1 00:00:02,520 --> 00:00:09,800 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,880 --> 00:00:13,320 Speaker 2: This is the closing bell on this stock movers report, 3 00:00:13,560 --> 00:00:16,520 Speaker 2: the company's making moves at the close of US trading 4 00:00:16,760 --> 00:00:21,319 Speaker 2: with Carol Masser, Tim Stenovak, Romain Bostic and Scarlet Food. 5 00:00:21,920 --> 00:00:24,280 Speaker 3: Let's go back though to the S and P five hundred. 6 00:00:24,320 --> 00:00:27,960 Speaker 3: I mentioned most names in the index hired today, three 7 00:00:28,040 --> 00:00:30,760 Speaker 3: hundred and thirty seven to the upside, remain one hundred 8 00:00:30,800 --> 00:00:32,760 Speaker 3: and sixty five to the downside, one unchanged. 9 00:00:32,880 --> 00:00:34,559 Speaker 1: And of course, so we talk about sort of what 10 00:00:34,640 --> 00:00:37,120 Speaker 1: led that charge. It was energy, it was financials, it 11 00:00:37,159 --> 00:00:40,919 Speaker 1: was industrials, it was consumer discretionary, all posting pretty sizeable 12 00:00:41,000 --> 00:00:43,320 Speaker 1: gains here on the day, but the big laggards on 13 00:00:43,360 --> 00:00:46,000 Speaker 1: the day. You saw that in communications services, which is 14 00:00:46,080 --> 00:00:48,120 Speaker 1: largely a lot of the companies like your metas if 15 00:00:48,120 --> 00:00:50,440 Speaker 1: you will. You saw that in utilities, and you saw 16 00:00:50,479 --> 00:00:54,080 Speaker 1: that in the SMP Infotech index, which includes all the biggies. 17 00:00:54,400 --> 00:00:57,200 Speaker 1: All those biggies here down as a group by roughly 18 00:00:57,240 --> 00:01:00,840 Speaker 1: about four tenths of once percent. Now, speaking of the 19 00:01:00,840 --> 00:01:02,760 Speaker 1: Big East, Carol, we are getting some earnings right now, 20 00:01:02,960 --> 00:01:03,280 Speaker 1: a lot of. 21 00:01:03,320 --> 00:01:05,080 Speaker 3: Salesforce, Yeah, we are. And d So let's go through 22 00:01:05,080 --> 00:01:08,039 Speaker 3: the numbers, folks. Let's go right to the forecast. Salesforce 23 00:01:08,040 --> 00:01:12,440 Speaker 3: seeing fourth quarter revenue eleven point thirteen billion to eleven 24 00:01:12,520 --> 00:01:16,119 Speaker 3: point twenty three billion, and folks, that is easily above 25 00:01:16,160 --> 00:01:18,200 Speaker 3: the street estimate, and that's probably why you're seeing the 26 00:01:18,200 --> 00:01:20,560 Speaker 3: stock up about six percent here in the aftermarket. Ten 27 00:01:20,560 --> 00:01:23,920 Speaker 3: point nine to one billion is the estimate. Let me 28 00:01:23,959 --> 00:01:26,880 Speaker 3: go back to the third quarter. Third quarter just to DPS, 29 00:01:26,959 --> 00:01:29,440 Speaker 3: that was a big beat, three dollars twenty five cents 30 00:01:29,440 --> 00:01:31,320 Speaker 3: a share versus the estimate of two to eighty six 31 00:01:31,400 --> 00:01:33,960 Speaker 3: a share. Also, if I take a look at third 32 00:01:34,040 --> 00:01:37,520 Speaker 3: quarter revenue, that was pretty much in line ten point 33 00:01:37,600 --> 00:01:40,640 Speaker 3: twenty six billion versus an estimate of twenty of ten 34 00:01:40,680 --> 00:01:43,880 Speaker 3: point twenty eight billion. But again all right, so pulling 35 00:01:43,920 --> 00:01:45,960 Speaker 3: back a little bit on the games, but remains still 36 00:01:46,040 --> 00:01:48,800 Speaker 3: up about four point seven percent, So investors liking what 37 00:01:48,800 --> 00:01:50,200 Speaker 3: they got in terms of that forecast. 38 00:01:50,280 --> 00:01:51,920 Speaker 1: And I just want to stay on Salesforce for just 39 00:01:51,960 --> 00:01:54,440 Speaker 1: one second, because there was some concern you guys coming 40 00:01:54,480 --> 00:01:57,520 Speaker 1: into this morning with that report from the Information about 41 00:01:57,560 --> 00:02:01,559 Speaker 1: apparently Microsoft's salespeople had missed and at least in the first 42 00:02:01,560 --> 00:02:03,760 Speaker 1: half of the year, some of the AI sales targets 43 00:02:03,880 --> 00:02:06,520 Speaker 1: that actually led to a downdraft in both Microsoft and 44 00:02:06,560 --> 00:02:09,480 Speaker 1: the broader market. Microsoft pushed back on that and we 45 00:02:09,480 --> 00:02:10,800 Speaker 1: saw a big bump up. So there are a lot 46 00:02:10,840 --> 00:02:13,399 Speaker 1: of concerns about what we would hear out of Salesforce. 47 00:02:13,520 --> 00:02:15,080 Speaker 1: This also comes in a day where we heard from 48 00:02:15,080 --> 00:02:17,520 Speaker 1: the anthropic CEO at a New York Times event saying 49 00:02:17,520 --> 00:02:19,240 Speaker 1: that he thought some of the spending on AI had 50 00:02:19,240 --> 00:02:22,120 Speaker 1: maybe gotten a little bit too risky, and some reports 51 00:02:22,160 --> 00:02:24,560 Speaker 1: out of that Morgan Stanley was actually looking to do 52 00:02:24,600 --> 00:02:27,080 Speaker 1: a strategic risk transfer and some of the loans tied 53 00:02:27,600 --> 00:02:29,520 Speaker 1: to that data center build out. 54 00:02:29,720 --> 00:02:32,160 Speaker 4: Yeah, just back to Salesforce and staying on sales source. 55 00:02:32,240 --> 00:02:35,040 Speaker 4: Up eight point three percent in the after hours. Revenue 56 00:02:35,040 --> 00:02:37,360 Speaker 4: for the fourth quarter. The guidance beat the average analyst 57 00:02:37,480 --> 00:02:40,720 Speaker 4: estimate fourth quarter forecasts. He's revenue eleven point one three 58 00:02:40,720 --> 00:02:43,480 Speaker 4: to eleven point two to three billion. That's ahead of 59 00:02:43,600 --> 00:02:46,280 Speaker 4: estimates of ten point nine to one billion dollars. The 60 00:02:46,400 --> 00:02:49,359 Speaker 4: estimate for adjusted EPs was for three dollars and three cents. 61 00:02:49,400 --> 00:02:52,400 Speaker 4: That coming for three dollars and two to three dollars 62 00:02:52,440 --> 00:02:54,919 Speaker 4: and four so right in line with estimates. The company 63 00:02:54,960 --> 00:02:58,480 Speaker 4: sees the current remaining performance obligation at fifteen percent. 64 00:02:58,639 --> 00:03:00,519 Speaker 1: Yeah, we're going to dive deeper into this, but yeah, 65 00:03:00,600 --> 00:03:02,440 Speaker 1: on the surface, these numbers look pretty good. It'll be 66 00:03:02,480 --> 00:03:05,440 Speaker 1: interesting to see what the Mark Benioff and as our 67 00:03:05,440 --> 00:03:07,960 Speaker 1: team has to say on the call. Here the idea 68 00:03:08,240 --> 00:03:10,880 Speaker 1: of AI adoption and of course a company and salesforce 69 00:03:10,919 --> 00:03:14,080 Speaker 1: that has really bet the farm on it going forward. Meanwhile, 70 00:03:14,080 --> 00:03:15,960 Speaker 1: we are getting some other earnings this out of the 71 00:03:16,000 --> 00:03:19,800 Speaker 1: retail space five below. The retailer out with its earnings, 72 00:03:19,840 --> 00:03:22,080 Speaker 1: and it does look to be a beaten a raised quarter. 73 00:03:22,120 --> 00:03:24,639 Speaker 1: The shares had a decent little pop just a few 74 00:03:24,680 --> 00:03:27,000 Speaker 1: minutes ago. Pairing some of those gains. The company is 75 00:03:27,040 --> 00:03:30,200 Speaker 1: saying that in the most recent quarter, net sales did 76 00:03:30,240 --> 00:03:33,520 Speaker 1: come in up about twenty three percent at about one billion. 77 00:03:33,639 --> 00:03:36,760 Speaker 1: Even that's above the average of analyssessments. The company guiding 78 00:03:37,080 --> 00:03:40,120 Speaker 1: for the next quarter. For the current quarter, the fourth 79 00:03:40,200 --> 00:03:43,280 Speaker 1: quarter right now, seeing a guidance of net sales in 80 00:03:43,320 --> 00:03:45,280 Speaker 1: the range of one point five eight to one point 81 00:03:45,360 --> 00:03:47,520 Speaker 1: six to one billion. The low end of that range 82 00:03:47,560 --> 00:03:50,480 Speaker 1: is above the average of street estimates. Similar story, Carol, 83 00:03:50,520 --> 00:03:52,880 Speaker 1: when it comes to the EPs a range with the 84 00:03:52,880 --> 00:03:55,280 Speaker 1: low end of that range higher than the average Street. 85 00:03:55,080 --> 00:03:57,080 Speaker 3: Estimer so important in terms of what it's telling us 86 00:03:57,080 --> 00:04:00,600 Speaker 3: about the US economy, the consumer they retail. I want 87 00:04:00,640 --> 00:04:02,440 Speaker 3: to go back though, to Salesforce if I may. We've 88 00:04:02,440 --> 00:04:04,800 Speaker 3: got a great right through on the Bloomberg by our 89 00:04:04,840 --> 00:04:07,920 Speaker 3: Dana Bass and Brody Ford. Again, the company giving an 90 00:04:08,000 --> 00:04:11,480 Speaker 3: outlook for revenue in the current period that top dalyst estimates, 91 00:04:11,560 --> 00:04:16,880 Speaker 3: suggesting the software companies persuading customers to its AI tools. 92 00:04:17,600 --> 00:04:20,200 Speaker 3: The company's AI tool, it's called Agent Force, has closed 93 00:04:20,240 --> 00:04:22,880 Speaker 3: more than ninety five hundred paid deal since its launch, 94 00:04:23,120 --> 00:04:25,640 Speaker 3: with an annual recurring revenue for the division that includes 95 00:04:25,680 --> 00:04:28,560 Speaker 3: AI focused tools being one point four billion in the 96 00:04:28,640 --> 00:04:31,920 Speaker 3: period ending October thirty first. So again that AI trade 97 00:04:32,000 --> 00:04:36,000 Speaker 3: remain mentioned like some concerns maybe heading into these earnings, 98 00:04:36,000 --> 00:04:39,000 Speaker 3: but it looks like Salesforce is definitely delivering. 99 00:04:38,680 --> 00:04:41,839 Speaker 4: Tem Yeah, Mark Benioff, calling out that ninety five hundred 100 00:04:41,839 --> 00:04:44,560 Speaker 4: page Agent Force deals. He also says three point two 101 00:04:44,600 --> 00:04:48,680 Speaker 4: trillion tokens process some other numbers that he highlights in 102 00:04:48,720 --> 00:04:51,320 Speaker 4: the press release, and of course we'll get more potentially 103 00:04:51,360 --> 00:04:54,440 Speaker 4: on the earnings call. Raising the fiscal year twenty twenty 104 00:04:54,440 --> 00:04:59,000 Speaker 4: six guidance signaling a powerful pipeline of future revenue Agent 105 00:04:59,080 --> 00:05:02,279 Speaker 4: Force and Data three sixty products. They're momentum drivers, hitting 106 00:05:02,360 --> 00:05:05,799 Speaker 4: nearly one point four billion dollars in annual recurring revenue. 107 00:05:05,880 --> 00:05:07,599 Speaker 1: Yeah, we should point out, I mean, coming into this 108 00:05:07,680 --> 00:05:09,760 Speaker 1: session actually one of the worst performers in the Dow 109 00:05:09,839 --> 00:05:12,480 Speaker 1: Jones Industrial average on a year to date basis, and 110 00:05:12,520 --> 00:05:15,360 Speaker 1: that caused some concern here. But at least the customer 111 00:05:15,920 --> 00:05:19,920 Speaker 1: relations software company looks to get its mojo back. Meanwhile, 112 00:05:20,000 --> 00:05:21,039 Speaker 1: we want to take a look at some of the 113 00:05:21,080 --> 00:05:24,080 Speaker 1: database architecture companies, and that includes Snowflake. It's just out 114 00:05:24,080 --> 00:05:26,760 Speaker 1: with this results right now. Those shares actually moving lower, 115 00:05:26,800 --> 00:05:29,600 Speaker 1: down about five percent here in the after hours trade. 116 00:05:29,640 --> 00:05:31,599 Speaker 1: Here's what the company has to say with regards to 117 00:05:31,680 --> 00:05:34,200 Speaker 1: the most recent quarter. It basically says that in the 118 00:05:34,200 --> 00:05:36,560 Speaker 1: most recent quarter, revenue did come in in line with 119 00:05:36,720 --> 00:05:39,720 Speaker 1: estimates at about one point one six billion EPs at 120 00:05:39,760 --> 00:05:42,200 Speaker 1: thirty five cents. That's about four cents higher than what 121 00:05:42,240 --> 00:05:44,479 Speaker 1: the street was looking for. For the fourth quarter. The 122 00:05:44,480 --> 00:05:46,400 Speaker 1: company says though the product revenue will be in a 123 00:05:46,520 --> 00:05:49,400 Speaker 1: range of one point two well, there is no range. 124 00:05:49,400 --> 00:05:51,560 Speaker 1: It will be one point two billion, and that's basically 125 00:05:51,600 --> 00:05:53,360 Speaker 1: on the nose of what the street was looking for. 126 00:05:53,520 --> 00:05:56,120 Speaker 1: How the company also says full your product revenue four 127 00:05:56,160 --> 00:05:58,560 Speaker 1: point four to five. That's slightly higher than what the 128 00:05:58,680 --> 00:06:01,080 Speaker 1: forecasts before, but only a made higher than what the 129 00:06:01,080 --> 00:06:02,880 Speaker 1: street was looking for. And maybe that's why you're seeing 130 00:06:02,880 --> 00:06:03,920 Speaker 1: some softness in the shares. 131 00:06:04,000 --> 00:06:08,599 Speaker 4: I'm looking at another company reporting after hours. Ai US 132 00:06:08,800 --> 00:06:13,560 Speaker 4: is the ticker C three AI. It's the application enterprise 133 00:06:14,080 --> 00:06:17,400 Speaker 4: software company. Shares bouncing around in the after hours, but 134 00:06:17,480 --> 00:06:21,120 Speaker 4: down two point eight percent in terms of the numbers. 135 00:06:21,440 --> 00:06:23,760 Speaker 4: C three AI second quarter adjusted loss per share of 136 00:06:23,839 --> 00:06:26,200 Speaker 4: twenty five cents that came in ahead of estimates at 137 00:06:26,400 --> 00:06:29,160 Speaker 4: thirty three cents. The company sees fiscal year revenue two 138 00:06:29,200 --> 00:06:31,000 Speaker 4: hundred and eighty nine point five to three hundred and 139 00:06:31,080 --> 00:06:34,400 Speaker 4: nine and a half million. That's very much below what 140 00:06:34,440 --> 00:06:36,360 Speaker 4: it saw earlier, which was four hundred and forty seven 141 00:06:36,400 --> 00:06:39,080 Speaker 4: million to four hundred and eighty four point five million. 142 00:06:39,279 --> 00:06:41,680 Speaker 4: Second quarter revenue came in above estimates at seventy five 143 00:06:41,680 --> 00:06:45,080 Speaker 4: point one million dollars once again, and now actually the 144 00:06:45,120 --> 00:06:47,839 Speaker 4: company sees the third quarter revenue seventy two to eighty million. 145 00:06:48,040 --> 00:06:51,040 Speaker 4: The customers for seventy five point six million dollars shares 146 00:06:51,080 --> 00:06:53,120 Speaker 4: in the after hours, down about one point four percent. 147 00:06:53,160 --> 00:06:55,440 Speaker 3: All right, so seeing a lot from certainly the tech community. 148 00:06:55,520 --> 00:06:57,719 Speaker 3: I want to go back to the retail community. Five 149 00:06:57,800 --> 00:07:00,400 Speaker 3: below remain breaking it down earlier. I mean, this is 150 00:07:00,400 --> 00:07:03,359 Speaker 3: a stock that's up almost sixty percent year to date. 151 00:07:03,880 --> 00:07:06,120 Speaker 3: The stock now up about one and a half percent 152 00:07:06,120 --> 00:07:08,720 Speaker 3: in the aftermarket, so it's been bouncing around a little bit. 153 00:07:09,120 --> 00:07:12,880 Speaker 3: Going to the outlook, the company seeing fiscal year EPs 154 00:07:12,920 --> 00:07:15,400 Speaker 3: of five point fifty one five dollars fifty one cents 155 00:07:15,720 --> 00:07:18,040 Speaker 3: to five point sixty nine. It had seen four fifty 156 00:07:18,120 --> 00:07:20,960 Speaker 3: six to four ninety six. The estimate was below five dollars, 157 00:07:21,320 --> 00:07:23,960 Speaker 3: So it looks like investors certainly feeding into that one 158 00:07:24,000 --> 00:07:24,800 Speaker 3: and liking it remains. 159 00:07:24,760 --> 00:07:26,160 Speaker 1: And this raised a lot of questions. I mean, we're 160 00:07:26,200 --> 00:07:28,040 Speaker 1: basically through the earning season. I mean, this is it. 161 00:07:28,040 --> 00:07:30,960 Speaker 1: We get a few tomorrow like Dollar General and Hormel, 162 00:07:31,080 --> 00:07:34,360 Speaker 1: and I think Docu sign and HPE Ultra Beauty as well, 163 00:07:34,480 --> 00:07:37,120 Speaker 1: but we've kind of got to read now on what's 164 00:07:37,120 --> 00:07:39,800 Speaker 1: going on with business spending, what's going on with consumer spending. 165 00:07:39,840 --> 00:07:42,880 Speaker 1: The quarters over and it looks like overall it did 166 00:07:42,920 --> 00:07:43,840 Speaker 1: better than what most. 167 00:07:43,640 --> 00:07:45,640 Speaker 3: People had thought, Yeah, I think you're right, but I 168 00:07:45,680 --> 00:07:47,480 Speaker 3: have to say when it comes to retail I like 169 00:07:47,520 --> 00:07:49,320 Speaker 3: you guys. We've done a lot of interviews on that, 170 00:07:49,400 --> 00:07:52,360 Speaker 3: and it just feels like everybody talking about the consumer yep, 171 00:07:52,480 --> 00:07:55,760 Speaker 3: spending but being cautious. So anything that puts any more 172 00:07:55,880 --> 00:07:59,040 Speaker 3: additional pressure on a consumer, I think we could see 173 00:07:59,040 --> 00:08:01,400 Speaker 3: some problems. And we'll see whether or not they get 174 00:08:01,400 --> 00:08:03,720 Speaker 3: an assist perhaps from the FED in lower rates and 175 00:08:03,840 --> 00:08:06,520 Speaker 3: how that can trickle through certainly the economy. 176 00:08:06,840 --> 00:08:09,400 Speaker 4: Yeah, just a reminder, like the big picture that we've 177 00:08:09,400 --> 00:08:12,400 Speaker 4: gotten from these retailers has been this bifurcated consumer where 178 00:08:12,400 --> 00:08:14,520 Speaker 4: the high end consumer is still spending and even the 179 00:08:14,520 --> 00:08:17,120 Speaker 4: middle income consumers trading down. And look at what we 180 00:08:17,160 --> 00:08:19,200 Speaker 4: saw from some of the dollar stores. 181 00:08:19,000 --> 00:08:19,360 Speaker 1: All right. 182 00:08:19,400 --> 00:08:22,360 Speaker 3: As a result, five below up about two percent. You've 183 00:08:22,360 --> 00:08:24,480 Speaker 3: got salesforce guys up about four and a half percent. 184 00:08:24,520 --> 00:08:26,600 Speaker 3: Snowflake right now down about six and a half percent. 185 00:08:26,640 --> 00:08:28,840 Speaker 3: So watching all of this here in the aftermarket. 186 00:08:28,880 --> 00:08:33,480 Speaker 2: That is a wrap this Stock Movers report from Bloomberg Radio. 187 00:08:34,000 --> 00:08:36,120 Speaker 2: Check back with us throughout the day for the latest 188 00:08:36,200 --> 00:08:39,400 Speaker 2: roundup of companies making news on Wall Street and for 189 00:08:39,480 --> 00:08:43,440 Speaker 2: the latest market moving headlines. Listen to Bloomberg Radio Live. 190 00:08:43,800 --> 00:08:47,400 Speaker 2: Catch us on YouTube, Bloomberg dot com, and on Applecarplay 191 00:08:47,440 --> 00:08:50,040 Speaker 2: and Android Auto with the Bloomberg Business app.