59,680 --> 00:06:01,600 Speaker 1: brings back down to two billion dollars. 142 00:06:01,640 --> 00:06:04,200 Speaker 5: Well, speaking of high numbers, Meta share surging in the 143 00:06:04,240 --> 00:06:06,919 Speaker 5: AFT hours up about three point six percent. The company 144 00:06:06,960 --> 00:06:09,840 Speaker 5: sees third quarter revenue at forty seven and a half 145 00:06:09,920 --> 00:06:13,120 Speaker 5: billion dollars to fifty billion dollars. The estimate was for 146 00:06:13,120 --> 00:06:17,080 Speaker 5: forty six point two billion dollars. The company sees total 147 00:06:17,120 --> 00:06:18,839 Speaker 5: revenue for the year to be in the range of 148 00:06:18,880 --> 00:06:22,320 Speaker 5: forty seven point five to fifty billion dollars. It sees 149 00:06:22,800 --> 00:06:25,160 Speaker 5: expenses to be one hundred and fourteen billion to one 150 00:06:25,200 --> 00:06:28,800 Speaker 5: hundred and eighteen billion, so expenses were expected to be 151 00:06:28,800 --> 00:06:32,039 Speaker 5: one hundred and thirteen to one hundred and eighteen billion dollars. 152 00:06:32,520 --> 00:06:36,080 Speaker 5: Second quarter revenue once again beating estimate second quarter EPs 153 00:06:36,360 --> 00:06:39,080 Speaker 5: coming in at seven dollars and fourteen cents. That's massively 154 00:06:39,080 --> 00:06:41,839 Speaker 5: above expectations of five dollars and eighty nine cents. Second 155 00:06:41,920 --> 00:06:45,080 Speaker 5: quarter revenue expected to be at forty four point eight 156 00:06:45,160 --> 00:06:47,760 Speaker 5: three billion forty seven point five to two billion. Is 157 00:06:47,800 --> 00:06:51,120 Speaker 5: the print share surging in the after hours up six 158 00:06:51,160 --> 00:06:53,160 Speaker 5: point seven percent in climbing. 159 00:06:53,320 --> 00:06:55,520 Speaker 4: Yeah, and that's after Meta has been quite an now performer. 160 00:06:55,560 --> 00:06:57,599 Speaker 4: It's up about nineteen percent year to date. Hey, let's 161 00:06:57,600 --> 00:07:01,680 Speaker 4: go to some commentary and context saying they expect third 162 00:07:01,720 --> 00:07:03,760 Speaker 4: quarter twenty twenty five total revenue to be in the 163 00:07:03,839 --> 00:07:06,840 Speaker 4: range of forty seven point five to fifty point five billion, 164 00:07:07,279 --> 00:07:09,600 Speaker 4: And they say, while we are not providing an outlook 165 00:07:09,640 --> 00:07:11,880 Speaker 4: for the fourth quarter revenue, we would expect our year 166 00:07:11,920 --> 00:07:13,960 Speaker 4: over year growth rate in the fourth quarter of twenty 167 00:07:14,000 --> 00:07:17,200 Speaker 4: twenty five to be slower than the third quarter as 168 00:07:17,200 --> 00:07:19,720 Speaker 4: we lap a period of stronger growth in the fourth 169 00:07:19,800 --> 00:07:23,200 Speaker 4: quarter of twenty twenty four. So they expect full year 170 00:07:23,240 --> 00:07:25,680 Speaker 4: twenty twenty five total expenses to be in the range 171 00:07:25,680 --> 00:07:29,280 Speaker 4: of one hundred and fourteen to one hundred and eighteen billions, 172 00:07:29,360 --> 00:07:32,360 Speaker 4: So that's narrowed from their prior outlook of one thirteen 173 00:07:32,400 --> 00:07:34,680 Speaker 4: to oney eighteen billion and reflecting a growth rate of 174 00:07:34,720 --> 00:07:37,800 Speaker 4: twenty to twenty four percent year over year, And currently 175 00:07:37,880 --> 00:07:42,840 Speaker 4: expect twenty twenty five capex including principal payments on finance 176 00:07:43,280 --> 00:07:45,080 Speaker 4: leases to be in the range of sixty six to 177 00:07:45,120 --> 00:07:48,280 Speaker 4: seventy two billion, narrowed from their prior outlook of sixty 178 00:07:48,280 --> 00:07:51,440 Speaker 4: four to seventy two billion, and up approximately thirty billion 179 00:07:51,520 --> 00:07:53,120 Speaker 4: year over year at the midpoint. 180 00:07:53,280 --> 00:07:55,280 Speaker 6: I also want to look at ARM here as well, 181 00:07:55,320 --> 00:07:59,680 Speaker 6: because they're forecasting profit lower than expected, they're ramping up spending. Here. 182 00:08:00,120 --> 00:08:02,320 Speaker 6: You do see shares down or more than five point 183 00:08:02,320 --> 00:08:06,000 Speaker 6: seven percent after the market after saying that fiscal second 184 00:08:06,080 --> 00:08:09,239 Speaker 6: quarter earnings will be twenty nine cents to thirty seven 185 00:08:09,280 --> 00:08:13,400 Speaker 6: cents to share. Analysts had seen thirty five cents on average. 186 00:08:13,440 --> 00:08:16,679 Speaker 6: So there you go. Softer profit expectations there. 187 00:08:16,560 --> 00:08:18,880 Speaker 1: All Right, recoil quickly eBay those shares higher in the 188 00:08:18,920 --> 00:08:21,360 Speaker 1: after hours trade. Guidance for the third quarter of two 189 00:08:21,400 --> 00:08:23,680 Speaker 1: point sixty nine to two point seven to four billion, 190 00:08:23,880 --> 00:08:26,360 Speaker 1: above street estimates on both the low and the high 191 00:08:26,440 --> 00:08:28,520 Speaker 1: end of the range. For the most recent quarter, the 192 00:08:28,560 --> 00:08:31,000 Speaker 1: company did beat on both the top and bottom line, 193 00:08:31,040 --> 00:08:34,040 Speaker 1: revenue growing six percent tim to two point seven three billion. 194 00:08:34,080 --> 00:08:35,960 Speaker 5: All Right, shares a robin hood up four percent in 195 00:08:36,000 --> 00:08:37,960 Speaker 5: the after hours. The company is not giving a twenty 196 00:08:38,000 --> 00:08:41,480 Speaker 5: twenty five outlook for operating expenses, but second quarter adjusted 197 00:08:41,559 --> 00:08:44,040 Speaker 5: EBADAH was a big beat, coming in at five hundred 198 00:08:44,080 --> 00:08:47,200 Speaker 5: and forty nine million dollars. Second quarter net revenue also beat, 199 00:08:47,200 --> 00:08:49,800 Speaker 5: at nine hundred and eighty nine million dollars. Once again, 200 00:08:49,880 --> 00:08:51,880 Speaker 5: shares hired by about four and a half percent. 201 00:08:53,200 --> 00:08:57,200 Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with 202 00:08:57,280 --> 00:08:59,840 Speaker 2: us throughout the day for the latest roundup of companies 203 00:09:00,000 --> 00:09:03,040 Speaker 2: making news on Wall Street and for the latest market 204 00:09:03,080 --> 00:09:07,520 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 205 00:09:07,640 --> 00:09:11,120 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 206 00:09:11,200 --> 00:09:12,679 Speaker 2: the Bloomberg Business app.