WEBVTT - American Eagles Rises, Apple Drops on Meta Poach, Netflix Slips 0:00:02.520 --> 0:00:09.800 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.880 --> 0:00:13.320 This is the closing bell on this stock movers report, 0:00:13.560 --> 0:00:16.520 the company's making moves at the close of US trading 0:00:16.760 --> 0:00:21.319 with Carol Masser, Tim Stenovak, Romain Bostic and Scarlet Food. 0:00:21.920 --> 0:00:24.280 Let's go back though to the S and P five hundred. 0:00:24.320 --> 0:00:27.960 I mentioned most names in the index hired today, three 0:00:28.040 --> 0:00:30.760 hundred and thirty seven to the upside, remain one hundred 0:00:30.800 --> 0:00:32.760 and sixty five to the downside, one unchanged. 0:00:32.880 --> 0:00:34.559 And of course, so we talk about sort of what 0:00:34.640 --> 0:00:37.120 led that charge. It was energy, it was financials, it 0:00:37.159 --> 0:00:40.919 was industrials, it was consumer discretionary, all posting pretty sizeable 0:00:41.000 --> 0:00:43.320 gains here on the day, but the big laggards on 0:00:43.360 --> 0:00:46.000 the day. You saw that in communications services, which is 0:00:46.080 --> 0:00:48.120 largely a lot of the companies like your metas if 0:00:48.120 --> 0:00:50.440 you will. You saw that in utilities, and you saw 0:00:50.479 --> 0:00:54.080 that in the SMP Infotech index, which includes all the biggies. 0:00:54.400 --> 0:00:57.200 All those biggies here down as a group by roughly 0:00:57.240 --> 0:01:00.840 about four tenths of once percent. Now, speaking of the 0:01:00.840 --> 0:01:02.760 Big East, Carol, we are getting some earnings right now, 0:01:02.960 --> 0:01:03.280 a lot of. 0:01:03.320 --> 0:01:05.080 Salesforce, Yeah, we are. And d So let's go through 0:01:05.080 --> 0:01:08.039 the numbers, folks. Let's go right to the forecast. Salesforce 0:01:08.040 --> 0:01:12.440 seeing fourth quarter revenue eleven point thirteen billion to eleven 0:01:12.520 --> 0:01:16.119 point twenty three billion, and folks, that is easily above 0:01:16.160 --> 0:01:18.200 the street estimate, and that's probably why you're seeing the 0:01:18.200 --> 0:01:20.560 stock up about six percent here in the aftermarket. Ten 0:01:20.560 --> 0:01:23.920 point nine to one billion is the estimate. Let me 0:01:23.959 --> 0:01:26.880 go back to the third quarter. Third quarter just to DPS, 0:01:26.959 --> 0:01:29.440 that was a big beat, three dollars twenty five cents 0:01:29.440 --> 0:01:31.320 a share versus the estimate of two to eighty six 0:01:31.400 --> 0:01:33.960 a share. Also, if I take a look at third 0:01:34.040 --> 0:01:37.520 quarter revenue, that was pretty much in line ten point 0:01:37.600 --> 0:01:40.640 twenty six billion versus an estimate of twenty of ten 0:01:40.680 --> 0:01:43.880 point twenty eight billion. But again all right, so pulling 0:01:43.920 --> 0:01:45.960 back a little bit on the games, but remains still 0:01:46.040 --> 0:01:48.800 up about four point seven percent, So investors liking what 0:01:48.800 --> 0:01:50.200 they got in terms of that forecast. 0:01:50.280 --> 0:01:51.920 And I just want to stay on Salesforce for just 0:01:51.960 --> 0:01:54.440 one second, because there was some concern you guys coming 0:01:54.480 --> 0:01:57.520 into this morning with that report from the Information about 0:01:57.560 --> 0:02:01.559 apparently Microsoft's salespeople had missed and at least in the first 0:02:01.560 --> 0:02:03.760 half of the year, some of the AI sales targets 0:02:03.880 --> 0:02:06.520 that actually led to a downdraft in both Microsoft and 0:02:06.560 --> 0:02:09.480 the broader market. Microsoft pushed back on that and we 0:02:09.480 --> 0:02:10.800 saw a big bump up. So there are a lot 0:02:10.840 --> 0:02:13.399 of concerns about what we would hear out of Salesforce. 0:02:13.520 --> 0:02:15.080 This also comes in a day where we heard from 0:02:15.080 --> 0:02:17.520 the anthropic CEO at a New York Times event saying 0:02:17.520 --> 0:02:19.240 that he thought some of the spending on AI had 0:02:19.240 --> 0:02:22.120 maybe gotten a little bit too risky, and some reports 0:02:22.160 --> 0:02:24.560 out of that Morgan Stanley was actually looking to do 0:02:24.600 --> 0:02:27.080 a strategic risk transfer and some of the loans tied 0:02:27.600 --> 0:02:29.520 to that data center build out. 0:02:29.720 --> 0:02:32.160 Yeah, just back to Salesforce and staying on sales source. 0:02:32.240 --> 0:02:35.040 Up eight point three percent in the after hours. Revenue 0:02:35.040 --> 0:02:37.360 for the fourth quarter. The guidance beat the average analyst 0:02:37.480 --> 0:02:40.720 estimate fourth quarter forecasts. He's revenue eleven point one three 0:02:40.720 --> 0:02:43.480 to eleven point two to three billion. That's ahead of 0:02:43.600 --> 0:02:46.280 estimates of ten point nine to one billion dollars. The 0:02:46.400 --> 0:02:49.359 estimate for adjusted EPs was for three dollars and three cents. 0:02:49.400 --> 0:02:52.400 That coming for three dollars and two to three dollars 0:02:52.440 --> 0:02:54.919 and four so right in line with estimates. The company 0:02:54.960 --> 0:02:58.480 sees the current remaining performance obligation at fifteen percent. 0:02:58.639 --> 0:03:00.519 Yeah, we're going to dive deeper into this, but yeah, 0:03:00.600 --> 0:03:02.440 on the surface, these numbers look pretty good. It'll be 0:03:02.480 --> 0:03:05.440 interesting to see what the Mark Benioff and as our 0:03:05.440 --> 0:03:07.960 team has to say on the call. Here the idea 0:03:08.240 --> 0:03:10.880 of AI adoption and of course a company and salesforce 0:03:10.919 --> 0:03:14.080 that has really bet the farm on it going forward. Meanwhile, 0:03:14.080 --> 0:03:15.960 we are getting some other earnings this out of the 0:03:16.000 --> 0:03:19.800 retail space five below. The retailer out with its earnings, 0:03:19.840 --> 0:03:22.080 and it does look to be a beaten a raised quarter. 0:03:22.120 --> 0:03:24.639 The shares had a decent little pop just a few 0:03:24.680 --> 0:03:27.000 minutes ago. Pairing some of those gains. The company is 0:03:27.040 --> 0:03:30.200 saying that in the most recent quarter, net sales did 0:03:30.240 --> 0:03:33.520 come in up about twenty three percent at about one billion. 0:03:33.639 --> 0:03:36.760 Even that's above the average of analyssessments. The company guiding 0:03:37.080 --> 0:03:40.120 for the next quarter. For the current quarter, the fourth 0:03:40.200 --> 0:03:43.280 quarter right now, seeing a guidance of net sales in 0:03:43.320 --> 0:03:45.280 the range of one point five eight to one point 0:03:45.360 --> 0:03:47.520 six to one billion. The low end of that range 0:03:47.560 --> 0:03:50.480 is above the average of street estimates. Similar story, Carol, 0:03:50.520 --> 0:03:52.880 when it comes to the EPs a range with the 0:03:52.880 --> 0:03:55.280 low end of that range higher than the average Street. 0:03:55.080 --> 0:03:57.080 Estimer so important in terms of what it's telling us 0:03:57.080 --> 0:04:00.600 about the US economy, the consumer they retail. I want 0:04:00.640 --> 0:04:02.440 to go back though, to Salesforce if I may. We've 0:04:02.440 --> 0:04:04.800 got a great right through on the Bloomberg by our 0:04:04.840 --> 0:04:07.920 Dana Bass and Brody Ford. Again, the company giving an 0:04:08.000 --> 0:04:11.480 outlook for revenue in the current period that top dalyst estimates, 0:04:11.560 --> 0:04:16.880 suggesting the software companies persuading customers to its AI tools. 0:04:17.600 --> 0:04:20.200 The company's AI tool, it's called Agent Force, has closed 0:04:20.240 --> 0:04:22.880 more than ninety five hundred paid deal since its launch, 0:04:23.120 --> 0:04:25.640 with an annual recurring revenue for the division that includes 0:04:25.680 --> 0:04:28.560 AI focused tools being one point four billion in the 0:04:28.640 --> 0:04:31.920 period ending October thirty first. So again that AI trade 0:04:32.000 --> 0:04:36.000 remain mentioned like some concerns maybe heading into these earnings, 0:04:36.000 --> 0:04:39.000 but it looks like Salesforce is definitely delivering. 0:04:38.680 --> 0:04:41.839 Tem Yeah, Mark Benioff, calling out that ninety five hundred 0:04:41.839 --> 0:04:44.560 page Agent Force deals. He also says three point two 0:04:44.600 --> 0:04:48.680 trillion tokens process some other numbers that he highlights in 0:04:48.720 --> 0:04:51.320 the press release, and of course we'll get more potentially 0:04:51.360 --> 0:04:54.440 on the earnings call. Raising the fiscal year twenty twenty 0:04:54.440 --> 0:04:59.000 six guidance signaling a powerful pipeline of future revenue Agent 0:04:59.080 --> 0:05:02.279 Force and Data three sixty products. They're momentum drivers, hitting 0:05:02.360 --> 0:05:05.799 nearly one point four billion dollars in annual recurring revenue. 0:05:05.880 --> 0:05:07.599 Yeah, we should point out, I mean, coming into this 0:05:07.680 --> 0:05:09.760 session actually one of the worst performers in the Dow 0:05:09.839 --> 0:05:12.480 Jones Industrial average on a year to date basis, and 0:05:12.520 --> 0:05:15.360 that caused some concern here. But at least the customer 0:05:15.920 --> 0:05:19.920 relations software company looks to get its mojo back. Meanwhile, 0:05:20.000 --> 0:05:21.039 we want to take a look at some of the 0:05:21.080 --> 0:05:24.080 database architecture companies, and that includes Snowflake. It's just out 0:05:24.080 --> 0:05:26.760 with this results right now. Those shares actually moving lower, 0:05:26.800 --> 0:05:29.600 down about five percent here in the after hours trade. 0:05:29.640 --> 0:05:31.599 Here's what the company has to say with regards to 0:05:31.680 --> 0:05:34.200 the most recent quarter. It basically says that in the 0:05:34.200 --> 0:05:36.560 most recent quarter, revenue did come in in line with 0:05:36.720 --> 0:05:39.720 estimates at about one point one six billion EPs at 0:05:39.760 --> 0:05:42.200 thirty five cents. That's about four cents higher than what 0:05:42.240 --> 0:05:44.479 the street was looking for. For the fourth quarter. The 0:05:44.480 --> 0:05:46.400 company says though the product revenue will be in a 0:05:46.520 --> 0:05:49.400 range of one point two well, there is no range. 0:05:49.400 --> 0:05:51.560 It will be one point two billion, and that's basically 0:05:51.600 --> 0:05:53.360 on the nose of what the street was looking for. 0:05:53.520 --> 0:05:56.120 How the company also says full your product revenue four 0:05:56.160 --> 0:05:58.560 point four to five. That's slightly higher than what the 0:05:58.680 --> 0:06:01.080 forecasts before, but only a made higher than what the 0:06:01.080 --> 0:06:02.880 street was looking for. And maybe that's why you're seeing 0:06:02.880 --> 0:06:03.920 some softness in the shares. 0:06:04.000 --> 0:06:08.599 I'm looking at another company reporting after hours. Ai US 0:06:08.800 --> 0:06:13.560 is the ticker C three AI. It's the application enterprise 0:06:14.080 --> 0:06:17.400 software company. Shares bouncing around in the after hours, but 0:06:17.480 --> 0:06:21.120 down two point eight percent in terms of the numbers. 0:06:21.440 --> 0:06:23.760 C three AI second quarter adjusted loss per share of 0:06:23.839 --> 0:06:26.200 twenty five cents that came in ahead of estimates at 0:06:26.400 --> 0:06:29.160 thirty three cents. The company sees fiscal year revenue two 0:06:29.200 --> 0:06:31.000 hundred and eighty nine point five to three hundred and 0:06:31.080 --> 0:06:34.400 nine and a half million. That's very much below what 0:06:34.440 --> 0:06:36.360 it saw earlier, which was four hundred and forty seven 0:06:36.400 --> 0:06:39.080 million to four hundred and eighty four point five million. 0:06:39.279 --> 0:06:41.680 Second quarter revenue came in above estimates at seventy five 0:06:41.680 --> 0:06:45.080 point one million dollars once again, and now actually the 0:06:45.120 --> 0:06:47.839 company sees the third quarter revenue seventy two to eighty million. 0:06:48.040 --> 0:06:51.040 The customers for seventy five point six million dollars shares 0:06:51.080 --> 0:06:53.120 in the after hours, down about one point four percent. 0:06:53.160 --> 0:06:55.440 All right, so seeing a lot from certainly the tech community. 0:06:55.520 --> 0:06:57.719 I want to go back to the retail community. Five 0:06:57.800 --> 0:07:00.400 below remain breaking it down earlier. I mean, this is 0:07:00.400 --> 0:07:03.359 a stock that's up almost sixty percent year to date. 0:07:03.880 --> 0:07:06.120 The stock now up about one and a half percent 0:07:06.120 --> 0:07:08.720 in the aftermarket, so it's been bouncing around a little bit. 0:07:09.120 --> 0:07:12.880 Going to the outlook, the company seeing fiscal year EPs 0:07:12.920 --> 0:07:15.400 of five point fifty one five dollars fifty one cents 0:07:15.720 --> 0:07:18.040 to five point sixty nine. It had seen four fifty 0:07:18.120 --> 0:07:20.960 six to four ninety six. The estimate was below five dollars, 0:07:21.320 --> 0:07:23.960 So it looks like investors certainly feeding into that one 0:07:24.000 --> 0:07:24.800 and liking it remains. 0:07:24.760 --> 0:07:26.160 And this raised a lot of questions. I mean, we're 0:07:26.200 --> 0:07:28.040 basically through the earning season. I mean, this is it. 0:07:28.040 --> 0:07:30.960 We get a few tomorrow like Dollar General and Hormel, 0:07:31.080 --> 0:07:34.360 and I think Docu sign and HPE Ultra Beauty as well, 0:07:34.480 --> 0:07:37.120 but we've kind of got to read now on what's 0:07:37.120 --> 0:07:39.800 going on with business spending, what's going on with consumer spending. 0:07:39.840 --> 0:07:42.880 The quarters over and it looks like overall it did 0:07:42.920 --> 0:07:43.840 better than what most. 0:07:43.640 --> 0:07:45.640 People had thought, Yeah, I think you're right, but I 0:07:45.680 --> 0:07:47.480 have to say when it comes to retail I like 0:07:47.520 --> 0:07:49.320 you guys. We've done a lot of interviews on that, 0:07:49.400 --> 0:07:52.360 and it just feels like everybody talking about the consumer yep, 0:07:52.480 --> 0:07:55.760 spending but being cautious. So anything that puts any more 0:07:55.880 --> 0:07:59.040 additional pressure on a consumer, I think we could see 0:07:59.040 --> 0:08:01.400 some problems. And we'll see whether or not they get 0:08:01.400 --> 0:08:03.720 an assist perhaps from the FED in lower rates and 0:08:03.840 --> 0:08:06.520 how that can trickle through certainly the economy. 0:08:06.840 --> 0:08:09.400 Yeah, just a reminder, like the big picture that we've 0:08:09.400 --> 0:08:12.400 gotten from these retailers has been this bifurcated consumer where 0:08:12.400 --> 0:08:14.520 the high end consumer is still spending and even the 0:08:14.520 --> 0:08:17.120 middle income consumers trading down. And look at what we 0:08:17.160 --> 0:08:19.200 saw from some of the dollar stores. 0:08:19.000 --> 0:08:19.360 All right. 0:08:19.400 --> 0:08:22.360 As a result, five below up about two percent. You've 0:08:22.360 --> 0:08:24.480 got salesforce guys up about four and a half percent. 0:08:24.520 --> 0:08:26.600 Snowflake right now down about six and a half percent. 0:08:26.640 --> 0:08:28.840 So watching all of this here in the aftermarket. 0:08:28.880 --> 0:08:33.480 That is a wrap this Stock Movers report from Bloomberg Radio. 0:08:34.000 --> 0:08:36.120 Check back with us throughout the day for the latest 0:08:36.200 --> 0:08:39.400 roundup of companies making news on Wall Street and for 0:08:39.480 --> 0:08:43.440 the latest market moving headlines. Listen to Bloomberg Radio Live. 0:08:43.800 --> 0:08:47.400 Catch us on YouTube, Bloomberg dot com, and on Applecarplay 0:08:47.440 --> 0:08:50.040 and Android Auto with the Bloomberg Business app.