WEBVTT - Amazon Sinks on $200 Billion Capex; Stellantis Plunges Reset Charges; Reddit Results Show Strong Momentum 

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

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

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<v Speaker 2>in the stock market. Harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move today.

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<v Speaker 1>I'm Nathan Hager, joined by Bloomberg's Dan Curtis. On a

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<v Speaker 1>morning we were seeing the futures turn around now Dan,

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<v Speaker 1>but Amazon continues to fall on big plans, and I

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<v Speaker 1>mean big for AI spending.

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<v Speaker 3>Good morning, Good morning. Two hundred billion dollars. That's all

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<v Speaker 3>I have in my notes for the morning, but I

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<v Speaker 3>think it'll take us through the entire All you need,

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<v Speaker 3>that's all you need. I mean, I will take it.

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<v Speaker 3>Two hundred billion dollars in capex. That's the big number

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<v Speaker 3>coming out of the Amazon results after hours. Well, that's

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<v Speaker 3>how much they are going to be spending this year

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<v Speaker 3>on AI. We've been talking about this all week, all

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<v Speaker 3>these hyperscal are spending a lot of money. Amazon ending

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<v Speaker 3>Friday or ending the week with a big number, biggest

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<v Speaker 3>one so far. The estimate was one hundred and fifty

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<v Speaker 3>billion dollars, so a lot more spending than was expected.

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<v Speaker 3>Money will go mainly towards the AI play as all

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<v Speaker 3>these companies are spending and that's coming with operating income

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<v Speaker 3>guidance for the year. The high end of that was

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<v Speaker 3>twenty one point five billion dollars. That was below Wall

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<v Speaker 3>Street estimate. So this extra spending is going to be

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<v Speaker 3>hitting the bottom line a little bit. Markets are not

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<v Speaker 3>appreciating that fact. Seven percent down in the pre market

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<v Speaker 3>right now. As for the fourth quarter, the top line beat.

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<v Speaker 3>Earnings missed. Strong results from the AI play Amazon Web Services.

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<v Speaker 3>That's the AI division, twenty four percent growth, largest growth

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<v Speaker 3>in three years. It also has a backlog of nearly

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<v Speaker 3>two hundred and fifty billion dollars, so that's business down

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<v Speaker 3>the pipeline. So some good news on the AI, but

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<v Speaker 3>they are spending a lot of money to build it.

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<v Speaker 1>Out and the earnings continue. This morning, we're just watching

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<v Speaker 1>results cross from under Armour.

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<v Speaker 3>That's right, these crossing the crossing the terminal right now.

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<v Speaker 3>Shares are up of under Armour about eight percent in

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<v Speaker 3>pre market. Overall, it looks like a beat. Third quarter

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<v Speaker 3>earnings came in positive at nine cents. Wall Street was

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<v Speaker 3>expecting a loss for the quarter. That's a positive. The

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<v Speaker 3>estimates also coming out positively, so that's getting some bullish

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<v Speaker 3>optimism in the stock this morning. Now five percent whipsawing

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<v Speaker 3>a bit, but in the green.

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<v Speaker 1>And we did get results as well from Stilantis. These

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<v Speaker 1>are not being taken kindly as the pullback from EV's continues.

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<v Speaker 3>That's right, and it's going to cost them twenty six

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<v Speaker 3>billion dollars. That's the charges that they announced in that

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<v Speaker 3>pullback from evs Stilantis. They're cancelingv projects, they're reducing production.

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<v Speaker 3>They have to still compensate some suppliers because there's contracts outstanding.

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<v Speaker 3>The company has stopped making several plug in models. It's

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<v Speaker 3>struggling with sales and struggling with the high cost of

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<v Speaker 3>the EV market. Company got a new CEO last year,

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<v Speaker 3>so this is part of that turnaround. Previous CEO was

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<v Speaker 3>all in on EV's. He was looking for fully EV

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<v Speaker 3>in Europe by twenty thirty. So this is just the

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<v Speaker 3>copany trying to change course under new leadership. It follows

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<v Speaker 3>in the wake of Ford, which announced nineteen and a

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<v Speaker 3>half billion dollars in charges in December, and GM logged

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<v Speaker 3>seven point six billion dollars in write down so far

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<v Speaker 3>around this trade that stocked down twenty six percent in

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<v Speaker 3>the pre market now, so really taking it on the chin.

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<v Speaker 2>Wow.

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<v Speaker 1>And finally let's talk about Reddit. Looks like their earnings

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<v Speaker 1>are getting received pretty well.

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<v Speaker 3>Yeah, I was reading about this on the forum. They're

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<v Speaker 3>up eleven percent. The current quarter sales are projected to

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<v Speaker 3>be around six hundred million dollars. That topped estimates fourth

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<v Speaker 3>quarter top and bottom line beats. That was driven by

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<v Speaker 3>sixty seven percent growth in US sales nearly eighty percent

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<v Speaker 3>revenue growth internationally. This is all AD driven that he's

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<v Speaker 3>been able to expand that AD business, so lots of

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<v Speaker 3>growth both domestically and internationally.

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<v Speaker 2>This Stock Movers report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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