1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. 2 00:00:08,520 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,440 --> 00:00:16,720 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,280 --> 00:00:18,479 Speaker 3: Thumb Carol Master along with Tim Stanevik. Let's get to 5 00:00:18,560 --> 00:00:22,880 Speaker 3: it with Bloomberg News Equities reporter Alexandra Semenova. Alex, it's 6 00:00:22,920 --> 00:00:25,079 Speaker 3: an interesting market day. I am curious where you're going 7 00:00:25,120 --> 00:00:25,640 Speaker 3: to start here. 8 00:00:25,800 --> 00:00:28,400 Speaker 4: Yeah, well, Tim just mentioned bitcoin, so we have to 9 00:00:28,400 --> 00:00:30,760 Speaker 4: start with micro strategy. It used to be the case 10 00:00:31,040 --> 00:00:33,839 Speaker 4: that holding bitcoin was an easy way for companies to 11 00:00:33,920 --> 00:00:37,080 Speaker 4: make big money very fast, and now with bitcoin down 12 00:00:37,080 --> 00:00:40,559 Speaker 4: about forty five percent from its ties in October, all 13 00:00:40,600 --> 00:00:43,159 Speaker 4: of those same companies are really feeling the hit here. 14 00:00:43,560 --> 00:00:46,720 Speaker 4: Micro strategy, or rather strategy after the rebrand, being a 15 00:00:46,760 --> 00:00:50,640 Speaker 4: part of it. It is the original digital asset treasury company. 16 00:00:51,000 --> 00:00:54,400 Speaker 4: It has weathered, you know, severe sell offs anytime that 17 00:00:54,440 --> 00:00:57,920 Speaker 4: bitcoin has, and right now it's really feeling the brunt 18 00:00:57,960 --> 00:00:59,600 Speaker 4: of this. It used to have a premium of more 19 00:00:59,600 --> 00:01:03,560 Speaker 4: than it's underlying bitcoin holdings. Now it trades a just 20 00:01:03,680 --> 00:01:06,520 Speaker 4: a nine percent premium. And it's also expected to report 21 00:01:06,520 --> 00:01:10,319 Speaker 4: results after the close today, and the expectation is that 22 00:01:10,440 --> 00:01:13,240 Speaker 4: it will report a multi billion dollar loss in the 23 00:01:13,319 --> 00:01:15,640 Speaker 4: value of it's bitcoin given the route that we've seen. 24 00:01:16,160 --> 00:01:19,679 Speaker 4: Looking at the stock, it's down fifteen percent today alone, 25 00:01:19,800 --> 00:01:23,800 Speaker 4: down nearly thirty percent year today, So very brutal for micropok. 26 00:01:23,440 --> 00:01:25,480 Speaker 1: A real company, a real test of this model that 27 00:01:25,520 --> 00:01:28,240 Speaker 1: really inspired so many other companies to go out and 28 00:01:28,280 --> 00:01:31,680 Speaker 1: hoard different crypto assets, whether we're talking about bitcoin or ether, 29 00:01:32,040 --> 00:01:34,840 Speaker 1: this idea of a data digital ass exactly. 30 00:01:35,040 --> 00:01:38,600 Speaker 4: Very so it's become like a direct proxy of Bitcoin's performance. 31 00:01:38,680 --> 00:01:38,840 Speaker 2: Yeah. 32 00:01:38,840 --> 00:01:40,520 Speaker 3: I feel like there's a period to where like almost 33 00:01:40,560 --> 00:01:42,560 Speaker 3: every company was like wait, wait, you know, or we 34 00:01:42,600 --> 00:01:44,840 Speaker 3: start to have these discussions back to they have something 35 00:01:45,360 --> 00:01:47,920 Speaker 3: in terms of crypto or bitcoin on their balance sheet. 36 00:01:48,080 --> 00:01:50,960 Speaker 3: I just want to point out Strategy at its high 37 00:01:51,400 --> 00:01:54,640 Speaker 3: back in twenty twenty four, was almost a four hundred 38 00:01:54,680 --> 00:01:56,920 Speaker 3: and seventy four dollars share stock and now it's at 39 00:01:56,920 --> 00:02:00,000 Speaker 3: one oh nine and change, so unbelievable, quite a drop. Okay, 40 00:02:00,240 --> 00:02:00,720 Speaker 3: Number two. 41 00:02:00,880 --> 00:02:03,440 Speaker 4: Number two is alphabet. This one is an interesting one 42 00:02:03,480 --> 00:02:05,800 Speaker 4: because even though the stock is lower today a lot 43 00:02:05,840 --> 00:02:09,160 Speaker 4: of people were disappointed with that capex number, there's actually 44 00:02:09,160 --> 00:02:12,160 Speaker 4: a lot for investors to be excited about. In this report, 45 00:02:12,560 --> 00:02:15,840 Speaker 4: so the company did top up projections for quarterly revenue, 46 00:02:15,840 --> 00:02:19,480 Speaker 4: and specifically in that Google Cloud unit, its revenue jumps 47 00:02:19,760 --> 00:02:23,120 Speaker 4: forty eight percent to a whopping seventeen point seven billion 48 00:02:23,200 --> 00:02:26,799 Speaker 4: dollars That handily topped Wall Street estimates of about sixteen 49 00:02:26,840 --> 00:02:29,560 Speaker 4: point two billion dollars, so really solid number. There are 50 00:02:29,639 --> 00:02:34,200 Speaker 4: also Gemini its AI model. It is rapidly reaching new users. 51 00:02:34,720 --> 00:02:38,080 Speaker 4: The thing that disappointed investors is that CAPEX number. It 52 00:02:38,160 --> 00:02:40,160 Speaker 4: will reach as much as one hundred and eighty five 53 00:02:40,200 --> 00:02:43,480 Speaker 4: billion dollars, which compares to about one hundred and twenty 54 00:02:43,480 --> 00:02:45,880 Speaker 4: billion dollars that Wall Street analysts were expecting, So that 55 00:02:46,000 --> 00:02:49,120 Speaker 4: is a lot more. And for twenty twenty six, that 56 00:02:49,160 --> 00:02:52,560 Speaker 4: CAPEX spending will total more than what it spent in 57 00:02:52,600 --> 00:02:56,320 Speaker 4: the prior three years combined, So a lot of money. 58 00:02:56,440 --> 00:02:59,400 Speaker 4: But at the same time, COEO Sindar Pachai says that 59 00:02:59,600 --> 00:03:02,560 Speaker 4: these costs are necessary and they're actually seeing that their 60 00:03:02,600 --> 00:03:06,520 Speaker 4: business monetize these AI investments. Obviously he's a little bit biased, 61 00:03:06,560 --> 00:03:09,240 Speaker 4: but we also had Jeffrey's analysts say the same thing, 62 00:03:09,280 --> 00:03:11,120 Speaker 4: that AI is actually paying off for Google. 63 00:03:11,919 --> 00:03:13,880 Speaker 1: I mean, it's pretty amazing to see the growth in 64 00:03:14,040 --> 00:03:19,960 Speaker 1: the active Gemini users going just increasing so much just 65 00:03:20,000 --> 00:03:23,760 Speaker 1: over last quarter, right, and that's for the standalone Gemini app, 66 00:03:23,800 --> 00:03:26,440 Speaker 1: not just for like anyone using its AI features in 67 00:03:26,480 --> 00:03:30,120 Speaker 1: a different platform like in Search or in Gmail or something. 68 00:03:30,240 --> 00:03:30,480 Speaker 2: Yeah. 69 00:03:30,520 --> 00:03:33,120 Speaker 4: Absolutely, and also worth noting that the bar was just 70 00:03:33,120 --> 00:03:35,360 Speaker 4: incredibly high into these big tech companies. 71 00:03:35,400 --> 00:03:37,960 Speaker 3: I think it's also interesting. I mean, this dog bounced 72 00:03:38,120 --> 00:03:40,960 Speaker 3: around so much in the aftermarket when it reported. It's 73 00:03:41,000 --> 00:03:43,000 Speaker 3: been done as much as eight percent or almost eight 74 00:03:43,000 --> 00:03:45,880 Speaker 3: percent today, so it has really come off of those 75 00:03:45,960 --> 00:03:49,520 Speaker 3: lows today in a big way. So it's interesting as 76 00:03:49,520 --> 00:03:54,120 Speaker 3: investors make their way all right from Alphabet to where sd. 77 00:03:54,240 --> 00:03:57,840 Speaker 4: Latter just taking a very very big hit today actually 78 00:03:57,840 --> 00:04:01,600 Speaker 4: seeing it's worst decline on It is down twenty one 79 00:04:01,680 --> 00:04:04,720 Speaker 4: percent right now. This is after Even as the company 80 00:04:04,720 --> 00:04:08,160 Speaker 4: did boost its outlook, it just wasn't enough for investors 81 00:04:08,160 --> 00:04:12,240 Speaker 4: who were expecting more from their turnaround effort under their 82 00:04:12,280 --> 00:04:16,240 Speaker 4: new CEO. The company narrowly beat Wall Street's expectations for 83 00:04:16,279 --> 00:04:19,200 Speaker 4: revenue and adjusted earnings per share in its most recent quarters. 84 00:04:19,520 --> 00:04:23,159 Speaker 4: They actually reported good growth in skincare products, so people 85 00:04:23,200 --> 00:04:26,920 Speaker 4: were buying Lamaire and the ordinary. They were also buying 86 00:04:27,000 --> 00:04:30,280 Speaker 4: up a lot of their fragrances, including tom Ford's perfumes 87 00:04:30,320 --> 00:04:33,120 Speaker 4: and Lalava, which, by the way, is just a testament 88 00:04:33,120 --> 00:04:35,800 Speaker 4: of the strength of the consumer. Because tom Ford Perfumes 89 00:04:35,800 --> 00:04:38,840 Speaker 4: are something like three hundred dollars. It's expensive, but that 90 00:04:38,920 --> 00:04:42,239 Speaker 4: segment did well, and the company also narrowed its outlook 91 00:04:42,320 --> 00:04:45,599 Speaker 4: range for the net revenue growth for the period ending 92 00:04:45,640 --> 00:04:48,440 Speaker 4: in June. It now forecast growth of three percent to 93 00:04:48,560 --> 00:04:49,239 Speaker 4: five percent. 94 00:04:50,760 --> 00:04:54,800 Speaker 2: The Stock Mover's report from Bloomberg Radio. Check back with 95 00:04:54,880 --> 00:04:57,440 Speaker 2: us throughout the day for the latest roundup of companies 96 00:04:57,520 --> 00:05:00,120 Speaker 2: making news on Wall Street and for the late this 97 00:05:00,279 --> 00:05:04,480 Speaker 2: market moving headlines. 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