Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move today.
Speaker 3: We're joined by Bloomberg News Process that reporter Emily Graffeo.
Speaker 3: Emily a lot moving in the out hours.
Speaker 1: We have a lot of the big tech stocks reporting earnings.
Speaker 1: So let's start with Microsoft Tiger MSFT. This stock was
Speaker 1: down as much as four percent in after hours. Now
Speaker 1: it's only down about one, well two point five percent
Speaker 1: in just the first hour of the post market. The earnings,
Speaker 1: EPs and sales were above estimates, and then the cloud
Speaker 1: service revenue did beat average the average ANELES estimates, so
Speaker 1: revenue for the first quarter seventy seven point six billion
Speaker 1: versus estimates of about seventy five. The EPs also came
Speaker 1: in above. I mean, overall here the stock is down,
Speaker 1: but when you consider the headlines that we're getting out
Speaker 1: of some other tech companies for this earnings, I would say,
Speaker 1: so far, so good for Microsoft first quarter.
Speaker 4: As you said cloud first quarter, as you're another cloud
Speaker 4: revenue x currency up thirty nine percent. The estimate was
Speaker 4: thirty seven point one percent. Our own ana agronosig that's
Speaker 4: a good number he did.
Speaker 3: Yeah, he's out with a note and he's going to
Speaker 3: be listening on this call, but out with a note
Speaker 3: right now. It says Microsoft's fiscal first quarter capital spending
Speaker 3: including lisas came in at thirty five thirty four point
Speaker 3: nine billion, much higher than CONSEETSUS thirty point one billion dollars.
Speaker 3: And though this metric may raise concern for some, we
Speaker 3: see it as a signal of rising AI workload demand.
Speaker 3: That number is good news to honorog in the team.
Speaker 4: And I guess as long as the demand is there, right, like,
Speaker 4: the spend makes sense. Where do you want to go next?
Speaker 5: Okay? Google?
Speaker 1: Okay, so ticker Gooogl. We're talking about Alphabet here, the
Speaker 1: parent company of Google.
Speaker 5: Rising.
Speaker 1: It was up five percent, it is now up. I
Speaker 1: know it's moving around a little, it's moving around a lot. Still,
Speaker 1: it's still twenty five percent.
Speaker 5: Yeah.
Speaker 1: In the post market reported quarterly sales and beat analysts estimates.
Speaker 1: We were talking about Microsoft's cloud unit, but the cloud
Speaker 1: unit over at Alphabet also doing well, which is growing
Speaker 1: as AI startups seek Google support and computing power. So
Speaker 1: the revenue for the third quarter beat estimates, coming in
Speaker 1: at one hundred and two point three five billion. The
Speaker 1: third quarter EPs also beat estimates two dollars eighty seven
Speaker 1: cents a share, and they boosted their full year capex projection.
Speaker 1: So they see fullyar spending on capital expenditures ninety one
Speaker 1: billion dollars to ninety three billion dollars they had seen
Speaker 1: eighty five billion.
Speaker 5: This is all on that continued.
Speaker 1: Spending on AI data centers that they need to do
Speaker 1: and custom chips. This is the big story I would
Speaker 1: say of tech stocks in twenty twenty five, of like,
Speaker 1: how much are you spending on AI? When is it
Speaker 1: going to pay off? What exactly are you buying? What
Speaker 1: are the projects?
Speaker 5: So listening for more of those markets.
Speaker 3: Well, sometimes investors are cool with spending money on this stuff.
Speaker 3: Sometimes they don't react necessarily the way you want them
Speaker 3: to if you're long a stock.
Speaker 5: Yeah, so sometimes they don't.
Speaker 1: I think we're all thinking of Meta here Tickerneta. That
Speaker 1: stock is down over seven percent after reporting earnings, and
Speaker 1: this is coming after Meta said it expects total expenses
Speaker 1: to significantly increase in twenty twenty six as the company
Speaker 1: has to spend on data centers and other equipment to
Speaker 1: fuel the efforts in AI.
Speaker 5: You have to wonder if there were some specifics.
Speaker 1: About the spending plan that maybe investors are picking up
Speaker 1: on that it was different, that they didn't like that
Speaker 1: versus Google Googles. But yeah, I mean it's a bit
Speaker 1: confusing here to see the stock down on this news
Speaker 1: and then Alphabet obviously doing well on their promises to
Speaker 1: spend more on AI.
Speaker 4: Yeah, it's kind of fascinating, right, like the stories being
Speaker 4: told by each I mean, keep in mind, Meta is
Speaker 4: up almost thirty percent here in twenty twenty five, Alphabet
Speaker 4: is up about forty five percent year right in twenty
Speaker 4: twenty five, and like, what's Microsoft? Microsoft in is up
Speaker 4: almost thirty percent this year. I mean, all these guys
Speaker 4: have been on fire.
Speaker 1: And we know that, and we also we are getting
Speaker 1: more headlines out of Meta that the company reported third
Speaker 1: quarter net income of two point seventy one billion, which
Speaker 1: included a non cash income tax charge of fifteen point
Speaker 1: nine billion due to the implementation of the tax bill
Speaker 1: that was signed into law in July. So again, this
Speaker 1: is something that I don't think investors were expecting out
Speaker 1: of the earnings, so could be weighing on the stock
Speaker 1: as well that they're reading headlines about a tax charge
Speaker 1: and these headlines about expenses increasing. So at least for
Speaker 1: the postmarket, that stock is down after those earnings.
Speaker 5: I will say too.
Speaker 4: We're getting some calls on the live blog, Meta assuring
Speaker 4: analysts on the call that it still expects significant cash
Speaker 4: tax savings for the remainder of the year despite the
Speaker 4: hefty tax charge they are talking about. Zuckerberg signaling that
Speaker 4: Meta may have some news coming on its AI models
Speaker 4: and products, saying that his team has been heads down
Speaker 4: working on the next generation and that he's looking forward
Speaker 4: to sharing more on that over the coming months. For
Speaker 4: those who are on radio right now, Tim is playing
Speaker 4: around with his glasses.
Speaker 3: Because that's what Mark Zuckerberg thinks the future is. He
Speaker 3: may have renamed the company Meta Platforms, but he's really
Speaker 3: leaning into augmented reality and virtual reality and meta ray bands. Yeah,
Speaker 3: called it out and then release, Yeah, you're not wearing them.
Speaker 1: I'm not, but you know it is fun if a
Speaker 1: friend is wearing them and then they take a photo
Speaker 1: of you and it's like.
Speaker 3: Oh, Sebastian, one of our producers does that at some
Speaker 3: of some our events. It's pretty cool.
Speaker 4: Yeah, he likes those meta ray bands. Mark Zuckerberg saying
Speaker 4: on the call that he's investing in computing capacity based
Speaker 4: on his most optimistic forecast for achieving super intelligence.
Speaker 1: Yeah, and this is like hundreds of billions a superinturigence
Speaker 1: come of a cave.
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