1 00:00:02,480 --> 00:00:09,920 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:10,039 --> 00:00:13,520 Speaker 2: This is the closing bell on this stock movers report. 3 00:00:13,760 --> 00:00:16,680 Speaker 2: The company's making moves at the close of US trading 4 00:00:16,880 --> 00:00:21,360 Speaker 2: with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifel. 5 00:00:22,480 --> 00:00:24,439 Speaker 3: Let's get to some of the individual gainers as we 6 00:00:24,480 --> 00:00:29,400 Speaker 3: await earnings, and I'm going to start with Armholding Chips, 7 00:00:29,440 --> 00:00:32,000 Speaker 3: though certainly have been on our mind. Armholdings, though you 8 00:00:32,000 --> 00:00:33,920 Speaker 3: saw that one gain as much as eight and a 9 00:00:33,960 --> 00:00:35,760 Speaker 3: half percent intra day at its high. 10 00:00:35,880 --> 00:00:38,120 Speaker 1: I've got to interrupt you now here, Carol, my apologies. 11 00:00:38,159 --> 00:00:40,839 Speaker 1: Here Intel earnings crossing the wire right now, Let's go 12 00:00:40,920 --> 00:00:43,360 Speaker 1: straight to the revenue forecast for the first quarter. The 13 00:00:43,440 --> 00:00:47,640 Speaker 1: company says adjusted EPs will be zero. The street was 14 00:00:47,640 --> 00:00:50,320 Speaker 1: looking for eight cents a share. As for the revenue side, 15 00:00:50,320 --> 00:00:53,160 Speaker 1: the company says revenue for the first quarter, the quarter 16 00:00:53,200 --> 00:00:55,800 Speaker 1: that we're in right now, eleven point seven to twelve 17 00:00:55,800 --> 00:00:58,840 Speaker 1: point seven billion dollars. The street was looking on average 18 00:00:58,840 --> 00:01:02,080 Speaker 1: for twelve points six billion dollars. So the top end 19 00:01:02,080 --> 00:01:04,040 Speaker 1: of that range is right around what the street was 20 00:01:04,080 --> 00:01:05,880 Speaker 1: looking for, but of course it's a wide range of 21 00:01:05,880 --> 00:01:08,080 Speaker 1: about a billion dollars. Here that might be why you're 22 00:01:08,120 --> 00:01:10,640 Speaker 1: seeing some softness in the shares. As for the quarter 23 00:01:10,680 --> 00:01:13,840 Speaker 1: that just passed, the fourth quarter revenue did beat thirteen 24 00:01:13,880 --> 00:01:17,440 Speaker 1: point sixty seven billion, Adjusted operating margin did beat eight 25 00:01:17,440 --> 00:01:21,120 Speaker 1: point eight percent. Adjusted EPs also beat at fifteen cents 26 00:01:21,120 --> 00:01:23,680 Speaker 1: a share. The street was looking guys for eight point seven. 27 00:01:23,920 --> 00:01:25,840 Speaker 4: Yeah, that's the thing. You can see. Shore is actually 28 00:01:26,200 --> 00:01:28,920 Speaker 4: pairing their decline right now, down about one point three percent. 29 00:01:28,959 --> 00:01:31,399 Speaker 4: But it's vaudal out there. I mean, Romain makes a 30 00:01:31,400 --> 00:01:33,120 Speaker 4: good point that they'll look back when it comes to 31 00:01:33,160 --> 00:01:35,600 Speaker 4: the fourth quarter. They actually beat there when it comes 32 00:01:35,640 --> 00:01:38,800 Speaker 4: to the adjusted EPs, but certainly that first quarter outlook 33 00:01:39,000 --> 00:01:41,560 Speaker 4: tim is going to be disappointing for a stock that, 34 00:01:41,600 --> 00:01:43,920 Speaker 4: as Carol said, has had quite the run up. 35 00:01:44,160 --> 00:01:46,360 Speaker 5: Yeah, down four percent in the after hours, I'm going 36 00:01:46,360 --> 00:01:48,920 Speaker 5: through the press release and looking at commentary from Intel 37 00:01:49,120 --> 00:01:52,440 Speaker 5: CEO Lit Bhutan, who says our conviction in the central 38 00:01:52,480 --> 00:01:57,000 Speaker 5: role of cpo's CPUs in the AI era continues to grow. 39 00:01:57,280 --> 00:02:01,600 Speaker 5: He continues to say, our priorities are clear, sharpenexcution, reinvigorate 40 00:02:01,640 --> 00:02:05,040 Speaker 5: engineering excellence, and fully capitalize on the vast opportunity AI 41 00:02:05,120 --> 00:02:08,400 Speaker 5: presents across all of our businesses. Intel shares in the 42 00:02:08,440 --> 00:02:11,280 Speaker 5: after hours bouncing around a little bit, but down about 43 00:02:11,360 --> 00:02:12,680 Speaker 5: four point eight percent. 44 00:02:12,560 --> 00:02:14,919 Speaker 3: Just going to layer some commentary from the CFO Dave's 45 00:02:14,919 --> 00:02:18,280 Speaker 3: Instner also on Intel, saying it sees the lowest available 46 00:02:18,280 --> 00:02:21,360 Speaker 3: supply in the first quarter before improving in the second 47 00:02:21,440 --> 00:02:23,560 Speaker 3: quarter and beyond. So we have seen this with a 48 00:02:23,560 --> 00:02:25,520 Speaker 3: lot of the players in the chip sector. The demand 49 00:02:25,639 --> 00:02:27,440 Speaker 3: is there, but the supply they're not able to meet 50 00:02:27,440 --> 00:02:27,680 Speaker 3: it from. 51 00:02:27,880 --> 00:02:29,240 Speaker 1: You know, it's kind of interesting. We were speaking with 52 00:02:29,240 --> 00:02:31,720 Speaker 1: the Jay Goldberg over at Seaport earlier today. He's actually 53 00:02:31,720 --> 00:02:34,239 Speaker 1: relatively bullish on Intel. Wishould point out, this is a 54 00:02:34,240 --> 00:02:37,280 Speaker 1: stock that has something like thirty six holds something like seven. 55 00:02:37,080 --> 00:02:38,240 Speaker 2: Or eight cells. 56 00:02:38,280 --> 00:02:40,080 Speaker 1: There's only nine analysts out there on the street that 57 00:02:40,080 --> 00:02:41,520 Speaker 1: I would buy, and Jay is one of them, and 58 00:02:41,560 --> 00:02:43,560 Speaker 1: he actually thinks that they can actually start to ramp 59 00:02:43,639 --> 00:02:46,280 Speaker 1: up production on some of these chips. His biggest concern 60 00:02:46,760 --> 00:02:49,120 Speaker 1: was whether they can do that in a cost effective way. 61 00:02:49,160 --> 00:02:51,200 Speaker 1: He said, he's going to be really laser focused on 62 00:02:51,240 --> 00:02:53,160 Speaker 1: what this company has to say on the conference call 63 00:02:53,360 --> 00:02:54,720 Speaker 1: about those costs going forward. 64 00:02:54,840 --> 00:02:57,560 Speaker 4: It was also interesting to hear him explain why we 65 00:02:57,600 --> 00:03:00,480 Speaker 4: saw such a huge search in Intel Life asked year, 66 00:03:00,560 --> 00:03:03,480 Speaker 4: the question was whether Intel was going to be able 67 00:03:03,520 --> 00:03:06,200 Speaker 4: to continue to exist. Of course, now it has the 68 00:03:06,200 --> 00:03:09,919 Speaker 4: Trump administration's backing. The Trump administration does have a stake 69 00:03:10,040 --> 00:03:11,280 Speaker 4: in this company. 70 00:03:11,639 --> 00:03:13,600 Speaker 5: You have a steak in this company, Romayne is a 71 00:03:13,600 --> 00:03:16,280 Speaker 5: stake in this company. We own ten percent of this 72 00:03:16,360 --> 00:03:17,360 Speaker 5: company as Americans. 73 00:03:17,520 --> 00:03:19,640 Speaker 3: Yes, I think you bring up a really good point. 74 00:03:19,720 --> 00:03:22,960 Speaker 3: So is this the US backing trade or fundamentally is 75 00:03:23,000 --> 00:03:25,519 Speaker 3: this company getting on a better trajectory? And I think 76 00:03:25,560 --> 00:03:27,720 Speaker 3: that's where we've got to kind of watch and see 77 00:03:27,720 --> 00:03:29,840 Speaker 3: what else commentary we get from this company and is 78 00:03:29,880 --> 00:03:32,480 Speaker 3: it able to stick around for a long time. 79 00:03:32,760 --> 00:03:34,840 Speaker 1: I think I'll be interesting whether how they address that 80 00:03:34,880 --> 00:03:36,400 Speaker 1: on the conference call. And I think it's kind of 81 00:03:36,600 --> 00:03:38,440 Speaker 1: the answer to your questions kind of yes and yes, right, 82 00:03:38,480 --> 00:03:41,320 Speaker 1: this is still about basic, good old fashion corporate fundamentals. 83 00:03:41,320 --> 00:03:43,760 Speaker 1: But also, like it's placed in the AI space, does 84 00:03:43,800 --> 00:03:46,200 Speaker 1: that relationship with the US, that ten percent steak and 85 00:03:46,400 --> 00:03:49,080 Speaker 1: whatever sort of things the White House can use their 86 00:03:49,080 --> 00:03:51,600 Speaker 1: bullying bulpit for to sort of help this company build out, 87 00:03:52,120 --> 00:03:54,000 Speaker 1: does that become the fundamental story? I don't know. 88 00:03:54,560 --> 00:03:57,400 Speaker 4: I also want to point out it's foundry revenue. Excited 89 00:03:57,400 --> 00:03:59,680 Speaker 4: to get more color there, foundry revenue coming in the 90 00:03:59,720 --> 00:04:02,960 Speaker 4: fourth quarter five point or four point five to one 91 00:04:03,000 --> 00:04:05,880 Speaker 4: billion dollars. The estimate had actually been for four point 92 00:04:05,960 --> 00:04:08,480 Speaker 4: three six billion dollars, So actually a bit of a 93 00:04:08,520 --> 00:04:11,440 Speaker 4: surprise there. The big question is, you know, what does 94 00:04:11,480 --> 00:04:15,360 Speaker 4: the customer acquisition strategy look like? Are they adding new 95 00:04:15,440 --> 00:04:19,040 Speaker 4: clients there? One of the big fundamental questions about Intel 96 00:04:19,080 --> 00:04:21,760 Speaker 4: at this juncture and their place, to Romaine's point in 97 00:04:21,839 --> 00:04:22,720 Speaker 4: this AI space. 98 00:04:23,000 --> 00:04:25,159 Speaker 5: Just to reiterate some headlines as we watch, Intel shares 99 00:04:25,160 --> 00:04:27,479 Speaker 5: down about five percent in the after hours. The company 100 00:04:27,480 --> 00:04:31,039 Speaker 5: says it's making good progress in fourteen A production. Lib 101 00:04:31,040 --> 00:04:33,720 Speaker 5: Bhutan says production yields not up to standards, and the 102 00:04:33,760 --> 00:04:36,400 Speaker 5: CEO says chip maker missed a lot of opportunities and 103 00:04:36,440 --> 00:04:39,400 Speaker 5: says they can't get enough supply to meet orders though 104 00:04:39,440 --> 00:04:41,000 Speaker 5: demand is quite strong. 105 00:04:41,080 --> 00:04:43,479 Speaker 3: All right, guys, let's go to Capital One Financial, also 106 00:04:43,560 --> 00:04:47,200 Speaker 3: reporting its earnings after the closing bell, and you've got 107 00:04:47,240 --> 00:04:49,960 Speaker 3: a couple of headlines. But let's get to one from 108 00:04:49,960 --> 00:04:52,360 Speaker 3: the Wall Street Journal that it is planning to buy 109 00:04:52,560 --> 00:04:55,720 Speaker 3: Brex for five point fifteen billion in a cash and 110 00:04:55,800 --> 00:05:00,679 Speaker 3: stock deal. So some movement within another financial another banking 111 00:05:00,720 --> 00:05:03,000 Speaker 3: company in terms of an acquisition, a pretty sizable one 112 00:05:03,040 --> 00:05:04,719 Speaker 3: if you will. The stock right now, that's a big deal, 113 00:05:04,920 --> 00:05:10,080 Speaker 3: down about two point six percent, so again confirming that pact. 114 00:05:10,760 --> 00:05:12,400 Speaker 3: And I'm just going to kind of do a quick 115 00:05:12,480 --> 00:05:14,839 Speaker 3: look at fourth justity but go sorry, but. 116 00:05:14,880 --> 00:05:16,240 Speaker 1: I just want to say on the brex deal, because 117 00:05:16,279 --> 00:05:17,680 Speaker 1: that's a big deal because we've been talking a lot 118 00:05:17,680 --> 00:05:20,760 Speaker 1: about these credit card potential caps on credit card rate 119 00:05:20,839 --> 00:05:23,479 Speaker 1: thes and Brex's I mean, this is basically rewards and 120 00:05:23,880 --> 00:05:26,080 Speaker 1: kind of everything not really fee related at least. That's 121 00:05:26,120 --> 00:05:28,320 Speaker 1: their sort of bread and butter, the technology and the 122 00:05:28,400 --> 00:05:30,400 Speaker 1: rewards that go along with it. So it's kind of 123 00:05:30,400 --> 00:05:33,520 Speaker 1: interesting to see Capital One leaning deeper into that reward space. 124 00:05:33,839 --> 00:05:35,760 Speaker 5: Yeah, I'm looking at the Wall Street Journal right up 125 00:05:35,800 --> 00:05:38,719 Speaker 5: of this. It oversees brex overseas close to thirteen billion 126 00:05:38,760 --> 00:05:42,160 Speaker 5: dollars in deposits held at partner banks and money market funds. 127 00:05:42,200 --> 00:05:45,320 Speaker 5: The acquisition expected to close in the second quarter of 128 00:05:45,360 --> 00:05:48,400 Speaker 5: this year. Brexas' CEO will plan to continue in the 129 00:05:48,480 --> 00:05:51,680 Speaker 5: role after this deal closes. Capital One Financial shares down 130 00:05:51,720 --> 00:05:53,599 Speaker 5: in the offt hours by about four point three percent. 131 00:05:53,680 --> 00:05:56,280 Speaker 3: All right, folks, back to inutil we go, because we've 132 00:05:56,279 --> 00:05:59,039 Speaker 3: seen this one kicking around in the aftermarket again. The 133 00:05:59,040 --> 00:06:02,559 Speaker 3: headline the company giving a lackluster forecast for the current quarter, 134 00:06:02,920 --> 00:06:05,680 Speaker 3: talking about supply shortages are making it harder to meet 135 00:06:05,680 --> 00:06:09,000 Speaker 3: customer demand. So once again a disappointment for investors who 136 00:06:09,160 --> 00:06:11,799 Speaker 3: kind were looking for more of a boost from new products. 137 00:06:11,839 --> 00:06:14,680 Speaker 3: And you can see Intel shares they are just trading 138 00:06:14,760 --> 00:06:18,080 Speaker 3: down about three percent here in the aftermarket. And keep 139 00:06:18,080 --> 00:06:20,800 Speaker 3: in mind this has been a top performer among the 140 00:06:20,839 --> 00:06:23,040 Speaker 3: semiconductor names over the last year or so. 141 00:06:24,480 --> 00:06:28,520 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 142 00:06:28,600 --> 00:06:31,160 Speaker 2: us throughout the day for the latest roundup of companies 143 00:06:31,240 --> 00:06:34,320 Speaker 2: making news on Wall Street and for the latest market 144 00:06:34,360 --> 00:06:38,839 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 145 00:06:38,920 --> 00:06:42,440 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 146 00:06:42,480 --> 00:06:44,000 Speaker 2: the Bloomberg Business app.