1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. 2 00:00:10,080 --> 00:00:13,560 Speaker 2: This is the closing bell on this stock movers report 3 00:00:13,800 --> 00:00:16,720 Speaker 2: the company's making moves at the close of US trading 4 00:00:16,920 --> 00:00:21,400 Speaker 2: with Carol Masser, Tim Stenovek Romaine Bostik, and Katie Greifel. 5 00:00:22,160 --> 00:00:24,800 Speaker 3: All Right, so, finishing off our best and worst levels 6 00:00:24,880 --> 00:00:27,680 Speaker 3: of the session, taking a quick look at the big caps, 7 00:00:27,680 --> 00:00:29,560 Speaker 3: the S and P five hundred, KTI three hundred and 8 00:00:29,600 --> 00:00:32,440 Speaker 3: sixty three names gaining ground today, one hundred and thirty 9 00:00:32,520 --> 00:00:33,640 Speaker 3: nine to the downside. 10 00:00:33,760 --> 00:00:36,839 Speaker 4: Yeah, it's interesting. There are more gainers than losers in 11 00:00:36,880 --> 00:00:38,879 Speaker 4: this market, and you can see that at the sector 12 00:00:39,320 --> 00:00:41,800 Speaker 4: level as well, as told by our friend the Circle, 13 00:00:42,000 --> 00:00:44,480 Speaker 4: Big Tech. That's the reason why down about one point 14 00:00:44,560 --> 00:00:46,920 Speaker 4: nine percent. As a sector that's going to be a 15 00:00:47,080 --> 00:00:51,479 Speaker 4: giant weight lower on the overall index. Communication services, consumer 16 00:00:51,520 --> 00:00:54,520 Speaker 4: discretionary also not having too great of a day in 17 00:00:54,600 --> 00:00:57,960 Speaker 4: terms of what did perform today, Energy hire by more 18 00:00:58,040 --> 00:01:01,440 Speaker 4: than two percent, Materials, real estate, and healthcare. Of course, 19 00:01:01,440 --> 00:01:03,960 Speaker 4: we know it was a big day for Eli Lilly Carrol. 20 00:01:04,000 --> 00:01:05,560 Speaker 3: All right, let me get to two of the top 21 00:01:05,600 --> 00:01:07,920 Speaker 3: gainers in the S and P five hundred, super Micro 22 00:01:08,080 --> 00:01:10,280 Speaker 3: up fourteen percent in today's session, or just shy of 23 00:01:10,360 --> 00:01:14,520 Speaker 3: fourteen percent, certainly a now performer, this one jumping on 24 00:01:14,560 --> 00:01:17,480 Speaker 3: a strong outlook. Company gave a forecast for sales in 25 00:01:17,520 --> 00:01:19,920 Speaker 3: the current quarter that signals strong demand for its gear 26 00:01:19,959 --> 00:01:23,400 Speaker 3: to run AI data centers. So a lot of optimism there, 27 00:01:23,440 --> 00:01:25,319 Speaker 3: and I just want to flip on over quickly to 28 00:01:25,400 --> 00:01:27,720 Speaker 3: Eli Lilly again top performer in the s and P 29 00:01:27,840 --> 00:01:30,959 Speaker 3: five hundred to gain of ten percent, provided an upbeat 30 00:01:30,959 --> 00:01:34,759 Speaker 3: sales forecast for the year today. So some outperformance there. 31 00:01:34,760 --> 00:01:36,839 Speaker 3: And we've got Qualcomm crossing. 32 00:01:36,520 --> 00:01:38,880 Speaker 1: Yeah, Qualcomb rning is just crossing the wire, the chip 33 00:01:38,920 --> 00:01:41,479 Speaker 1: maker basically saying that for the first quarter, the fiscal 34 00:01:41,520 --> 00:01:44,160 Speaker 1: first quarter adjusted EPs did beat three dollars and fifty 35 00:01:44,160 --> 00:01:46,479 Speaker 1: cents a share the street for looking for three forty 36 00:01:46,560 --> 00:01:50,040 Speaker 1: one twelve point twenty five billion dollars in revenue, basically 37 00:01:50,080 --> 00:01:53,160 Speaker 1: in line with street estimates for the current quarter. The 38 00:01:53,200 --> 00:01:56,440 Speaker 1: forecast adjusted EPs for the second quarter two dollars and 39 00:01:56,520 --> 00:01:58,920 Speaker 1: forty five cents. That's light. The street was looking for 40 00:01:58,960 --> 00:02:01,200 Speaker 1: two to sixty five And on the revenue side, the 41 00:02:01,240 --> 00:02:04,120 Speaker 1: company says look for about ten point two to eleven 42 00:02:04,120 --> 00:02:06,920 Speaker 1: billion dollars in revenue. Those shares right now down about 43 00:02:06,920 --> 00:02:07,480 Speaker 1: six percent. 44 00:02:07,560 --> 00:02:10,440 Speaker 4: All right, let's get to alphabet here as well. Alphabet 45 00:02:10,680 --> 00:02:13,160 Speaker 4: here's one of the big headlines. Twenty twenty six Capex 46 00:02:14,000 --> 00:02:16,120 Speaker 4: seen between one hundred and seventy five billion to one 47 00:02:16,200 --> 00:02:19,520 Speaker 4: hundred and eighty five billion. The estimate was for one 48 00:02:19,600 --> 00:02:23,960 Speaker 4: hundred and nineteen point five billion dollars, so certainly ahead 49 00:02:24,000 --> 00:02:27,400 Speaker 4: of those estimates there. In terms of fourth quarter revenue, 50 00:02:27,440 --> 00:02:30,080 Speaker 4: it looks like that beat estimates, coming in at one 51 00:02:30,120 --> 00:02:32,720 Speaker 4: hundred and thirteen point eight three billion dollars. The estimate 52 00:02:32,960 --> 00:02:37,040 Speaker 4: had been for just above one hundred and eleven billion dollars. Here, 53 00:02:37,200 --> 00:02:41,239 Speaker 4: Operating income also actually coming in a little bit lighter 54 00:02:41,280 --> 00:02:44,040 Speaker 4: than expectations thirty five point nine billion dollars. The estimate 55 00:02:44,080 --> 00:02:46,880 Speaker 4: had been for thirty six point nine five billion dollars. 56 00:02:46,880 --> 00:02:49,519 Speaker 4: And one more before we move on, fourth quarter Google 57 00:02:49,560 --> 00:02:53,920 Speaker 4: Cloud revenue coming in at seventeen point sixty six billion dollars. 58 00:02:53,960 --> 00:02:57,960 Speaker 4: The estimate had been for sixteen point two billion dollars. 59 00:02:58,000 --> 00:03:00,720 Speaker 4: You can see the shares lower currently by about three 60 00:03:00,800 --> 00:03:02,400 Speaker 4: percent as traders parse through this. 61 00:03:02,639 --> 00:03:04,680 Speaker 5: Yeah, Katy, I know you said that CAPEX number, but 62 00:03:04,760 --> 00:03:07,679 Speaker 5: it's worth repeating. One seventy five to one eighty five 63 00:03:07,720 --> 00:03:10,440 Speaker 5: billion is what the company sees for twenty twenty six. 64 00:03:10,560 --> 00:03:13,280 Speaker 5: The estimate was for one hundred and nineteen and a 65 00:03:13,320 --> 00:03:16,120 Speaker 5: half billion dollars. Hey, I do want to move on 66 00:03:16,160 --> 00:03:18,280 Speaker 5: over to ARM Holding shares in the after hours of 67 00:03:18,400 --> 00:03:21,960 Speaker 5: ARM Holdings down more than ten percent as we speak. 68 00:03:22,400 --> 00:03:26,079 Speaker 5: Third quarter adjusted operating income came in above estimates. Third 69 00:03:26,200 --> 00:03:29,960 Speaker 5: quarter total revenue came in above estimates at one point 70 00:03:29,960 --> 00:03:34,800 Speaker 5: twenty four billion dollars. Third quarter adjusted net revenue coming 71 00:03:34,840 --> 00:03:37,760 Speaker 5: in at four hundred and fifty seven beating estimates. I'm 72 00:03:37,800 --> 00:03:40,640 Speaker 5: just looking for the outlook here. We're getting some not 73 00:03:40,720 --> 00:03:42,760 Speaker 5: quite seeing an outlook at this point. Oh, here we go. 74 00:03:42,840 --> 00:03:45,080 Speaker 5: Fourth quarter revenue one point four to seven billion to 75 00:03:45,160 --> 00:03:47,720 Speaker 5: one point four eight billion dollars. That's ahead of estimates 76 00:03:47,720 --> 00:03:50,120 Speaker 5: of one point four to three billion dollars. Shares in 77 00:03:50,160 --> 00:03:52,960 Speaker 5: the after hours of ARM Holdings down ten point four percent. 78 00:03:53,120 --> 00:03:54,960 Speaker 3: Yeah, all right, so ARM taking a hit here in 79 00:03:55,000 --> 00:03:57,720 Speaker 3: the after hours. Let's bring up the numbers for Alphabet 80 00:03:57,720 --> 00:04:01,000 Speaker 3: once more, because that stock we saw under some pressure. 81 00:04:01,080 --> 00:04:04,400 Speaker 3: I got to go back to the capex expenditures right 82 00:04:04,480 --> 00:04:06,960 Speaker 3: right now, Shares of Alphabet are down six and a 83 00:04:07,000 --> 00:04:11,160 Speaker 3: half percent here seeing twenty twenty six, Capex one hundred 84 00:04:11,200 --> 00:04:14,320 Speaker 3: and seventy five billion to one hundred and eighty five 85 00:04:14,360 --> 00:04:17,880 Speaker 3: billion dollars. The Street estimate way below that at one 86 00:04:17,960 --> 00:04:22,320 Speaker 3: hundred and nineteen point five billion. Again, some questions maybe 87 00:04:22,320 --> 00:04:26,120 Speaker 3: among investors these companies in terms of valuations to spend, 88 00:04:26,320 --> 00:04:29,800 Speaker 3: you know, looking for the ROI on this, I'm just 89 00:04:29,839 --> 00:04:32,720 Speaker 3: going to Gemini monthly active users. Of course, Gemini their 90 00:04:32,720 --> 00:04:37,400 Speaker 3: AI tool seven hundred and fifty million monthly active users. 91 00:04:37,880 --> 00:04:39,440 Speaker 3: We're seeing that, so I. 92 00:04:39,400 --> 00:04:41,960 Speaker 5: Want to know how they measure that though, like Romane, 93 00:04:42,000 --> 00:04:43,760 Speaker 5: is that is that people who are using Gemini as 94 00:04:43,760 --> 00:04:45,359 Speaker 5: a standalone app or is that people who are like 95 00:04:45,400 --> 00:04:47,240 Speaker 5: me who are using it as part of Google. That's 96 00:04:47,240 --> 00:04:49,480 Speaker 5: a good question because it's integrated now across platforms. You 97 00:04:49,520 --> 00:04:51,320 Speaker 5: can do this from you can use this in Gmail now. 98 00:04:51,480 --> 00:04:53,120 Speaker 1: Yeah, and it is a good question. And I mean, 99 00:04:53,160 --> 00:04:54,840 Speaker 1: we'll try to get some answers a little bit later 100 00:04:54,839 --> 00:04:56,760 Speaker 1: out of some of our guests on the clothes who 101 00:04:56,839 --> 00:04:58,760 Speaker 1: might have that. But it gets to this idea too 102 00:04:58,800 --> 00:05:00,839 Speaker 1: as to how we're measuring sort the future growth. And 103 00:05:00,839 --> 00:05:02,479 Speaker 1: one thing I want to go back to is the 104 00:05:02,520 --> 00:05:04,679 Speaker 1: cost side. I mean, I know Capex is the big focus. 105 00:05:04,760 --> 00:05:07,120 Speaker 1: But you talk about a company growing revenue at about 106 00:05:07,120 --> 00:05:10,560 Speaker 1: a fifteen percent clip costs overall are also basically matching 107 00:05:10,600 --> 00:05:12,719 Speaker 1: that as well. And of course when you dive deeper 108 00:05:12,760 --> 00:05:15,680 Speaker 1: into the actual capex and research development costs, that goes 109 00:05:15,720 --> 00:05:18,680 Speaker 1: up even higher. Now, obviously there's a promise of something there, 110 00:05:19,080 --> 00:05:21,520 Speaker 1: and if you believe what's underbrige I is saying in 111 00:05:21,560 --> 00:05:24,800 Speaker 1: the earning statement here, he does see phenomenal growth for 112 00:05:25,080 --> 00:05:27,960 Speaker 1: that Gemini, for the new Gemini rollout, and maybe that 113 00:05:28,040 --> 00:05:32,239 Speaker 1: becomes a salve tim with regards to that cost spend. 114 00:05:32,400 --> 00:05:34,400 Speaker 5: Yeah, shares of Alphabet following as much as seven and 115 00:05:34,400 --> 00:05:37,479 Speaker 5: a half percent on that higher capex. But some companies 116 00:05:37,480 --> 00:05:39,440 Speaker 5: are beneficiaries of that. If you take a look at 117 00:05:39,520 --> 00:05:42,560 Speaker 5: Nvidia after hours, that's up one percent on this idea 118 00:05:42,600 --> 00:05:46,159 Speaker 5: of Alphabet spending more than expected Katie on capex, right, It's. 119 00:05:45,960 --> 00:05:49,400 Speaker 4: Interesting because Alphabet is the latest example of a big 120 00:05:49,440 --> 00:05:52,920 Speaker 4: tech company coming out and giving a very big CAPEX 121 00:05:53,240 --> 00:05:56,000 Speaker 4: guide and where you're seeing the reaction in shares here though. 122 00:05:56,000 --> 00:05:58,440 Speaker 4: But that's a good news of course for some of 123 00:05:58,480 --> 00:05:59,920 Speaker 4: those companies, such as in video. 124 00:06:00,040 --> 00:06:03,080 Speaker 1: But also think about how much they've ramped up, right, 125 00:06:03,160 --> 00:06:05,040 Speaker 1: I mean, we talk about a company that was spending 126 00:06:05,080 --> 00:06:07,000 Speaker 1: like less than half of this in terms of capbags 127 00:06:07,080 --> 00:06:09,560 Speaker 1: just a year ago, right, And so the question is 128 00:06:09,920 --> 00:06:12,640 Speaker 1: where's the return? Have we seen it already? Are we 129 00:06:12,680 --> 00:06:14,039 Speaker 1: going to see it later this year? 130 00:06:14,680 --> 00:06:16,720 Speaker 3: Well, let me just go to the press release because 131 00:06:16,760 --> 00:06:20,040 Speaker 3: Sunda Puci CEO of Alphabet and Google saying we're seeing 132 00:06:20,120 --> 00:06:25,080 Speaker 3: our AI investments in infrastructure drive revenue and growth across 133 00:06:25,120 --> 00:06:27,920 Speaker 3: the board. And so he says to meet the customer 134 00:06:27,920 --> 00:06:32,600 Speaker 3: demand and capitalize on the growing opportunities. He talks about 135 00:06:32,600 --> 00:06:34,599 Speaker 3: that CAPEX number, But I also think, you know, you 136 00:06:34,600 --> 00:06:36,480 Speaker 3: need to look at, you know, growth across some of 137 00:06:36,520 --> 00:06:40,599 Speaker 3: the other businesses. YouTube's annual revenue surpassing sixty billion across 138 00:06:40,640 --> 00:06:44,000 Speaker 3: ads and subscriptions, so monetizing that they say they now 139 00:06:44,000 --> 00:06:47,200 Speaker 3: have over three hundred and twenty five million paid subscriptions 140 00:06:47,240 --> 00:06:51,040 Speaker 3: across consumer services, and they talk about adoption for Google 141 00:06:51,040 --> 00:06:54,239 Speaker 3: One and YouTube Premium and Google Cloud ending twenty twenty 142 00:06:54,240 --> 00:06:57,120 Speaker 3: five at that annual run rate of over seventy billion, 143 00:06:57,200 --> 00:07:00,320 Speaker 3: representing a wide breadth of customers driven by man for 144 00:07:00,400 --> 00:07:03,320 Speaker 3: AI products. So digging a little bit deeper into this 145 00:07:03,520 --> 00:07:06,800 Speaker 3: on the call will certainly be important chairs a look 146 00:07:06,839 --> 00:07:08,760 Speaker 3: at Alphabet went down about one percent here. 147 00:07:09,279 --> 00:07:10,840 Speaker 1: Yeah, and it gets to this idea too when we 148 00:07:10,880 --> 00:07:12,600 Speaker 1: talk about the AI spen and of course it was 149 00:07:12,640 --> 00:07:14,600 Speaker 1: just a few quarters ago where these companies were being 150 00:07:14,640 --> 00:07:17,680 Speaker 1: rewarded for that capex spend. But we talk about this 151 00:07:17,760 --> 00:07:20,880 Speaker 1: idea too of the outperformance that we've seen in Alphabet, 152 00:07:20,880 --> 00:07:23,240 Speaker 1: and we should point out it's still not a really 153 00:07:23,280 --> 00:07:25,520 Speaker 1: a little barnburner of a stock, but compared to its 154 00:07:25,560 --> 00:07:28,560 Speaker 1: other you know, mag seven brethren here, it has been 155 00:07:28,600 --> 00:07:31,400 Speaker 1: a phenomenal outperform and against the idea that maybe investors 156 00:07:31,480 --> 00:07:33,280 Speaker 1: they're looking at the Microsofts and some of the other 157 00:07:33,360 --> 00:07:35,600 Speaker 1: names in that space and realizing it may be at 158 00:07:35,640 --> 00:07:38,560 Speaker 1: least among the megacaps and maybe Alphabet might actually be 159 00:07:38,640 --> 00:07:40,440 Speaker 1: a bit better of a value proposition. 160 00:07:40,640 --> 00:07:43,080 Speaker 4: And just quickly before we go back to that capex 161 00:07:43,120 --> 00:07:45,920 Speaker 4: figure we were talking about in Video rising and the 162 00:07:45,920 --> 00:07:47,960 Speaker 4: wake of these results Broadcom too. If you take a 163 00:07:47,960 --> 00:07:51,280 Speaker 4: look at the function SPLC on the Bloomberg terminal, when 164 00:07:51,320 --> 00:07:54,520 Speaker 4: you take a look at Alphabet suppliers in video Broadcom 165 00:07:54,680 --> 00:07:57,800 Speaker 4: rate at the top there, so this huge capex forecast 166 00:07:57,840 --> 00:08:00,600 Speaker 4: coming from Alphabet once again, that is great news for 167 00:08:00,640 --> 00:08:01,920 Speaker 4: their suppliers. 168 00:08:01,400 --> 00:08:04,160 Speaker 3: All right, The stock shares of Alphabet still down roughly 169 00:08:04,160 --> 00:08:04,720 Speaker 3: two percent. 170 00:08:04,760 --> 00:08:10,480 Speaker 2: Here in the aftermarket the Stock Movers Report from Bloomberg Radio. 171 00:08:10,960 --> 00:08:13,120 Speaker 2: Check back with us throughout the day for the latest 172 00:08:13,200 --> 00:08:16,400 Speaker 2: roundup of companies making news on Wall Street and for 173 00:08:16,480 --> 00:08:20,440 Speaker 2: the latest market moving headlines. 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