1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,920 --> 00:00:18,880 Speaker 3: I'm Carol Master, a longer term stat of it. Let's 5 00:00:18,880 --> 00:00:21,200 Speaker 3: get to some stocks on the move. Joining us to 6 00:00:21,239 --> 00:00:24,239 Speaker 3: do that, Bloomberg News cross at reporter Janiza Sikova. She 7 00:00:24,400 --> 00:00:26,439 Speaker 3: is in the house and she's got to start with 8 00:00:26,520 --> 00:00:29,160 Speaker 3: Amazon because this went under pressure in the aftermarket. 9 00:00:29,560 --> 00:00:32,880 Speaker 4: Yeah, after a very tough day for tech stock, extending 10 00:00:33,000 --> 00:00:36,839 Speaker 4: trade is not bringing too much relief. Looking at Amazon, 11 00:00:37,000 --> 00:00:39,680 Speaker 4: it's down more than nine percent. The thicker, of course, 12 00:00:39,920 --> 00:00:44,360 Speaker 4: is AMZN. It's coming off the earning supports. Company plans 13 00:00:44,360 --> 00:00:47,599 Speaker 4: to spend two hundred billion this year on data centers, 14 00:00:47,680 --> 00:00:51,839 Speaker 4: chips and other equipment. Everyone has been worried about AI spending, 15 00:00:51,920 --> 00:00:56,320 Speaker 4: so that piece of information wasn't taken quite well. Everyone 16 00:00:56,440 --> 00:00:59,120 Speaker 4: is wondering how much this will weigh on profits. And 17 00:00:59,160 --> 00:01:03,680 Speaker 4: the number Amazon gave is that forecasts for operating income 18 00:01:03,720 --> 00:01:07,080 Speaker 4: in the current quarter of about sixteen billion to twenty 19 00:01:07,080 --> 00:01:11,479 Speaker 4: one billion, which is significantly lower than what the analysts estimated. 20 00:01:11,520 --> 00:01:14,680 Speaker 4: And you can imagine that this pretty strong reaction nearly 21 00:01:14,720 --> 00:01:18,200 Speaker 4: double digits now is coming on top of that, we 22 00:01:18,360 --> 00:01:22,920 Speaker 4: also sentiment is pretty fragile. Microsoft and Alphabet reporter results 23 00:01:22,920 --> 00:01:28,560 Speaker 4: earlier also spent heavily, also saw a lot of spending. 24 00:01:28,640 --> 00:01:31,560 Speaker 4: Microsoft ended the day five percent lower. A lot of 25 00:01:31,560 --> 00:01:36,560 Speaker 4: pressure there. Amazona is doing job cuts, for example. The 26 00:01:36,600 --> 00:01:39,919 Speaker 4: total number of job cuts around thirty thousands is October. 27 00:01:40,120 --> 00:01:41,880 Speaker 4: But yet the stock is under a lot of pressure, 28 00:01:41,959 --> 00:01:46,160 Speaker 4: and we can see that investors are getting pretty worried 29 00:01:46,200 --> 00:01:49,800 Speaker 4: about AI spending and the punishment is pretty rough. Yeah. 30 00:01:49,880 --> 00:01:52,520 Speaker 3: Kind of interesting though, because Microsoft, of course reported last 31 00:01:52,520 --> 00:01:55,400 Speaker 3: week they did get a downgrade, a rare downgrade on 32 00:01:55,400 --> 00:01:58,840 Speaker 3: the street, but the street is overwhelmingly still bullish on 33 00:01:58,880 --> 00:02:01,840 Speaker 3: this name. And then of course we had Alphabet reporting 34 00:02:02,600 --> 00:02:05,440 Speaker 3: in the Wednesday after market and we did see that 35 00:02:05,560 --> 00:02:08,000 Speaker 3: stock under pressure today, but it also finished off its 36 00:02:08,040 --> 00:02:10,280 Speaker 3: loads of the session. So it's kind of interesting kind 37 00:02:10,280 --> 00:02:12,760 Speaker 3: of how we see these names react. Let's get to 38 00:02:12,800 --> 00:02:15,440 Speaker 3: another one in the aftermarket. We're talking about Strategy. 39 00:02:15,800 --> 00:02:18,000 Speaker 4: Yeah, Strategy definitely has been at the center of this 40 00:02:18,160 --> 00:02:21,200 Speaker 4: sell off. The company was already down thirty percent ear 41 00:02:21,240 --> 00:02:25,079 Speaker 4: today before reporting the earning today. The ticker is MSTR 42 00:02:25,240 --> 00:02:29,280 Speaker 4: in extended trading. It's about down about four percent. What 43 00:02:29,320 --> 00:02:32,120 Speaker 4: we heard from the earnings announcement is that the company 44 00:02:32,120 --> 00:02:35,480 Speaker 4: had a net loss of more than twelve billion in 45 00:02:35,560 --> 00:02:39,240 Speaker 4: the fourth quarter. Obviously, the company has this strategy of 46 00:02:39,280 --> 00:02:42,960 Speaker 4: hoarding bitcoin, and the bitcoin price has continued to tumble. 47 00:02:43,000 --> 00:02:45,960 Speaker 4: It's about sixty three thousand now, so that has definitely 48 00:02:46,040 --> 00:02:48,840 Speaker 4: weigh on the company. It's under so much pressure and 49 00:02:48,919 --> 00:02:52,320 Speaker 4: it's kind of at the center of this speculative sale off. 50 00:02:53,040 --> 00:02:56,280 Speaker 4: Shares traded above the value of it's holding for quite 51 00:02:56,280 --> 00:02:59,360 Speaker 4: some time, but now and the company continued to buy bitcoin. 52 00:02:59,440 --> 00:03:00,880 Speaker 4: This is the first time they don't know, is that 53 00:03:01,040 --> 00:03:04,880 Speaker 4: So it's definitely thinks are definitely changing. That's it. Everyone 54 00:03:04,960 --> 00:03:08,040 Speaker 4: is asking whether they're going to sell. The company faces 55 00:03:08,040 --> 00:03:10,399 Speaker 4: no margin call and it has about more than two 56 00:03:10,400 --> 00:03:14,240 Speaker 4: billions in cash. Okay, maybe the answer is no so far. 57 00:03:14,400 --> 00:03:16,960 Speaker 1: And the stock moved before the earnings came out. It 58 00:03:17,000 --> 00:03:20,000 Speaker 1: was down seventeen percent today. Yesterday it was down more 59 00:03:20,040 --> 00:03:22,239 Speaker 1: than three percent. It was down, you know, two and 60 00:03:22,240 --> 00:03:24,520 Speaker 1: a half percent the day before. As bitcoin has fallen. 61 00:03:24,680 --> 00:03:27,520 Speaker 1: It doesn't often move with much with earnings because it's 62 00:03:27,520 --> 00:03:29,560 Speaker 1: such It's like people know the price that the levered 63 00:03:29,560 --> 00:03:33,280 Speaker 1: play on bitcoin. But what we want to know is, yeah, 64 00:03:33,680 --> 00:03:35,160 Speaker 1: are you gonna have to sell bitcoin? What are you 65 00:03:35,160 --> 00:03:35,800 Speaker 1: gonna use that cash? 66 00:03:35,960 --> 00:03:36,520 Speaker 3: Is that reserve? 67 00:03:36,640 --> 00:03:37,800 Speaker 1: Don't you want to ask more? 68 00:03:37,840 --> 00:03:38,200 Speaker 4: Bitcoin? 69 00:03:38,320 --> 00:03:39,280 Speaker 2: Is that reserved much? 70 00:03:39,840 --> 00:03:42,400 Speaker 3: Are those reserves in cash? Are they cash? I mean 71 00:03:42,400 --> 00:03:43,200 Speaker 3: in crypto or no? 72 00:03:43,480 --> 00:03:44,640 Speaker 4: I think it's actual cash? 73 00:03:44,720 --> 00:03:48,440 Speaker 3: Okay, interesting? Cool, I'm just saying cash was old school. 74 00:03:48,520 --> 00:03:52,720 Speaker 3: Cash can be king even with a crypto company. All right, 75 00:03:53,000 --> 00:03:54,120 Speaker 3: Just thirty seconds to. 76 00:03:54,160 --> 00:03:57,000 Speaker 4: Private credit and private equity, which your house we called 77 00:03:57,160 --> 00:04:00,200 Speaker 4: in the sale off ours management to both thir they 78 00:04:00,360 --> 00:04:04,160 Speaker 4: the company is down twenty four percent ear today. Private 79 00:04:04,160 --> 00:04:06,720 Speaker 4: asset firms, you know, that's been the main worry that 80 00:04:06,760 --> 00:04:09,839 Speaker 4: they have so much exposure to software companies, as Ris 81 00:04:09,920 --> 00:04:13,720 Speaker 4: Management is saying that their exposure is relatively minimal six 82 00:04:13,760 --> 00:04:17,200 Speaker 4: percent of total assets. We've seen some predictions that the 83 00:04:17,400 --> 00:04:21,000 Speaker 4: BCDs are have explosure about twenty percent of software company 84 00:04:21,000 --> 00:04:23,520 Speaker 4: clearly says that's not a problem for them. The earnings 85 00:04:23,560 --> 00:04:27,679 Speaker 4: report was pretty strong. Assets are at record six hundred 86 00:04:27,680 --> 00:04:30,920 Speaker 4: and twenty two billion, but cleared investors are not pursued 87 00:04:31,000 --> 00:04:34,640 Speaker 4: aided and the climate for private credit and private equity 88 00:04:34,960 --> 00:04:36,960 Speaker 4: is not what it used to be just a few. 89 00:04:36,760 --> 00:04:42,320 Speaker 2: Minutes back the Stock mover's report from Bloomberg Radio. Check 90 00:04:42,360 --> 00:04:44,719 Speaker 2: back with us throughout the day for the latest roundup 91 00:04:44,760 --> 00:04:47,680 Speaker 2: of companies making news on Wall Street and for the 92 00:04:47,760 --> 00:04:52,200 Speaker 2: latest market moving headlines. 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