WEBVTT - Microsoft, Meta, Alphabet Post Earnings

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

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

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

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<v Speaker 3>Let's take a look at some stocks on the move today.

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<v Speaker 3>We're joined by Bloomberg News Process that reporter Emily Graffeo.

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<v Speaker 3>Emily a lot moving in the out hours.

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<v Speaker 1>We have a lot of the big tech stocks reporting earnings.

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<v Speaker 1>So let's start with Microsoft Tiger MSFT. This stock was

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<v Speaker 1>down as much as four percent in after hours. Now

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<v Speaker 1>it's only down about one, well two point five percent

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<v Speaker 1>in just the first hour of the post market. The earnings,

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<v Speaker 1>EPs and sales were above estimates, and then the cloud

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<v Speaker 1>service revenue did beat average the average ANELES estimates, so

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<v Speaker 1>revenue for the first quarter seventy seven point six billion

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<v Speaker 1>versus estimates of about seventy five. The EPs also came

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<v Speaker 1>in above. I mean, overall here the stock is down,

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<v Speaker 1>but when you consider the headlines that we're getting out

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<v Speaker 1>of some other tech companies for this earnings, I would say,

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<v Speaker 1>so far, so good for Microsoft first quarter.

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<v Speaker 4>As you said cloud first quarter, as you're another cloud

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<v Speaker 4>revenue x currency up thirty nine percent. The estimate was

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<v Speaker 4>thirty seven point one percent. Our own ana agronosig that's

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<v Speaker 4>a good number he did.

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<v Speaker 3>Yeah, he's out with a note and he's going to

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<v Speaker 3>be listening on this call, but out with a note

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<v Speaker 3>right now. It says Microsoft's fiscal first quarter capital spending

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<v Speaker 3>including lisas came in at thirty five thirty four point

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<v Speaker 3>nine billion, much higher than CONSEETSUS thirty point one billion dollars.

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<v Speaker 3>And though this metric may raise concern for some, we

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<v Speaker 3>see it as a signal of rising AI workload demand.

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<v Speaker 3>That number is good news to honorog in the team.

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<v Speaker 4>And I guess as long as the demand is there, right, like,

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<v Speaker 4>the spend makes sense. Where do you want to go next?

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<v Speaker 5>Okay? Google?

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<v Speaker 1>Okay, so ticker Gooogl. We're talking about Alphabet here, the

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<v Speaker 1>parent company of Google.

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<v Speaker 5>Rising.

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<v Speaker 1>It was up five percent, it is now up. I

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<v Speaker 1>know it's moving around a little, it's moving around a lot. Still,

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<v Speaker 1>it's still twenty five percent.

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<v Speaker 5>Yeah.

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<v Speaker 1>In the post market reported quarterly sales and beat analysts estimates.

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<v Speaker 1>We were talking about Microsoft's cloud unit, but the cloud

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<v Speaker 1>unit over at Alphabet also doing well, which is growing

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<v Speaker 1>as AI startups seek Google support and computing power. So

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<v Speaker 1>the revenue for the third quarter beat estimates, coming in

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<v Speaker 1>at one hundred and two point three five billion. The

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<v Speaker 1>third quarter EPs also beat estimates two dollars eighty seven

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<v Speaker 1>cents a share, and they boosted their full year capex projection.

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<v Speaker 1>So they see fullyar spending on capital expenditures ninety one

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<v Speaker 1>billion dollars to ninety three billion dollars they had seen

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<v Speaker 1>eighty five billion.

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<v Speaker 5>This is all on that continued.

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<v Speaker 1>Spending on AI data centers that they need to do

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<v Speaker 1>and custom chips. This is the big story I would

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<v Speaker 1>say of tech stocks in twenty twenty five, of like,

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<v Speaker 1>how much are you spending on AI? When is it

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<v Speaker 1>going to pay off? What exactly are you buying? What

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<v Speaker 1>are the projects?

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<v Speaker 5>So listening for more of those markets.

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<v Speaker 3>Well, sometimes investors are cool with spending money on this stuff.

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<v Speaker 3>Sometimes they don't react necessarily the way you want them

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<v Speaker 3>to if you're long a stock.

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<v Speaker 5>Yeah, so sometimes they don't.

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<v Speaker 1>I think we're all thinking of Meta here Tickerneta. That

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<v Speaker 1>stock is down over seven percent after reporting earnings, and

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<v Speaker 1>this is coming after Meta said it expects total expenses

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<v Speaker 1>to significantly increase in twenty twenty six as the company

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<v Speaker 1>has to spend on data centers and other equipment to

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<v Speaker 1>fuel the efforts in AI.

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<v Speaker 5>You have to wonder if there were some specifics.

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<v Speaker 1>About the spending plan that maybe investors are picking up

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<v Speaker 1>on that it was different, that they didn't like that

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<v Speaker 1>versus Google Googles. But yeah, I mean it's a bit

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<v Speaker 1>confusing here to see the stock down on this news

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<v Speaker 1>and then Alphabet obviously doing well on their promises to

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<v Speaker 1>spend more on AI.

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<v Speaker 4>Yeah, it's kind of fascinating, right, like the stories being

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<v Speaker 4>told by each I mean, keep in mind, Meta is

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<v Speaker 4>up almost thirty percent here in twenty twenty five, Alphabet

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<v Speaker 4>is up about forty five percent year right in twenty

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<v Speaker 4>twenty five, and like, what's Microsoft? Microsoft in is up

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<v Speaker 4>almost thirty percent this year. I mean, all these guys

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<v Speaker 4>have been on fire.

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<v Speaker 1>And we know that, and we also we are getting

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<v Speaker 1>more headlines out of Meta that the company reported third

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<v Speaker 1>quarter net income of two point seventy one billion, which

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<v Speaker 1>included a non cash income tax charge of fifteen point

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<v Speaker 1>nine billion due to the implementation of the tax bill

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<v Speaker 1>that was signed into law in July. So again, this

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<v Speaker 1>is something that I don't think investors were expecting out

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<v Speaker 1>of the earnings, so could be weighing on the stock

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<v Speaker 1>as well that they're reading headlines about a tax charge

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<v Speaker 1>and these headlines about expenses increasing. So at least for

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<v Speaker 1>the postmarket, that stock is down after those earnings.

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<v Speaker 5>I will say too.

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<v Speaker 4>We're getting some calls on the live blog, Meta assuring

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<v Speaker 4>analysts on the call that it still expects significant cash

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<v Speaker 4>tax savings for the remainder of the year despite the

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<v Speaker 4>hefty tax charge they are talking about. Zuckerberg signaling that

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<v Speaker 4>Meta may have some news coming on its AI models

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<v Speaker 4>and products, saying that his team has been heads down

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<v Speaker 4>working on the next generation and that he's looking forward

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<v Speaker 4>to sharing more on that over the coming months. For

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<v Speaker 4>those who are on radio right now, Tim is playing

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<v Speaker 4>around with his glasses.

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<v Speaker 3>Because that's what Mark Zuckerberg thinks the future is. He

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<v Speaker 3>may have renamed the company Meta Platforms, but he's really

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<v Speaker 3>leaning into augmented reality and virtual reality and meta ray bands. Yeah,

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<v Speaker 3>called it out and then release, Yeah, you're not wearing them.

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<v Speaker 1>I'm not, but you know it is fun if a

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<v Speaker 1>friend is wearing them and then they take a photo

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<v Speaker 1>of you and it's like.

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<v Speaker 3>Oh, Sebastian, one of our producers does that at some

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<v Speaker 3>of some our events. It's pretty cool.

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<v Speaker 4>Yeah, he likes those meta ray bands. Mark Zuckerberg saying

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<v Speaker 4>on the call that he's investing in computing capacity based

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<v Speaker 4>on his most optimistic forecast for achieving super intelligence.

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<v Speaker 1>Yeah, and this is like hundreds of billions a superinturigence

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<v Speaker 1>come of a cave.

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