Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Thumb Carol Master along with Tim Stanevik. Let's get to
Speaker 3: it with Bloomberg News Equities reporter Alexandra Semenova. Alex, it's
Speaker 3: an interesting market day. I am curious where you're going
Speaker 3: to start here.
Speaker 4: Yeah, well, Tim just mentioned bitcoin, so we have to
Speaker 4: start with micro strategy. It used to be the case
Speaker 4: that holding bitcoin was an easy way for companies to
Speaker 4: make big money very fast, and now with bitcoin down
Speaker 4: about forty five percent from its ties in October, all
Speaker 4: of those same companies are really feeling the hit here.
Speaker 4: Micro strategy, or rather strategy after the rebrand, being a
Speaker 4: part of it. It is the original digital asset treasury company.
Speaker 4: It has weathered, you know, severe sell offs anytime that
Speaker 4: bitcoin has, and right now it's really feeling the brunt
Speaker 4: of this. It used to have a premium of more
Speaker 4: than it's underlying bitcoin holdings. Now it trades a just
Speaker 4: a nine percent premium. And it's also expected to report
Speaker 4: results after the close today, and the expectation is that
Speaker 4: it will report a multi billion dollar loss in the
Speaker 4: value of it's bitcoin given the route that we've seen.
Speaker 4: Looking at the stock, it's down fifteen percent today alone,
Speaker 4: down nearly thirty percent year today, So very brutal for micropok.
Speaker 1: A real company, a real test of this model that
Speaker 1: really inspired so many other companies to go out and
Speaker 1: hoard different crypto assets, whether we're talking about bitcoin or ether,
Speaker 1: this idea of a data digital ass exactly.
Speaker 4: Very so it's become like a direct proxy of Bitcoin's performance.
Speaker 2: Yeah.
Speaker 3: I feel like there's a period to where like almost
Speaker 3: every company was like wait, wait, you know, or we
Speaker 3: start to have these discussions back to they have something
Speaker 3: in terms of crypto or bitcoin on their balance sheet.
Speaker 3: I just want to point out Strategy at its high
Speaker 3: back in twenty twenty four, was almost a four hundred
Speaker 3: and seventy four dollars share stock and now it's at
Speaker 3: one oh nine and change, so unbelievable, quite a drop. Okay,
Speaker 3: Number two.
Speaker 4: Number two is alphabet. This one is an interesting one
Speaker 4: because even though the stock is lower today a lot
Speaker 4: of people were disappointed with that capex number, there's actually
Speaker 4: a lot for investors to be excited about. In this report,
Speaker 4: so the company did top up projections for quarterly revenue,
Speaker 4: and specifically in that Google Cloud unit, its revenue jumps
Speaker 4: forty eight percent to a whopping seventeen point seven billion
Speaker 4: dollars That handily topped Wall Street estimates of about sixteen
Speaker 4: point two billion dollars, so really solid number. There are
Speaker 4: also Gemini its AI model. It is rapidly reaching new users.
Speaker 4: The thing that disappointed investors is that CAPEX number. It
Speaker 4: will reach as much as one hundred and eighty five
Speaker 4: billion dollars, which compares to about one hundred and twenty
Speaker 4: billion dollars that Wall Street analysts were expecting, So that
Speaker 4: is a lot more. And for twenty twenty six, that
Speaker 4: CAPEX spending will total more than what it spent in
Speaker 4: the prior three years combined, So a lot of money.
Speaker 4: But at the same time, COEO Sindar Pachai says that
Speaker 4: these costs are necessary and they're actually seeing that their
Speaker 4: business monetize these AI investments. Obviously he's a little bit biased,
Speaker 4: but we also had Jeffrey's analysts say the same thing,
Speaker 4: that AI is actually paying off for Google.
Speaker 1: I mean, it's pretty amazing to see the growth in
Speaker 1: the active Gemini users going just increasing so much just
Speaker 1: over last quarter, right, and that's for the standalone Gemini app,
Speaker 1: not just for like anyone using its AI features in
Speaker 1: a different platform like in Search or in Gmail or something.
Speaker 2: Yeah.
Speaker 4: Absolutely, and also worth noting that the bar was just
Speaker 4: incredibly high into these big tech companies.
Speaker 3: I think it's also interesting. I mean, this dog bounced
Speaker 3: around so much in the aftermarket when it reported. It's
Speaker 3: been done as much as eight percent or almost eight
Speaker 3: percent today, so it has really come off of those
Speaker 3: lows today in a big way. So it's interesting as
Speaker 3: investors make their way all right from Alphabet to where sd.
Speaker 4: Latter just taking a very very big hit today actually
Speaker 4: seeing it's worst decline on It is down twenty one
Speaker 4: percent right now. This is after Even as the company
Speaker 4: did boost its outlook, it just wasn't enough for investors
Speaker 4: who were expecting more from their turnaround effort under their
Speaker 4: new CEO. The company narrowly beat Wall Street's expectations for
Speaker 4: revenue and adjusted earnings per share in its most recent quarters.
Speaker 4: They actually reported good growth in skincare products, so people
Speaker 4: were buying Lamaire and the ordinary. They were also buying
Speaker 4: up a lot of their fragrances, including tom Ford's perfumes
Speaker 4: and Lalava, which, by the way, is just a testament
Speaker 4: of the strength of the consumer. Because tom Ford Perfumes
Speaker 4: are something like three hundred dollars. It's expensive, but that
Speaker 4: segment did well, and the company also narrowed its outlook
Speaker 4: range for the net revenue growth for the period ending
Speaker 4: in June. It now forecast growth of three percent to
Speaker 4: five percent.
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