Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market. Harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move today.
Speaker 1: I'm Nathan Hager, joined by Bloomberg's Dan Curtis. On a
Speaker 1: morning we were seeing the futures turn around now Dan,
Speaker 1: but Amazon continues to fall on big plans, and I
Speaker 1: mean big for AI spending.
Speaker 3: Good morning, Good morning. Two hundred billion dollars. That's all
Speaker 3: I have in my notes for the morning, but I
Speaker 3: think it'll take us through the entire All you need,
Speaker 3: that's all you need. I mean, I will take it.
Speaker 3: Two hundred billion dollars in capex. That's the big number
Speaker 3: coming out of the Amazon results after hours. Well, that's
Speaker 3: how much they are going to be spending this year
Speaker 3: on AI. We've been talking about this all week, all
Speaker 3: these hyperscal are spending a lot of money. Amazon ending
Speaker 3: Friday or ending the week with a big number, biggest
Speaker 3: one so far. The estimate was one hundred and fifty
Speaker 3: billion dollars, so a lot more spending than was expected.
Speaker 3: Money will go mainly towards the AI play as all
Speaker 3: these companies are spending and that's coming with operating income
Speaker 3: guidance for the year. The high end of that was
Speaker 3: twenty one point five billion dollars. That was below Wall
Speaker 3: Street estimate. So this extra spending is going to be
Speaker 3: hitting the bottom line a little bit. Markets are not
Speaker 3: appreciating that fact. Seven percent down in the pre market
Speaker 3: right now. As for the fourth quarter, the top line beat.
Speaker 3: Earnings missed. Strong results from the AI play Amazon Web Services.
Speaker 3: That's the AI division, twenty four percent growth, largest growth
Speaker 3: in three years. It also has a backlog of nearly
Speaker 3: two hundred and fifty billion dollars, so that's business down
Speaker 3: the pipeline. So some good news on the AI, but
Speaker 3: they are spending a lot of money to build it.
Speaker 1: Out and the earnings continue. This morning, we're just watching
Speaker 1: results cross from under Armour.
Speaker 3: That's right, these crossing the crossing the terminal right now.
Speaker 3: Shares are up of under Armour about eight percent in
Speaker 3: pre market. Overall, it looks like a beat. Third quarter
Speaker 3: earnings came in positive at nine cents. Wall Street was
Speaker 3: expecting a loss for the quarter. That's a positive. The
Speaker 3: estimates also coming out positively, so that's getting some bullish
Speaker 3: optimism in the stock this morning. Now five percent whipsawing
Speaker 3: a bit, but in the green.
Speaker 1: And we did get results as well from Stilantis. These
Speaker 1: are not being taken kindly as the pullback from EV's continues.
Speaker 3: That's right, and it's going to cost them twenty six
Speaker 3: billion dollars. That's the charges that they announced in that
Speaker 3: pullback from evs Stilantis. They're cancelingv projects, they're reducing production.
Speaker 3: They have to still compensate some suppliers because there's contracts outstanding.
Speaker 3: The company has stopped making several plug in models. It's
Speaker 3: struggling with sales and struggling with the high cost of
Speaker 3: the EV market. Company got a new CEO last year,
Speaker 3: so this is part of that turnaround. Previous CEO was
Speaker 3: all in on EV's. He was looking for fully EV
Speaker 3: in Europe by twenty thirty. So this is just the
Speaker 3: copany trying to change course under new leadership. It follows
Speaker 3: in the wake of Ford, which announced nineteen and a
Speaker 3: half billion dollars in charges in December, and GM logged
Speaker 3: seven point six billion dollars in write down so far
Speaker 3: around this trade that stocked down twenty six percent in
Speaker 3: the pre market now, so really taking it on the chin.
Speaker 2: Wow.
Speaker 1: And finally let's talk about Reddit. Looks like their earnings
Speaker 1: are getting received pretty well.
Speaker 3: Yeah, I was reading about this on the forum. They're
Speaker 3: up eleven percent. The current quarter sales are projected to
Speaker 3: be around six hundred million dollars. That topped estimates fourth
Speaker 3: quarter top and bottom line beats. That was driven by
Speaker 3: sixty seven percent growth in US sales nearly eighty percent
Speaker 3: revenue growth internationally. This is all AD driven that he's
Speaker 3: been able to expand that AD business, so lots of
Speaker 3: growth both domestically and internationally.
Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.