WEBVTT - Closing Bell: Nvidia Gains, Shopify Jumps, Earnings After the Bell 0:00:02.480 --> 0:00:09.959 Bloomberg Audio Studios, podcasts, radio News. 0:00:10.039 --> 0:00:13.520 This is the closing bell on this stock mover's report 0:00:13.760 --> 0:00:16.680 the companies making moves at the close of US trading 0:00:16.880 --> 0:00:21.360 with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifel. 0:00:22.239 --> 0:00:24.040 All right, guys, let's get to some of the individual 0:00:24.040 --> 0:00:27.240 gainers as we await some earnings and Video That stock 0:00:27.280 --> 0:00:29.920 up three point four percent off its highs, but nonetheless 0:00:29.920 --> 0:00:34.120 a gainer on this Wednesday. That company, as I mentioned, 0:00:34.159 --> 0:00:37.800 at more than three percent stock gaining after SpaceX said 0:00:38.080 --> 0:00:41.760 it would exclusively use Nvidia AI chips. Space expects to 0:00:41.800 --> 0:00:44.760 have approximately two gigawatts of computing capacity by the end 0:00:44.760 --> 0:00:46.400 of this year, could rise to as much as ten 0:00:46.440 --> 0:00:47.400 gigawatts next year. 0:00:47.440 --> 0:00:50.640 That's its projections. Nonetheless, I gave remain. 0:00:50.400 --> 0:00:53.080 A boost to Nvidia, the stock up roughly seventeen percent 0:00:53.120 --> 0:00:53.519 year to date. 0:00:53.800 --> 0:00:55.920 Yeah, a little bit earlier, we got earnings out of booking. 0:00:55.960 --> 0:00:58.400 Those shares rally twelve percent on the day we're now 0:00:58.440 --> 0:01:01.640 hearing from one of its competitors, Media. Those shares slightly 0:01:01.680 --> 0:01:04.480 hower in the after hours trade after the company said 0:01:04.520 --> 0:01:07.160 gross bookings in the quarter did come in slightly above 0:01:07.280 --> 0:01:10.600 estimates at thirty three point nine three billion dollars revenue 0:01:10.680 --> 0:01:13.200 four point three to two billion. That's also a beat 0:01:13.240 --> 0:01:16.480 adjusted EPs five dollars and seventy six cents, and that 0:01:16.640 --> 0:01:18.759 is a beat. Here's your guidance for the full year. 0:01:18.920 --> 0:01:22.080 The company says expect revenue of sixteen point oh five 0:01:22.120 --> 0:01:25.880 to sixteen point two to two billion. That is raising 0:01:25.920 --> 0:01:28.600 of their guidance. Their previous guidance was fifteen point six 0:01:28.800 --> 0:01:32.080 to sixteen billion. So basically a beaten raised quarter for 0:01:32.280 --> 0:01:35.200 the company. As you see, the shares just slightly higher, 0:01:35.280 --> 0:01:36.360 up about one and a half percent. 0:01:36.440 --> 0:01:38.640 Yeah, the stock's actually up about twelve percent year today. 0:01:38.720 --> 0:01:41.679 Looks like it might be actually in the regular session 0:01:41.680 --> 0:01:44.280 maybe closing at a record high. But nonetheless we did 0:01:44.319 --> 0:01:46.600 see it hit a fifty two week high in today's session, again, 0:01:46.680 --> 0:01:47.680 investors liking. 0:01:47.440 --> 0:01:48.680 What they heard from the company. 0:01:49.040 --> 0:01:53.559 Up about five percent here now in the aftermarket second 0:01:53.640 --> 0:01:56.960 quarter adjusted ebit a one point twelve billion versus one 0:01:56.960 --> 0:01:58.720 point oh four. And then in terms of the outlook, 0:01:58.760 --> 0:02:01.040 just to go back there, see he's third quarter revenue 0:02:01.040 --> 0:02:03.360 four points sixty five to four point seventy five, and 0:02:03.440 --> 0:02:06.360 tim that is a boost estimate on the street was 0:02:06.360 --> 0:02:07.639 four point sixty six billion. 0:02:07.840 --> 0:02:10.200 Yeah for Expedia Group shares up four point eight percent 0:02:10.360 --> 0:02:13.240 right now. Arian Goren, the CEO of the company, She said, quote, 0:02:13.280 --> 0:02:16.320 we continue to strengthen our marketplace through more personalized consumer 0:02:16.360 --> 0:02:20.480 product experiences and expanded supply across our business, while leveraging 0:02:20.480 --> 0:02:23.639 AI as a force multiplier to innovate faster and operate 0:02:23.720 --> 0:02:27.320 more efficiently. I guess I want to know more details 0:02:27.360 --> 0:02:29.160 about how they're using AI and how it made them 0:02:29.200 --> 0:02:32.000 more efficient. I think people could say, Okay, well, the 0:02:32.040 --> 0:02:34.919 conversation is starting to shift from these companies now adopting 0:02:34.919 --> 0:02:37.200 this technology and making them more efficient. So where does 0:02:37.200 --> 0:02:38.400 that show up on the bottom line? 0:02:38.440 --> 0:02:39.880 All right, We're going to wait for some more earnings. 0:02:39.919 --> 0:02:41.120 I'm going to go back to some gainers. 0:02:41.120 --> 0:02:43.880 Shopify have to mention at its highs, up almost twenty 0:02:43.880 --> 0:02:46.400 five percent today, finishing the day with the gain of 0:02:46.480 --> 0:02:49.400 about seventeen percent, number one gainer in the NASDAQ one 0:02:49.520 --> 0:02:53.440 hundred today, the highest level since January. The e commerce 0:02:53.480 --> 0:02:58.040 giant reported third quarter revenue outlook, beating expectation, strengthening the 0:02:58.120 --> 0:03:01.760 view that it faces limited disruption from artificial intelligence. 0:03:02.080 --> 0:03:03.600 Revenue is seen growing at. 0:03:03.840 --> 0:03:06.720 A low thirties percent rate, ahead of Wall Street's expectation 0:03:06.760 --> 0:03:08.959 of a twenty seven percent jump. It would mark the 0:03:09.000 --> 0:03:12.799 sixth consecutive quarter revenue growth exceeding thirty percent. Keep in mind, 0:03:12.840 --> 0:03:15.919 the stock has definitely been under pressure. It had fallen 0:03:15.960 --> 0:03:19.679 twenty three percent this year through Tuesday's close. Stock now 0:03:19.720 --> 0:03:23.040 still down about ten percent. Of make concerns about AI disruption, 0:03:23.120 --> 0:03:26.160 but maybe easing some of those investor concerns remain. 0:03:26.440 --> 0:03:30.120 Block Xyz Jack Dorsey's company out with its earning second 0:03:30.200 --> 0:03:33.360 quarter revenue does appear to be a beat, particularly with 0:03:33.440 --> 0:03:36.280 its squares segment revenue, but the redhead has to do 0:03:36.400 --> 0:03:39.720 with their third quarter forecast. The company says operating income 0:03:39.720 --> 0:03:41.760 for the current quarter will be eight hundred and seventy 0:03:41.760 --> 0:03:44.760 five million dollars. That's above street estimates of roughly about 0:03:44.760 --> 0:03:48.200 eight hundred and sixty six million dollars. The company also 0:03:48.280 --> 0:03:51.160 says that for the quarter, it expects gross profit of 0:03:51.160 --> 0:03:53.360 about three point one to three billion. That's just a 0:03:53.440 --> 0:03:56.640 nudge higher than what the street was looking for for 0:03:56.760 --> 0:03:59.680 this particular quarter. The company also providing some full year 0:03:59.720 --> 0:04:03.480 guide and it's also just a smidge above analyst estimates. 0:04:03.600 --> 0:04:06.320 Yeah. Absolutely just going through the snapshot here. You mentioned 0:04:06.320 --> 0:04:10.680 some of the highlights. Just looking for some commentary here. 0:04:10.760 --> 0:04:13.640 So again, she's adjusted operating income for the third quarter 0:04:13.960 --> 0:04:16.560 eight seventy five million, the estimate was eight sixty five 0:04:16.600 --> 0:04:20.320 point seven. She's gross profit of three point thirteen billion, 0:04:20.320 --> 0:04:22.800 the estimate is for three point twelve's a little bit better. 0:04:23.040 --> 0:04:26.279 And again seeing adjusted operating margin of about twenty eight percent. Tim, 0:04:26.279 --> 0:04:28.919 that's stock bouncing around in the aftermarket now unchanged, but 0:04:28.960 --> 0:04:30.560 we did see it a little bit higher earlier on. 0:04:30.720 --> 0:04:32.719 Remember, this is the company that a few quarters ago 0:04:32.800 --> 0:04:36.000 shock the markets by massive layoffs. A lot of people 0:04:36.000 --> 0:04:38.400 in wake of that said, okay, well it was because 0:04:38.440 --> 0:04:41.480 of overhiring that happened during the pandemic. But again going 0:04:41.520 --> 0:04:45.880 back to what everybody's looking for, Okay, did a I 0:04:45.960 --> 0:04:49.000 replace these employees? Is AI making the company more efficient? 0:04:49.320 --> 0:04:51.800 Shares a block for initial reaction now at more than 0:04:51.839 --> 0:04:53.320 four percent in the after hours. 0:04:53.520 --> 0:04:56.400 All right, Well, we're starting to get some numbers trickling 0:04:56.440 --> 0:04:58.920 out here right now. For Western Digital, the company that 0:04:59.000 --> 0:05:02.120 now wants to be referred to as a w D, 0:05:02.560 --> 0:05:06.200 one of the big memory storage device makers. The company 0:05:06.200 --> 0:05:08.919 says that net revenue for the quarter did come in 0:05:08.960 --> 0:05:11.479 at about three point seventy five billion. The street on 0:05:11.520 --> 0:05:14.080 average was looking for three point sixty eight, so that 0:05:14.160 --> 0:05:16.760 is a beat. ASEDDPS coming in at three dollars and 0:05:16.800 --> 0:05:19.359 fifty six cents this year the street was looking for 0:05:19.400 --> 0:05:23.080 at three dollars and thirty one cents. This release is 0:05:23.080 --> 0:05:25.159 a bit of a beast to Paris through but you 0:05:25.160 --> 0:05:27.120 see the reaction in the shares there. They're down about 0:05:27.160 --> 0:05:29.800 twelve percent. So the numbers for the most recreacent quarter 0:05:29.839 --> 0:05:32.600 did beat, But clearly something else in here that investors 0:05:32.640 --> 0:05:34.760 are focusing on, and it might have to do with 0:05:34.760 --> 0:05:37.080 the forecast. The company says that for the current quarter, 0:05:37.120 --> 0:05:40.159 which is its fiscal first quarter, it expects revenue a 0:05:40.240 --> 0:05:42.840 four billion to four point two billion. The street was 0:05:42.880 --> 0:05:44.960 looking for four billion on average, so the low end 0:05:44.960 --> 0:05:46.839 of that range pretty much on the nose of what 0:05:46.880 --> 0:05:49.400 the street was looking for. The company says gross margin 0:05:49.440 --> 0:05:51.719 in the quarter will be fifty six percent, the street 0:05:51.800 --> 0:05:54.719 was looking for fifty three point eight. The company says 0:05:54.839 --> 0:05:57.640 operating expenses in the quarter will be lower than what 0:05:57.640 --> 0:06:00.000 the street was looking problem at three nine eight four 0:06:00.000 --> 0:06:03.400 one hundred million dollars and adjusteddps in the quarter will 0:06:03.440 --> 0:06:06.400 be three eighty five to four fifteen, the low end 0:06:06.440 --> 0:06:08.480 of that range above the average of three dots. What 0:06:08.520 --> 0:06:10.400 is the problem high expectations? 0:06:10.560 --> 0:06:12.400 Yeah, well, the stock's up more than two hundred percent 0:06:12.480 --> 0:06:14.840 year to date, so I would definitely go into that. 0:06:15.400 --> 0:06:18.120 I mean, again going to some of the outlook here, 0:06:18.160 --> 0:06:20.839 the company ce's first quarter justin gross margin fifty five 0:06:20.839 --> 0:06:23.360 percent of fifty six. The estimate was fifty three point eight. 0:06:23.440 --> 0:06:27.320 So that's I would say up be there. The company 0:06:27.400 --> 0:06:30.600 sees first quarter operating expenses looks like they're raining them 0:06:30.600 --> 0:06:32.560 in a little bit three hundred and ninety million to 0:06:32.560 --> 0:06:34.960 four hundred million. The estimate was for four hundred and 0:06:35.000 --> 0:06:39.599 seventy five point three million. And then Digital Western Digital 0:06:39.680 --> 0:06:41.919 C's first quarter just a DBS three eighty five to 0:06:41.960 --> 0:06:43.000 four to fifteen to share. 0:06:43.040 --> 0:06:45.119 The estimate on the street was three eighty three. 0:06:45.920 --> 0:06:48.360 So this is a little I got a little head 0:06:48.400 --> 0:06:49.080 scratching here. 0:06:49.279 --> 0:06:53.240 But the company commentary from from the company CEO now, 0:06:53.360 --> 0:06:56.120 as remain mentioned, WD is how the company wants to 0:06:56.160 --> 0:06:59.840 be referred to Irving Tan. It says that demand is 0:07:00.080 --> 0:07:02.480 that they have confidence in demand. He says, quote as 0:07:02.520 --> 0:07:05.560 global Data Creation continues to accelerate. We enter fiscal year 0:07:05.560 --> 0:07:08.279 twenty twenty seven with continued confidence in the durability of 0:07:08.320 --> 0:07:12.840 demand and with increasing visibility into our business. With our scale, 0:07:12.880 --> 0:07:16.480 technology leadership and operational discipline, WD is well positioned to 0:07:16.520 --> 0:07:20.160 capitalize on the secular data growth opportunity and to deliver 0:07:20.160 --> 0:07:21.480 a long term shareholder. 0:07:21.320 --> 0:07:23.080 I just want to point out real, sorry, just real quickly, 0:07:23.120 --> 0:07:24.960 we are still waiting sandas can I ship point. There 0:07:25.000 --> 0:07:26.880 is a ton of trading activity going on in it 0:07:26.960 --> 0:07:29.720 right now. Those shares are also down about eight percent. 0:07:30.120 --> 0:07:32.640 The release has been posted on the company's website, we 0:07:32.680 --> 0:07:34.880 have not yet gotten it on the Bloomberg terminal, and 0:07:34.920 --> 0:07:36.560 we should also point out that the files on the 0:07:36.560 --> 0:07:40.080 company's website right now not actually coming up here, so 0:07:40.280 --> 0:07:42.480 it's not clear whether people have actually seen the numbers 0:07:42.560 --> 0:07:44.640 just yet and are reacting to that, or whether they're 0:07:44.680 --> 0:07:46.760 reacting to what they heard from Western Digital. Of course, 0:07:46.760 --> 0:07:49.400 Western Digital, the company that's spun off sand Disc all 0:07:49.480 --> 0:07:49.920 last year. 0:07:50.000 --> 0:07:51.880 We've got it on the terminal now. 0:07:52.760 --> 0:07:56.600 Sand disk fiscal fourth quarter revenue was eight point ninety 0:07:56.600 --> 0:08:00.880 seven billion, up fifty one percent sequentially, come reported at 0:08:00.920 --> 0:08:04.920 six point nine billion, sequential revenue growth came approximately one 0:08:04.960 --> 0:08:09.000 third from higher volumes and two thirds from higher pricing, 0:08:10.240 --> 0:08:13.720 which is always great for margins. But it's something to 0:08:13.840 --> 0:08:16.000 keep in mind in terms of when we look through 0:08:16.000 --> 0:08:18.480 these numbers. Fourth quote, a non gap diluted net incumbers 0:08:18.480 --> 0:08:20.840 share was thirty nine twenty five I share. So we're 0:08:20.880 --> 0:08:22.360 just starting to get some stuff here, remine. 0:08:22.400 --> 0:08:24.280 Yeah, I'm going to hold off just a little bit here. 0:08:24.600 --> 0:08:26.920 I'm not quite getting all of those on my terminal 0:08:26.960 --> 0:08:29.000 as well. But you see the reaction and it gets 0:08:29.040 --> 0:08:31.240 back to this idea that you were getting attend, this 0:08:31.280 --> 0:08:34.560 idea of high expectations. Of course, Western Digital had been 0:08:34.600 --> 0:08:36.520 on a tear, but sand Disk had been on even 0:08:36.559 --> 0:08:38.520 a greater tear here, and it raises a lot of 0:08:38.559 --> 0:08:41.720 questions as to exactly what actually constitutes a real beat 0:08:41.760 --> 0:08:43.040 in this day and age. 0:08:43.400 --> 0:08:46.080 Yeah, we got Jake Silverman coming up. He covers semiconductors 0:08:46.120 --> 0:08:48.559 for Bloomberg Intelligence. He's going to be joining us. But look, 0:08:48.640 --> 0:08:51.800 the backdrop is that their demand is high for this stuff. 0:08:51.840 --> 0:08:54.000 Look at what the stocks have done so far this year. 0:08:54.080 --> 0:08:55.640 Look at what Apple has had to do as a 0:08:55.640 --> 0:08:59.360 result of higher input costs raising prices for certain items. 0:08:59.400 --> 0:09:01.360 The question is how how long does that demand go on? 0:09:01.480 --> 0:09:03.959 And you know, is there actual competition from China that 0:09:04.400 --> 0:09:07.000 US companies can can have access to just. 0:09:06.960 --> 0:09:08.880 Going through sand DIS a little bit more expanding their 0:09:08.920 --> 0:09:12.960 share repurchase authorization, proving an additional fourteen billion dollar buy back, 0:09:13.000 --> 0:09:15.840 bringing total remaining authorization to fifteen point five billion. But 0:09:15.840 --> 0:09:19.079 you're right, we're looking for some comparisons here. But I'm 0:09:19.120 --> 0:09:21.960 always a little suspect to going back to who we 0:09:21.960 --> 0:09:24.800 were talking about, was a Western digital cutting their capex, 0:09:24.840 --> 0:09:28.520 and like, why when it is rained in a little bit, 0:09:28.559 --> 0:09:29.560 why is that happening? 0:09:31.200 --> 0:09:35.240 This Stock Movers report from Bloomberg Radio. Check back with 0:09:35.320 --> 0:09:37.880 us throughout the day for the latest roundup of companies 0:09:37.960 --> 0:09:41.080 making news on Wall Street and for the latest market 0:09:41.080 --> 0:09:45.560 moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 0:09:45.640 --> 0:09:49.160 Bloomberg dot com, and on Applecarplay and Android Auto with 0:09:49.200 --> 0:09:50.720 the Bloomberg Business app.