1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,600 --> 00:00:18,640 Speaker 3: Let's take a look at some stocks on the move today. 5 00:00:18,680 --> 00:00:22,040 Speaker 3: We're joined by Bloomberg News Process that reporter Emily Graffeo. 6 00:00:22,320 --> 00:00:24,239 Speaker 3: Emily a lot moving in the out hours. 7 00:00:24,400 --> 00:00:27,280 Speaker 1: We have a lot of the big tech stocks reporting earnings. 8 00:00:27,280 --> 00:00:31,120 Speaker 1: So let's start with Microsoft Tiger MSFT. This stock was 9 00:00:31,160 --> 00:00:34,159 Speaker 1: down as much as four percent in after hours. Now 10 00:00:34,159 --> 00:00:37,200 Speaker 1: it's only down about one, well two point five percent 11 00:00:37,520 --> 00:00:42,000 Speaker 1: in just the first hour of the post market. The earnings, 12 00:00:42,640 --> 00:00:46,040 Speaker 1: EPs and sales were above estimates, and then the cloud 13 00:00:46,120 --> 00:00:50,199 Speaker 1: service revenue did beat average the average ANELES estimates, so 14 00:00:50,280 --> 00:00:53,440 Speaker 1: revenue for the first quarter seventy seven point six billion 15 00:00:53,760 --> 00:00:57,680 Speaker 1: versus estimates of about seventy five. The EPs also came 16 00:00:57,720 --> 00:01:01,240 Speaker 1: in above. I mean, overall here the stock is down, 17 00:01:01,520 --> 00:01:04,000 Speaker 1: but when you consider the headlines that we're getting out 18 00:01:04,000 --> 00:01:06,880 Speaker 1: of some other tech companies for this earnings, I would say, 19 00:01:07,520 --> 00:01:09,679 Speaker 1: so far, so good for Microsoft first quarter. 20 00:01:09,680 --> 00:01:12,680 Speaker 4: As you said cloud first quarter, as you're another cloud 21 00:01:12,680 --> 00:01:17,080 Speaker 4: revenue x currency up thirty nine percent. The estimate was 22 00:01:17,080 --> 00:01:19,959 Speaker 4: thirty seven point one percent. Our own ana agronosig that's 23 00:01:19,959 --> 00:01:20,959 Speaker 4: a good number he did. 24 00:01:21,040 --> 00:01:22,920 Speaker 3: Yeah, he's out with a note and he's going to 25 00:01:22,920 --> 00:01:24,280 Speaker 3: be listening on this call, but out with a note 26 00:01:24,360 --> 00:01:27,160 Speaker 3: right now. It says Microsoft's fiscal first quarter capital spending 27 00:01:27,160 --> 00:01:29,960 Speaker 3: including lisas came in at thirty five thirty four point 28 00:01:30,040 --> 00:01:34,200 Speaker 3: nine billion, much higher than CONSEETSUS thirty point one billion dollars. 29 00:01:34,480 --> 00:01:37,360 Speaker 3: And though this metric may raise concern for some, we 30 00:01:37,440 --> 00:01:40,920 Speaker 3: see it as a signal of rising AI workload demand. 31 00:01:41,080 --> 00:01:43,319 Speaker 3: That number is good news to honorog in the team. 32 00:01:43,360 --> 00:01:45,280 Speaker 4: And I guess as long as the demand is there, right, like, 33 00:01:45,600 --> 00:01:48,040 Speaker 4: the spend makes sense. Where do you want to go next? 34 00:01:48,160 --> 00:01:49,000 Speaker 5: Okay? Google? 35 00:01:49,200 --> 00:01:53,440 Speaker 1: Okay, so ticker Gooogl. We're talking about Alphabet here, the 36 00:01:53,480 --> 00:01:55,280 Speaker 1: parent company of Google. 37 00:01:55,880 --> 00:01:56,320 Speaker 5: Rising. 38 00:01:56,920 --> 00:02:03,160 Speaker 1: It was up five percent, it is now up. I 39 00:02:03,200 --> 00:02:05,360 Speaker 1: know it's moving around a little, it's moving around a lot. Still, 40 00:02:05,520 --> 00:02:06,919 Speaker 1: it's still twenty five percent. 41 00:02:07,000 --> 00:02:07,720 Speaker 5: Yeah. 42 00:02:07,720 --> 00:02:11,359 Speaker 1: In the post market reported quarterly sales and beat analysts estimates. 43 00:02:12,040 --> 00:02:14,560 Speaker 1: We were talking about Microsoft's cloud unit, but the cloud 44 00:02:14,639 --> 00:02:17,919 Speaker 1: unit over at Alphabet also doing well, which is growing 45 00:02:17,960 --> 00:02:22,600 Speaker 1: as AI startups seek Google support and computing power. So 46 00:02:22,680 --> 00:02:24,920 Speaker 1: the revenue for the third quarter beat estimates, coming in 47 00:02:24,960 --> 00:02:27,840 Speaker 1: at one hundred and two point three five billion. The 48 00:02:27,880 --> 00:02:30,839 Speaker 1: third quarter EPs also beat estimates two dollars eighty seven 49 00:02:30,919 --> 00:02:35,840 Speaker 1: cents a share, and they boosted their full year capex projection. 50 00:02:36,120 --> 00:02:39,440 Speaker 1: So they see fullyar spending on capital expenditures ninety one 51 00:02:39,480 --> 00:02:43,200 Speaker 1: billion dollars to ninety three billion dollars they had seen 52 00:02:43,320 --> 00:02:44,680 Speaker 1: eighty five billion. 53 00:02:45,240 --> 00:02:47,440 Speaker 5: This is all on that continued. 54 00:02:47,000 --> 00:02:49,640 Speaker 1: Spending on AI data centers that they need to do 55 00:02:50,000 --> 00:02:52,280 Speaker 1: and custom chips. This is the big story I would 56 00:02:52,280 --> 00:02:55,920 Speaker 1: say of tech stocks in twenty twenty five, of like, 57 00:02:56,000 --> 00:02:57,960 Speaker 1: how much are you spending on AI? When is it 58 00:02:58,000 --> 00:03:02,200 Speaker 1: going to pay off? What exactly are you buying? What 59 00:03:02,280 --> 00:03:03,160 Speaker 1: are the projects? 60 00:03:03,160 --> 00:03:05,760 Speaker 5: So listening for more of those markets. 61 00:03:05,840 --> 00:03:10,080 Speaker 3: Well, sometimes investors are cool with spending money on this stuff. 62 00:03:10,120 --> 00:03:13,400 Speaker 3: Sometimes they don't react necessarily the way you want them 63 00:03:13,400 --> 00:03:14,720 Speaker 3: to if you're long a stock. 64 00:03:14,560 --> 00:03:16,400 Speaker 5: Yeah, so sometimes they don't. 65 00:03:16,760 --> 00:03:20,880 Speaker 1: I think we're all thinking of Meta here Tickerneta. That 66 00:03:20,919 --> 00:03:24,320 Speaker 1: stock is down over seven percent after reporting earnings, and 67 00:03:24,360 --> 00:03:27,840 Speaker 1: this is coming after Meta said it expects total expenses 68 00:03:27,880 --> 00:03:32,400 Speaker 1: to significantly increase in twenty twenty six as the company 69 00:03:32,440 --> 00:03:35,000 Speaker 1: has to spend on data centers and other equipment to 70 00:03:35,920 --> 00:03:37,320 Speaker 1: fuel the efforts in AI. 71 00:03:38,400 --> 00:03:41,240 Speaker 5: You have to wonder if there were some specifics. 72 00:03:40,600 --> 00:03:45,160 Speaker 1: About the spending plan that maybe investors are picking up 73 00:03:45,200 --> 00:03:47,560 Speaker 1: on that it was different, that they didn't like that 74 00:03:47,680 --> 00:03:51,080 Speaker 1: versus Google Googles. But yeah, I mean it's a bit 75 00:03:51,120 --> 00:03:55,200 Speaker 1: confusing here to see the stock down on this news 76 00:03:55,240 --> 00:03:57,920 Speaker 1: and then Alphabet obviously doing well on their promises to 77 00:03:57,920 --> 00:03:58,720 Speaker 1: spend more on AI. 78 00:03:58,960 --> 00:04:03,280 Speaker 4: Yeah, it's kind of fascinating, right, like the stories being 79 00:04:03,280 --> 00:04:05,680 Speaker 4: told by each I mean, keep in mind, Meta is 80 00:04:05,840 --> 00:04:11,080 Speaker 4: up almost thirty percent here in twenty twenty five, Alphabet 81 00:04:11,320 --> 00:04:14,480 Speaker 4: is up about forty five percent year right in twenty 82 00:04:14,560 --> 00:04:18,160 Speaker 4: twenty five, and like, what's Microsoft? Microsoft in is up 83 00:04:18,160 --> 00:04:20,760 Speaker 4: almost thirty percent this year. I mean, all these guys 84 00:04:20,800 --> 00:04:21,680 Speaker 4: have been on fire. 85 00:04:21,480 --> 00:04:23,840 Speaker 1: And we know that, and we also we are getting 86 00:04:23,920 --> 00:04:26,880 Speaker 1: more headlines out of Meta that the company reported third 87 00:04:26,960 --> 00:04:30,440 Speaker 1: quarter net income of two point seventy one billion, which 88 00:04:30,480 --> 00:04:34,880 Speaker 1: included a non cash income tax charge of fifteen point 89 00:04:35,000 --> 00:04:38,360 Speaker 1: nine billion due to the implementation of the tax bill 90 00:04:38,400 --> 00:04:40,520 Speaker 1: that was signed into law in July. So again, this 91 00:04:40,560 --> 00:04:42,640 Speaker 1: is something that I don't think investors were expecting out 92 00:04:42,680 --> 00:04:45,560 Speaker 1: of the earnings, so could be weighing on the stock 93 00:04:45,720 --> 00:04:49,039 Speaker 1: as well that they're reading headlines about a tax charge 94 00:04:49,400 --> 00:04:53,680 Speaker 1: and these headlines about expenses increasing. So at least for 95 00:04:53,720 --> 00:04:56,440 Speaker 1: the postmarket, that stock is down after those earnings. 96 00:04:56,440 --> 00:04:57,080 Speaker 5: I will say too. 97 00:04:57,120 --> 00:05:00,000 Speaker 4: We're getting some calls on the live blog, Meta assuring 98 00:05:00,040 --> 00:05:03,200 Speaker 4: analysts on the call that it still expects significant cash 99 00:05:03,320 --> 00:05:05,640 Speaker 4: tax savings for the remainder of the year despite the 100 00:05:05,640 --> 00:05:14,280 Speaker 4: hefty tax charge they are talking about. Zuckerberg signaling that 101 00:05:14,320 --> 00:05:16,840 Speaker 4: Meta may have some news coming on its AI models 102 00:05:16,839 --> 00:05:20,080 Speaker 4: and products, saying that his team has been heads down 103 00:05:20,120 --> 00:05:22,880 Speaker 4: working on the next generation and that he's looking forward 104 00:05:22,960 --> 00:05:25,680 Speaker 4: to sharing more on that over the coming months. For 105 00:05:25,720 --> 00:05:27,680 Speaker 4: those who are on radio right now, Tim is playing 106 00:05:27,720 --> 00:05:29,000 Speaker 4: around with his glasses. 107 00:05:28,600 --> 00:05:31,000 Speaker 3: Because that's what Mark Zuckerberg thinks the future is. He 108 00:05:31,040 --> 00:05:34,000 Speaker 3: may have renamed the company Meta Platforms, but he's really 109 00:05:34,120 --> 00:05:38,360 Speaker 3: leaning into augmented reality and virtual reality and meta ray bands. Yeah, 110 00:05:38,560 --> 00:05:41,960 Speaker 3: called it out and then release, Yeah, you're not wearing them. 111 00:05:42,000 --> 00:05:44,000 Speaker 1: I'm not, but you know it is fun if a 112 00:05:44,000 --> 00:05:45,680 Speaker 1: friend is wearing them and then they take a photo 113 00:05:45,720 --> 00:05:47,000 Speaker 1: of you and it's like. 114 00:05:46,960 --> 00:05:49,680 Speaker 3: Oh, Sebastian, one of our producers does that at some 115 00:05:49,720 --> 00:05:51,039 Speaker 3: of some our events. It's pretty cool. 116 00:05:51,440 --> 00:05:54,200 Speaker 4: Yeah, he likes those meta ray bands. Mark Zuckerberg saying 117 00:05:54,240 --> 00:05:56,479 Speaker 4: on the call that he's investing in computing capacity based 118 00:05:56,520 --> 00:06:00,000 Speaker 4: on his most optimistic forecast for achieving super intelligence. 119 00:06:00,279 --> 00:06:02,800 Speaker 1: Yeah, and this is like hundreds of billions a superinturigence 120 00:06:02,839 --> 00:06:03,400 Speaker 1: come of a cave. 121 00:06:04,640 --> 00:06:08,880 Speaker 2: The Stockmover's report from Bloomberg Radio. 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