Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: This is the closing bell on this stock movers report
Speaker 2: the company's making moves at the close of US trading
Speaker 2: with Carol Masser, Tim Stenovek Romaine Bostik, and Katie Greifel.
Speaker 3: All Right, so, finishing off our best and worst levels
Speaker 3: of the session, taking a quick look at the big caps,
Speaker 3: the S and P five hundred, KTI three hundred and
Speaker 3: sixty three names gaining ground today, one hundred and thirty
Speaker 3: nine to the downside.
Speaker 4: Yeah, it's interesting. There are more gainers than losers in
Speaker 4: this market, and you can see that at the sector
Speaker 4: level as well, as told by our friend the Circle,
Speaker 4: Big Tech. That's the reason why down about one point
Speaker 4: nine percent. As a sector that's going to be a
Speaker 4: giant weight lower on the overall index. Communication services, consumer
Speaker 4: discretionary also not having too great of a day in
Speaker 4: terms of what did perform today, Energy hire by more
Speaker 4: than two percent, Materials, real estate, and healthcare. Of course,
Speaker 4: we know it was a big day for Eli Lilly Carrol.
Speaker 3: All right, let me get to two of the top
Speaker 3: gainers in the S and P five hundred, super Micro
Speaker 3: up fourteen percent in today's session, or just shy of
Speaker 3: fourteen percent, certainly a now performer, this one jumping on
Speaker 3: a strong outlook. Company gave a forecast for sales in
Speaker 3: the current quarter that signals strong demand for its gear
Speaker 3: to run AI data centers. So a lot of optimism there,
Speaker 3: and I just want to flip on over quickly to
Speaker 3: Eli Lilly again top performer in the s and P
Speaker 3: five hundred to gain of ten percent, provided an upbeat
Speaker 3: sales forecast for the year today. So some outperformance there.
Speaker 3: And we've got Qualcomm crossing.
Speaker 1: Yeah, Qualcomb rning is just crossing the wire, the chip
Speaker 1: maker basically saying that for the first quarter, the fiscal
Speaker 1: first quarter adjusted EPs did beat three dollars and fifty
Speaker 1: cents a share the street for looking for three forty
Speaker 1: one twelve point twenty five billion dollars in revenue, basically
Speaker 1: in line with street estimates for the current quarter. The
Speaker 1: forecast adjusted EPs for the second quarter two dollars and
Speaker 1: forty five cents. That's light. The street was looking for
Speaker 1: two to sixty five And on the revenue side, the
Speaker 1: company says look for about ten point two to eleven
Speaker 1: billion dollars in revenue. Those shares right now down about
Speaker 1: six percent.
Speaker 4: All right, let's get to alphabet here as well. Alphabet
Speaker 4: here's one of the big headlines. Twenty twenty six Capex
Speaker 4: seen between one hundred and seventy five billion to one
Speaker 4: hundred and eighty five billion. The estimate was for one
Speaker 4: hundred and nineteen point five billion dollars, so certainly ahead
Speaker 4: of those estimates there. In terms of fourth quarter revenue,
Speaker 4: it looks like that beat estimates, coming in at one
Speaker 4: hundred and thirteen point eight three billion dollars. The estimate
Speaker 4: had been for just above one hundred and eleven billion dollars. Here,
Speaker 4: Operating income also actually coming in a little bit lighter
Speaker 4: than expectations thirty five point nine billion dollars. The estimate
Speaker 4: had been for thirty six point nine five billion dollars.
Speaker 4: And one more before we move on, fourth quarter Google
Speaker 4: Cloud revenue coming in at seventeen point sixty six billion dollars.
Speaker 4: The estimate had been for sixteen point two billion dollars.
Speaker 4: You can see the shares lower currently by about three
Speaker 4: percent as traders parse through this.
Speaker 5: Yeah, Katy, I know you said that CAPEX number, but
Speaker 5: it's worth repeating. One seventy five to one eighty five
Speaker 5: billion is what the company sees for twenty twenty six.
Speaker 5: The estimate was for one hundred and nineteen and a
Speaker 5: half billion dollars. Hey, I do want to move on
Speaker 5: over to ARM Holding shares in the after hours of
Speaker 5: ARM Holdings down more than ten percent as we speak.
Speaker 5: Third quarter adjusted operating income came in above estimates. Third
Speaker 5: quarter total revenue came in above estimates at one point
Speaker 5: twenty four billion dollars. Third quarter adjusted net revenue coming
Speaker 5: in at four hundred and fifty seven beating estimates. I'm
Speaker 5: just looking for the outlook here. We're getting some not
Speaker 5: quite seeing an outlook at this point. Oh, here we go.
Speaker 5: Fourth quarter revenue one point four to seven billion to
Speaker 5: one point four eight billion dollars. That's ahead of estimates
Speaker 5: of one point four to three billion dollars. Shares in
Speaker 5: the after hours of ARM Holdings down ten point four percent.
Speaker 3: Yeah, all right, so ARM taking a hit here in
Speaker 3: the after hours. Let's bring up the numbers for Alphabet
Speaker 3: once more, because that stock we saw under some pressure.
Speaker 3: I got to go back to the capex expenditures right
Speaker 3: right now, Shares of Alphabet are down six and a
Speaker 3: half percent here seeing twenty twenty six, Capex one hundred
Speaker 3: and seventy five billion to one hundred and eighty five
Speaker 3: billion dollars. The Street estimate way below that at one
Speaker 3: hundred and nineteen point five billion. Again, some questions maybe
Speaker 3: among investors these companies in terms of valuations to spend,
Speaker 3: you know, looking for the ROI on this, I'm just
Speaker 3: going to Gemini monthly active users. Of course, Gemini their
Speaker 3: AI tool seven hundred and fifty million monthly active users.
Speaker 3: We're seeing that, so I.
Speaker 5: Want to know how they measure that though, like Romane,
Speaker 5: is that is that people who are using Gemini as
Speaker 5: a standalone app or is that people who are like
Speaker 5: me who are using it as part of Google. That's
Speaker 5: a good question because it's integrated now across platforms. You
Speaker 5: can do this from you can use this in Gmail now.
Speaker 1: Yeah, and it is a good question. And I mean,
Speaker 1: we'll try to get some answers a little bit later
Speaker 1: out of some of our guests on the clothes who
Speaker 1: might have that. But it gets to this idea too
Speaker 1: as to how we're measuring sort the future growth. And
Speaker 1: one thing I want to go back to is the
Speaker 1: cost side. I mean, I know Capex is the big focus.
Speaker 1: But you talk about a company growing revenue at about
Speaker 1: a fifteen percent clip costs overall are also basically matching
Speaker 1: that as well. And of course when you dive deeper
Speaker 1: into the actual capex and research development costs, that goes
Speaker 1: up even higher. Now, obviously there's a promise of something there,
Speaker 1: and if you believe what's underbrige I is saying in
Speaker 1: the earning statement here, he does see phenomenal growth for
Speaker 1: that Gemini, for the new Gemini rollout, and maybe that
Speaker 1: becomes a salve tim with regards to that cost spend.
Speaker 5: Yeah, shares of Alphabet following as much as seven and
Speaker 5: a half percent on that higher capex. But some companies
Speaker 5: are beneficiaries of that. If you take a look at
Speaker 5: Nvidia after hours, that's up one percent on this idea
Speaker 5: of Alphabet spending more than expected Katie on capex, right, It's.
Speaker 4: Interesting because Alphabet is the latest example of a big
Speaker 4: tech company coming out and giving a very big CAPEX
Speaker 4: guide and where you're seeing the reaction in shares here though.
Speaker 4: But that's a good news of course for some of
Speaker 4: those companies, such as in video.
Speaker 1: But also think about how much they've ramped up, right,
Speaker 1: I mean, we talk about a company that was spending
Speaker 1: like less than half of this in terms of capbags
Speaker 1: just a year ago, right, And so the question is
Speaker 1: where's the return? Have we seen it already? Are we
Speaker 1: going to see it later this year?
Speaker 3: Well, let me just go to the press release because
Speaker 3: Sunda Puci CEO of Alphabet and Google saying we're seeing
Speaker 3: our AI investments in infrastructure drive revenue and growth across
Speaker 3: the board. And so he says to meet the customer
Speaker 3: demand and capitalize on the growing opportunities. He talks about
Speaker 3: that CAPEX number, But I also think, you know, you
Speaker 3: need to look at, you know, growth across some of
Speaker 3: the other businesses. YouTube's annual revenue surpassing sixty billion across
Speaker 3: ads and subscriptions, so monetizing that they say they now
Speaker 3: have over three hundred and twenty five million paid subscriptions
Speaker 3: across consumer services, and they talk about adoption for Google
Speaker 3: One and YouTube Premium and Google Cloud ending twenty twenty
Speaker 3: five at that annual run rate of over seventy billion,
Speaker 3: representing a wide breadth of customers driven by man for
Speaker 3: AI products. So digging a little bit deeper into this
Speaker 3: on the call will certainly be important chairs a look
Speaker 3: at Alphabet went down about one percent here.
Speaker 1: Yeah, and it gets to this idea too when we
Speaker 1: talk about the AI spen and of course it was
Speaker 1: just a few quarters ago where these companies were being
Speaker 1: rewarded for that capex spend. But we talk about this
Speaker 1: idea too of the outperformance that we've seen in Alphabet,
Speaker 1: and we should point out it's still not a really
Speaker 1: a little barnburner of a stock, but compared to its
Speaker 1: other you know, mag seven brethren here, it has been
Speaker 1: a phenomenal outperform and against the idea that maybe investors
Speaker 1: they're looking at the Microsofts and some of the other
Speaker 1: names in that space and realizing it may be at
Speaker 1: least among the megacaps and maybe Alphabet might actually be
Speaker 1: a bit better of a value proposition.
Speaker 4: And just quickly before we go back to that capex
Speaker 4: figure we were talking about in Video rising and the
Speaker 4: wake of these results Broadcom too. If you take a
Speaker 4: look at the function SPLC on the Bloomberg terminal, when
Speaker 4: you take a look at Alphabet suppliers in video Broadcom
Speaker 4: rate at the top there, so this huge capex forecast
Speaker 4: coming from Alphabet once again, that is great news for
Speaker 4: their suppliers.
Speaker 3: All right, The stock shares of Alphabet still down roughly
Speaker 3: two percent.
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