Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: This is the closing bell on this stock mover's report
Speaker 2: the companies making moves at the close of US trading
Speaker 2: with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifel.
Speaker 3: All right, guys, let's get to some of the individual
Speaker 3: gainers as we await some earnings and Video That stock
Speaker 3: up three point four percent off its highs, but nonetheless
Speaker 3: a gainer on this Wednesday. That company, as I mentioned,
Speaker 3: at more than three percent stock gaining after SpaceX said
Speaker 3: it would exclusively use Nvidia AI chips. Space expects to
Speaker 3: have approximately two gigawatts of computing capacity by the end
Speaker 3: of this year, could rise to as much as ten
Speaker 3: gigawatts next year.
Speaker 4: That's its projections. Nonetheless, I gave remain.
Speaker 3: A boost to Nvidia, the stock up roughly seventeen percent
Speaker 3: year to date.
Speaker 1: Yeah, a little bit earlier, we got earnings out of booking.
Speaker 1: Those shares rally twelve percent on the day we're now
Speaker 1: hearing from one of its competitors, Media. Those shares slightly
Speaker 1: hower in the after hours trade after the company said
Speaker 1: gross bookings in the quarter did come in slightly above
Speaker 1: estimates at thirty three point nine three billion dollars revenue
Speaker 1: four point three to two billion. That's also a beat
Speaker 1: adjusted EPs five dollars and seventy six cents, and that
Speaker 1: is a beat. Here's your guidance for the full year.
Speaker 1: The company says expect revenue of sixteen point oh five
Speaker 1: to sixteen point two to two billion. That is raising
Speaker 1: of their guidance. Their previous guidance was fifteen point six
Speaker 1: to sixteen billion. So basically a beaten raised quarter for
Speaker 1: the company. As you see, the shares just slightly higher,
Speaker 1: up about one and a half percent.
Speaker 4: Yeah, the stock's actually up about twelve percent year today.
Speaker 3: Looks like it might be actually in the regular session
Speaker 3: maybe closing at a record high. But nonetheless we did
Speaker 3: see it hit a fifty two week high in today's session, again,
Speaker 3: investors liking.
Speaker 4: What they heard from the company.
Speaker 3: Up about five percent here now in the aftermarket second
Speaker 3: quarter adjusted ebit a one point twelve billion versus one
Speaker 3: point oh four. And then in terms of the outlook,
Speaker 3: just to go back there, see he's third quarter revenue
Speaker 3: four points sixty five to four point seventy five, and
Speaker 3: tim that is a boost estimate on the street was
Speaker 3: four point sixty six billion.
Speaker 5: Yeah for Expedia Group shares up four point eight percent
Speaker 5: right now. Arian Goren, the CEO of the company, She said, quote,
Speaker 5: we continue to strengthen our marketplace through more personalized consumer
Speaker 5: product experiences and expanded supply across our business, while leveraging
Speaker 5: AI as a force multiplier to innovate faster and operate
Speaker 5: more efficiently. I guess I want to know more details
Speaker 5: about how they're using AI and how it made them
Speaker 5: more efficient. I think people could say, Okay, well, the
Speaker 5: conversation is starting to shift from these companies now adopting
Speaker 5: this technology and making them more efficient. So where does
Speaker 5: that show up on the bottom line?
Speaker 4: All right, We're going to wait for some more earnings.
Speaker 4: I'm going to go back to some gainers.
Speaker 3: Shopify have to mention at its highs, up almost twenty
Speaker 3: five percent today, finishing the day with the gain of
Speaker 3: about seventeen percent, number one gainer in the NASDAQ one
Speaker 3: hundred today, the highest level since January. The e commerce
Speaker 3: giant reported third quarter revenue outlook, beating expectation, strengthening the
Speaker 3: view that it faces limited disruption from artificial intelligence.
Speaker 4: Revenue is seen growing at.
Speaker 3: A low thirties percent rate, ahead of Wall Street's expectation
Speaker 3: of a twenty seven percent jump. It would mark the
Speaker 3: sixth consecutive quarter revenue growth exceeding thirty percent. Keep in mind,
Speaker 3: the stock has definitely been under pressure. It had fallen
Speaker 3: twenty three percent this year through Tuesday's close. Stock now
Speaker 3: still down about ten percent. Of make concerns about AI disruption,
Speaker 3: but maybe easing some of those investor concerns remain.
Speaker 1: Block Xyz Jack Dorsey's company out with its earning second
Speaker 1: quarter revenue does appear to be a beat, particularly with
Speaker 1: its squares segment revenue, but the redhead has to do
Speaker 1: with their third quarter forecast. The company says operating income
Speaker 1: for the current quarter will be eight hundred and seventy
Speaker 1: five million dollars. That's above street estimates of roughly about
Speaker 1: eight hundred and sixty six million dollars. The company also
Speaker 1: says that for the quarter, it expects gross profit of
Speaker 1: about three point one to three billion. That's just a
Speaker 1: nudge higher than what the street was looking for for
Speaker 1: this particular quarter. The company also providing some full year
Speaker 1: guide and it's also just a smidge above analyst estimates.
Speaker 3: Yeah. Absolutely just going through the snapshot here. You mentioned
Speaker 3: some of the highlights. Just looking for some commentary here.
Speaker 3: So again, she's adjusted operating income for the third quarter
Speaker 3: eight seventy five million, the estimate was eight sixty five
Speaker 3: point seven. She's gross profit of three point thirteen billion,
Speaker 3: the estimate is for three point twelve's a little bit better.
Speaker 3: And again seeing adjusted operating margin of about twenty eight percent. Tim,
Speaker 3: that's stock bouncing around in the aftermarket now unchanged, but
Speaker 3: we did see it a little bit higher earlier on.
Speaker 5: Remember, this is the company that a few quarters ago
Speaker 5: shock the markets by massive layoffs. A lot of people
Speaker 5: in wake of that said, okay, well it was because
Speaker 5: of overhiring that happened during the pandemic. But again going
Speaker 5: back to what everybody's looking for, Okay, did a I
Speaker 5: replace these employees? Is AI making the company more efficient?
Speaker 5: Shares a block for initial reaction now at more than
Speaker 5: four percent in the after hours.
Speaker 1: All right, Well, we're starting to get some numbers trickling
Speaker 1: out here right now. For Western Digital, the company that
Speaker 1: now wants to be referred to as a w D,
Speaker 1: one of the big memory storage device makers. The company
Speaker 1: says that net revenue for the quarter did come in
Speaker 1: at about three point seventy five billion. The street on
Speaker 1: average was looking for three point sixty eight, so that
Speaker 1: is a beat. ASEDDPS coming in at three dollars and
Speaker 1: fifty six cents this year the street was looking for
Speaker 1: at three dollars and thirty one cents. This release is
Speaker 1: a bit of a beast to Paris through but you
Speaker 1: see the reaction in the shares there. They're down about
Speaker 1: twelve percent. So the numbers for the most recreacent quarter
Speaker 1: did beat, But clearly something else in here that investors
Speaker 1: are focusing on, and it might have to do with
Speaker 1: the forecast. The company says that for the current quarter,
Speaker 1: which is its fiscal first quarter, it expects revenue a
Speaker 1: four billion to four point two billion. The street was
Speaker 1: looking for four billion on average, so the low end
Speaker 1: of that range pretty much on the nose of what
Speaker 1: the street was looking for. The company says gross margin
Speaker 1: in the quarter will be fifty six percent, the street
Speaker 1: was looking for fifty three point eight. The company says
Speaker 1: operating expenses in the quarter will be lower than what
Speaker 1: the street was looking problem at three nine eight four
Speaker 1: one hundred million dollars and adjusteddps in the quarter will
Speaker 1: be three eighty five to four fifteen, the low end
Speaker 1: of that range above the average of three dots. What
Speaker 1: is the problem high expectations?
Speaker 3: Yeah, well, the stock's up more than two hundred percent
Speaker 3: year to date, so I would definitely go into that.
Speaker 3: I mean, again going to some of the outlook here,
Speaker 3: the company ce's first quarter justin gross margin fifty five
Speaker 3: percent of fifty six. The estimate was fifty three point eight.
Speaker 3: So that's I would say up be there. The company
Speaker 3: sees first quarter operating expenses looks like they're raining them
Speaker 3: in a little bit three hundred and ninety million to
Speaker 3: four hundred million. The estimate was for four hundred and
Speaker 3: seventy five point three million. And then Digital Western Digital
Speaker 3: C's first quarter just a DBS three eighty five to
Speaker 3: four to fifteen to share.
Speaker 4: The estimate on the street was three eighty three.
Speaker 3: So this is a little I got a little head
Speaker 3: scratching here.
Speaker 5: But the company commentary from from the company CEO now,
Speaker 5: as remain mentioned, WD is how the company wants to
Speaker 5: be referred to Irving Tan. It says that demand is
Speaker 5: that they have confidence in demand. He says, quote as
Speaker 5: global Data Creation continues to accelerate. We enter fiscal year
Speaker 5: twenty twenty seven with continued confidence in the durability of
Speaker 5: demand and with increasing visibility into our business. With our scale,
Speaker 5: technology leadership and operational discipline, WD is well positioned to
Speaker 5: capitalize on the secular data growth opportunity and to deliver
Speaker 5: a long term shareholder.
Speaker 1: I just want to point out real, sorry, just real quickly,
Speaker 1: we are still waiting sandas can I ship point. There
Speaker 1: is a ton of trading activity going on in it
Speaker 1: right now. Those shares are also down about eight percent.
Speaker 1: The release has been posted on the company's website, we
Speaker 1: have not yet gotten it on the Bloomberg terminal, and
Speaker 1: we should also point out that the files on the
Speaker 1: company's website right now not actually coming up here, so
Speaker 1: it's not clear whether people have actually seen the numbers
Speaker 1: just yet and are reacting to that, or whether they're
Speaker 1: reacting to what they heard from Western Digital. Of course,
Speaker 1: Western Digital, the company that's spun off sand Disc all
Speaker 1: last year.
Speaker 4: We've got it on the terminal now.
Speaker 3: Sand disk fiscal fourth quarter revenue was eight point ninety
Speaker 3: seven billion, up fifty one percent sequentially, come reported at
Speaker 3: six point nine billion, sequential revenue growth came approximately one
Speaker 3: third from higher volumes and two thirds from higher pricing,
Speaker 3: which is always great for margins. But it's something to
Speaker 3: keep in mind in terms of when we look through
Speaker 3: these numbers. Fourth quote, a non gap diluted net incumbers
Speaker 3: share was thirty nine twenty five I share. So we're
Speaker 3: just starting to get some stuff here, remine.
Speaker 1: Yeah, I'm going to hold off just a little bit here.
Speaker 1: I'm not quite getting all of those on my terminal
Speaker 1: as well. But you see the reaction and it gets
Speaker 1: back to this idea that you were getting attend, this
Speaker 1: idea of high expectations. Of course, Western Digital had been
Speaker 1: on a tear, but sand Disk had been on even
Speaker 1: a greater tear here, and it raises a lot of
Speaker 1: questions as to exactly what actually constitutes a real beat
Speaker 1: in this day and age.
Speaker 5: Yeah, we got Jake Silverman coming up. He covers semiconductors
Speaker 5: for Bloomberg Intelligence. He's going to be joining us. But look,
Speaker 5: the backdrop is that their demand is high for this stuff.
Speaker 5: Look at what the stocks have done so far this year.
Speaker 5: Look at what Apple has had to do as a
Speaker 5: result of higher input costs raising prices for certain items.
Speaker 5: The question is how how long does that demand go on?
Speaker 5: And you know, is there actual competition from China that
Speaker 5: US companies can can have access to just.
Speaker 3: Going through sand DIS a little bit more expanding their
Speaker 3: share repurchase authorization, proving an additional fourteen billion dollar buy back,
Speaker 3: bringing total remaining authorization to fifteen point five billion. But
Speaker 3: you're right, we're looking for some comparisons here. But I'm
Speaker 3: always a little suspect to going back to who we
Speaker 3: were talking about, was a Western digital cutting their capex,
Speaker 3: and like, why when it is rained in a little bit,
Speaker 3: why is that happening?
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