WEBVTT - Amazon Shares Dip After Earnings

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>I'm Carol Master, a longer term stat of it. Let's

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<v Speaker 3>get to some stocks on the move. Joining us to

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<v Speaker 3>do that, Bloomberg News cross at reporter Janiza Sikova. She

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<v Speaker 3>is in the house and she's got to start with

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<v Speaker 3>Amazon because this went under pressure in the aftermarket.

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<v Speaker 4>Yeah, after a very tough day for tech stock, extending

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<v Speaker 4>trade is not bringing too much relief. Looking at Amazon,

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<v Speaker 4>it's down more than nine percent. The thicker, of course,

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<v Speaker 4>is AMZN. It's coming off the earning supports. Company plans

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<v Speaker 4>to spend two hundred billion this year on data centers,

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<v Speaker 4>chips and other equipment. Everyone has been worried about AI spending,

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<v Speaker 4>so that piece of information wasn't taken quite well. Everyone

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<v Speaker 4>is wondering how much this will weigh on profits. And

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<v Speaker 4>the number Amazon gave is that forecasts for operating income

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<v Speaker 4>in the current quarter of about sixteen billion to twenty

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<v Speaker 4>one billion, which is significantly lower than what the analysts estimated.

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<v Speaker 4>And you can imagine that this pretty strong reaction nearly

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<v Speaker 4>double digits now is coming on top of that, we

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<v Speaker 4>also sentiment is pretty fragile. Microsoft and Alphabet reporter results

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<v Speaker 4>earlier also spent heavily, also saw a lot of spending.

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<v Speaker 4>Microsoft ended the day five percent lower. A lot of

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<v Speaker 4>pressure there. Amazona is doing job cuts, for example. The

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<v Speaker 4>total number of job cuts around thirty thousands is October.

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<v Speaker 4>But yet the stock is under a lot of pressure,

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<v Speaker 4>and we can see that investors are getting pretty worried

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<v Speaker 4>about AI spending and the punishment is pretty rough. Yeah.

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<v Speaker 3>Kind of interesting though, because Microsoft, of course reported last

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<v Speaker 3>week they did get a downgrade, a rare downgrade on

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<v Speaker 3>the street, but the street is overwhelmingly still bullish on

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<v Speaker 3>this name. And then of course we had Alphabet reporting

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<v Speaker 3>in the Wednesday after market and we did see that

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<v Speaker 3>stock under pressure today, but it also finished off its

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<v Speaker 3>loads of the session. So it's kind of interesting kind

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<v Speaker 3>of how we see these names react. Let's get to

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<v Speaker 3>another one in the aftermarket. We're talking about Strategy.

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<v Speaker 4>Yeah, Strategy definitely has been at the center of this

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<v Speaker 4>sell off. The company was already down thirty percent ear

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<v Speaker 4>today before reporting the earning today. The ticker is MSTR

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<v Speaker 4>in extended trading. It's about down about four percent. What

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<v Speaker 4>we heard from the earnings announcement is that the company

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<v Speaker 4>had a net loss of more than twelve billion in

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<v Speaker 4>the fourth quarter. Obviously, the company has this strategy of

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<v Speaker 4>hoarding bitcoin, and the bitcoin price has continued to tumble.

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<v Speaker 4>It's about sixty three thousand now, so that has definitely

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<v Speaker 4>weigh on the company. It's under so much pressure and

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<v Speaker 4>it's kind of at the center of this speculative sale off.

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<v Speaker 4>Shares traded above the value of it's holding for quite

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<v Speaker 4>some time, but now and the company continued to buy bitcoin.

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<v Speaker 4>This is the first time they don't know, is that

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<v Speaker 4>So it's definitely thinks are definitely changing. That's it. Everyone

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<v Speaker 4>is asking whether they're going to sell. The company faces

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<v Speaker 4>no margin call and it has about more than two

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<v Speaker 4>billions in cash. Okay, maybe the answer is no so far.

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<v Speaker 1>And the stock moved before the earnings came out. It

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<v Speaker 1>was down seventeen percent today. Yesterday it was down more

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<v Speaker 1>than three percent. It was down, you know, two and

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<v Speaker 1>a half percent the day before. As bitcoin has fallen.

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<v Speaker 1>It doesn't often move with much with earnings because it's

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<v Speaker 1>such It's like people know the price that the levered

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<v Speaker 1>play on bitcoin. But what we want to know is, yeah,

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<v Speaker 1>are you gonna have to sell bitcoin? What are you

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<v Speaker 1>gonna use that cash?

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<v Speaker 3>Is that reserve?

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<v Speaker 1>Don't you want to ask more?

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<v Speaker 4>Bitcoin?

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<v Speaker 2>Is that reserved much?

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<v Speaker 3>Are those reserves in cash? Are they cash? I mean

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<v Speaker 3>in crypto or no?

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<v Speaker 4>I think it's actual cash?

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<v Speaker 3>Okay, interesting? Cool, I'm just saying cash was old school.

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<v Speaker 3>Cash can be king even with a crypto company. All right,

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<v Speaker 3>Just thirty seconds to.

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<v Speaker 4>Private credit and private equity, which your house we called

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<v Speaker 4>in the sale off ours management to both thir they

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<v Speaker 4>the company is down twenty four percent ear today. Private

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<v Speaker 4>asset firms, you know, that's been the main worry that

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<v Speaker 4>they have so much exposure to software companies, as Ris

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<v Speaker 4>Management is saying that their exposure is relatively minimal six

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<v Speaker 4>percent of total assets. We've seen some predictions that the

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<v Speaker 4>BCDs are have explosure about twenty percent of software company

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<v Speaker 4>clearly says that's not a problem for them. The earnings

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<v Speaker 4>report was pretty strong. Assets are at record six hundred

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<v Speaker 4>and twenty two billion, but cleared investors are not pursued

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<v Speaker 4>aided and the climate for private credit and private equity

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<v Speaker 4>is not what it used to be just a few.

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