Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: I'm Carol Master, a longer term stat of it. Let's
Speaker 3: get to some stocks on the move. Joining us to
Speaker 3: do that, Bloomberg News cross at reporter Janiza Sikova. She
Speaker 3: is in the house and she's got to start with
Speaker 3: Amazon because this went under pressure in the aftermarket.
Speaker 4: Yeah, after a very tough day for tech stock, extending
Speaker 4: trade is not bringing too much relief. Looking at Amazon,
Speaker 4: it's down more than nine percent. The thicker, of course,
Speaker 4: is AMZN. It's coming off the earning supports. Company plans
Speaker 4: to spend two hundred billion this year on data centers,
Speaker 4: chips and other equipment. Everyone has been worried about AI spending,
Speaker 4: so that piece of information wasn't taken quite well. Everyone
Speaker 4: is wondering how much this will weigh on profits. And
Speaker 4: the number Amazon gave is that forecasts for operating income
Speaker 4: in the current quarter of about sixteen billion to twenty
Speaker 4: one billion, which is significantly lower than what the analysts estimated.
Speaker 4: And you can imagine that this pretty strong reaction nearly
Speaker 4: double digits now is coming on top of that, we
Speaker 4: also sentiment is pretty fragile. Microsoft and Alphabet reporter results
Speaker 4: earlier also spent heavily, also saw a lot of spending.
Speaker 4: Microsoft ended the day five percent lower. A lot of
Speaker 4: pressure there. Amazona is doing job cuts, for example. The
Speaker 4: total number of job cuts around thirty thousands is October.
Speaker 4: But yet the stock is under a lot of pressure,
Speaker 4: and we can see that investors are getting pretty worried
Speaker 4: about AI spending and the punishment is pretty rough. Yeah.
Speaker 3: Kind of interesting though, because Microsoft, of course reported last
Speaker 3: week they did get a downgrade, a rare downgrade on
Speaker 3: the street, but the street is overwhelmingly still bullish on
Speaker 3: this name. And then of course we had Alphabet reporting
Speaker 3: in the Wednesday after market and we did see that
Speaker 3: stock under pressure today, but it also finished off its
Speaker 3: loads of the session. So it's kind of interesting kind
Speaker 3: of how we see these names react. Let's get to
Speaker 3: another one in the aftermarket. We're talking about Strategy.
Speaker 4: Yeah, Strategy definitely has been at the center of this
Speaker 4: sell off. The company was already down thirty percent ear
Speaker 4: today before reporting the earning today. The ticker is MSTR
Speaker 4: in extended trading. It's about down about four percent. What
Speaker 4: we heard from the earnings announcement is that the company
Speaker 4: had a net loss of more than twelve billion in
Speaker 4: the fourth quarter. Obviously, the company has this strategy of
Speaker 4: hoarding bitcoin, and the bitcoin price has continued to tumble.
Speaker 4: It's about sixty three thousand now, so that has definitely
Speaker 4: weigh on the company. It's under so much pressure and
Speaker 4: it's kind of at the center of this speculative sale off.
Speaker 4: Shares traded above the value of it's holding for quite
Speaker 4: some time, but now and the company continued to buy bitcoin.
Speaker 4: This is the first time they don't know, is that
Speaker 4: So it's definitely thinks are definitely changing. That's it. Everyone
Speaker 4: is asking whether they're going to sell. The company faces
Speaker 4: no margin call and it has about more than two
Speaker 4: billions in cash. Okay, maybe the answer is no so far.
Speaker 1: And the stock moved before the earnings came out. It
Speaker 1: was down seventeen percent today. Yesterday it was down more
Speaker 1: than three percent. It was down, you know, two and
Speaker 1: a half percent the day before. As bitcoin has fallen.
Speaker 1: It doesn't often move with much with earnings because it's
Speaker 1: such It's like people know the price that the levered
Speaker 1: play on bitcoin. But what we want to know is, yeah,
Speaker 1: are you gonna have to sell bitcoin? What are you
Speaker 1: gonna use that cash?
Speaker 3: Is that reserve?
Speaker 1: Don't you want to ask more?
Speaker 4: Bitcoin?
Speaker 2: Is that reserved much?
Speaker 3: Are those reserves in cash? Are they cash? I mean
Speaker 3: in crypto or no?
Speaker 4: I think it's actual cash?
Speaker 3: Okay, interesting? Cool, I'm just saying cash was old school.
Speaker 3: Cash can be king even with a crypto company. All right,
Speaker 3: Just thirty seconds to.
Speaker 4: Private credit and private equity, which your house we called
Speaker 4: in the sale off ours management to both thir they
Speaker 4: the company is down twenty four percent ear today. Private
Speaker 4: asset firms, you know, that's been the main worry that
Speaker 4: they have so much exposure to software companies, as Ris
Speaker 4: Management is saying that their exposure is relatively minimal six
Speaker 4: percent of total assets. We've seen some predictions that the
Speaker 4: BCDs are have explosure about twenty percent of software company
Speaker 4: clearly says that's not a problem for them. The earnings
Speaker 4: report was pretty strong. Assets are at record six hundred
Speaker 4: and twenty two billion, but cleared investors are not pursued
Speaker 4: aided and the climate for private credit and private equity
Speaker 4: is not what it used to be just a few.
Speaker 2: Minutes back the Stock mover's report from Bloomberg Radio. Check
Speaker 2: back with us throughout the day for the latest roundup
Speaker 2: of companies making news on Wall Street and for the
Speaker 2: latest market moving headlines. Listen to Bloomberg Radio Live, catch
Speaker 2: us on YouTube, Bloomberg dot com, and on Applecarplay and
Speaker 2: Android Auto with the Bloomberg Business app.