WEBVTT - Closing Bell: Carvana Climbs, Abbott Drops, Intel Gives Weak Forecast

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

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<v Speaker 2>This is the closing bell on this stock movers report.

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<v Speaker 2>The company's making moves at the close of US trading

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<v Speaker 2>with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifel.

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<v Speaker 3>Let's get to some of the individual gainers as we

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<v Speaker 3>await earnings, and I'm going to start with Armholding Chips,

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<v Speaker 3>though certainly have been on our mind. Armholdings, though you

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<v Speaker 3>saw that one gain as much as eight and a

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<v Speaker 3>half percent intra day at its high.

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<v Speaker 1>I've got to interrupt you now here, Carol, my apologies.

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<v Speaker 1>Here Intel earnings crossing the wire right now, Let's go

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<v Speaker 1>straight to the revenue forecast for the first quarter. The

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<v Speaker 1>company says adjusted EPs will be zero. The street was

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<v Speaker 1>looking for eight cents a share. As for the revenue side,

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<v Speaker 1>the company says revenue for the first quarter, the quarter

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<v Speaker 1>that we're in right now, eleven point seven to twelve

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<v Speaker 1>point seven billion dollars. The street was looking on average

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<v Speaker 1>for twelve points six billion dollars. So the top end

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<v Speaker 1>of that range is right around what the street was

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<v Speaker 1>looking for, but of course it's a wide range of

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<v Speaker 1>about a billion dollars. Here that might be why you're

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<v Speaker 1>seeing some softness in the shares. As for the quarter

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<v Speaker 1>that just passed, the fourth quarter revenue did beat thirteen

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<v Speaker 1>point sixty seven billion, Adjusted operating margin did beat eight

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<v Speaker 1>point eight percent. Adjusted EPs also beat at fifteen cents

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<v Speaker 1>a share. The street was looking guys for eight point seven.

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<v Speaker 4>Yeah, that's the thing. You can see. Shore is actually

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<v Speaker 4>pairing their decline right now, down about one point three percent.

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<v Speaker 4>But it's vaudal out there. I mean, Romain makes a

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<v Speaker 4>good point that they'll look back when it comes to

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<v Speaker 4>the fourth quarter. They actually beat there when it comes

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<v Speaker 4>to the adjusted EPs, but certainly that first quarter outlook

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<v Speaker 4>tim is going to be disappointing for a stock that,

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<v Speaker 4>as Carol said, has had quite the run up.

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<v Speaker 5>Yeah, down four percent in the after hours, I'm going

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<v Speaker 5>through the press release and looking at commentary from Intel

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<v Speaker 5>CEO Lit Bhutan, who says our conviction in the central

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<v Speaker 5>role of cpo's CPUs in the AI era continues to grow.

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<v Speaker 5>He continues to say, our priorities are clear, sharpenexcution, reinvigorate

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<v Speaker 5>engineering excellence, and fully capitalize on the vast opportunity AI

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<v Speaker 5>presents across all of our businesses. Intel shares in the

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<v Speaker 5>after hours bouncing around a little bit, but down about

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<v Speaker 5>four point eight percent.

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<v Speaker 3>Just going to layer some commentary from the CFO Dave's

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<v Speaker 3>Instner also on Intel, saying it sees the lowest available

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<v Speaker 3>supply in the first quarter before improving in the second

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<v Speaker 3>quarter and beyond. So we have seen this with a

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<v Speaker 3>lot of the players in the chip sector. The demand

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<v Speaker 3>is there, but the supply they're not able to meet

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<v Speaker 3>it from.

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<v Speaker 1>You know, it's kind of interesting. We were speaking with

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<v Speaker 1>the Jay Goldberg over at Seaport earlier today. He's actually

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<v Speaker 1>relatively bullish on Intel. Wishould point out, this is a

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<v Speaker 1>stock that has something like thirty six holds something like seven.

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<v Speaker 2>Or eight cells.

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<v Speaker 1>There's only nine analysts out there on the street that

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<v Speaker 1>I would buy, and Jay is one of them, and

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<v Speaker 1>he actually thinks that they can actually start to ramp

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<v Speaker 1>up production on some of these chips. His biggest concern

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<v Speaker 1>was whether they can do that in a cost effective way.

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<v Speaker 1>He said, he's going to be really laser focused on

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<v Speaker 1>what this company has to say on the conference call

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<v Speaker 1>about those costs going forward.

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<v Speaker 4>It was also interesting to hear him explain why we

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<v Speaker 4>saw such a huge search in Intel Life asked year,

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<v Speaker 4>the question was whether Intel was going to be able

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<v Speaker 4>to continue to exist. Of course, now it has the

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<v Speaker 4>Trump administration's backing. The Trump administration does have a stake

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<v Speaker 4>in this company.

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<v Speaker 5>You have a steak in this company, Romayne is a

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<v Speaker 5>stake in this company. We own ten percent of this

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<v Speaker 5>company as Americans.

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<v Speaker 3>Yes, I think you bring up a really good point.

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<v Speaker 3>So is this the US backing trade or fundamentally is

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<v Speaker 3>this company getting on a better trajectory? And I think

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<v Speaker 3>that's where we've got to kind of watch and see

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<v Speaker 3>what else commentary we get from this company and is

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<v Speaker 3>it able to stick around for a long time.

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<v Speaker 1>I think I'll be interesting whether how they address that

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<v Speaker 1>on the conference call. And I think it's kind of

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<v Speaker 1>the answer to your questions kind of yes and yes, right,

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<v Speaker 1>this is still about basic, good old fashion corporate fundamentals.

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<v Speaker 1>But also, like it's placed in the AI space, does

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<v Speaker 1>that relationship with the US, that ten percent steak and

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<v Speaker 1>whatever sort of things the White House can use their

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<v Speaker 1>bullying bulpit for to sort of help this company build out,

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<v Speaker 1>does that become the fundamental story? I don't know.

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<v Speaker 4>I also want to point out it's foundry revenue. Excited

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<v Speaker 4>to get more color there, foundry revenue coming in the

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<v Speaker 4>fourth quarter five point or four point five to one

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<v Speaker 4>billion dollars. The estimate had actually been for four point

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<v Speaker 4>three six billion dollars, So actually a bit of a

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<v Speaker 4>surprise there. The big question is, you know, what does

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<v Speaker 4>the customer acquisition strategy look like? Are they adding new

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<v Speaker 4>clients there? One of the big fundamental questions about Intel

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<v Speaker 4>at this juncture and their place, to Romaine's point in

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<v Speaker 4>this AI space.

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<v Speaker 5>Just to reiterate some headlines as we watch, Intel shares

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<v Speaker 5>down about five percent in the after hours. The company

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<v Speaker 5>says it's making good progress in fourteen A production. Lib

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<v Speaker 5>Bhutan says production yields not up to standards, and the

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<v Speaker 5>CEO says chip maker missed a lot of opportunities and

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<v Speaker 5>says they can't get enough supply to meet orders though

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<v Speaker 5>demand is quite strong.

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<v Speaker 3>All right, guys, let's go to Capital One Financial, also

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<v Speaker 3>reporting its earnings after the closing bell, and you've got

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<v Speaker 3>a couple of headlines. But let's get to one from

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<v Speaker 3>the Wall Street Journal that it is planning to buy

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<v Speaker 3>Brex for five point fifteen billion in a cash and

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<v Speaker 3>stock deal. So some movement within another financial another banking

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<v Speaker 3>company in terms of an acquisition, a pretty sizable one

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<v Speaker 3>if you will. The stock right now, that's a big deal,

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<v Speaker 3>down about two point six percent, so again confirming that pact.

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<v Speaker 3>And I'm just going to kind of do a quick

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<v Speaker 3>look at fourth justity but go sorry, but.

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<v Speaker 1>I just want to say on the brex deal, because

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<v Speaker 1>that's a big deal because we've been talking a lot

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<v Speaker 1>about these credit card potential caps on credit card rate

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<v Speaker 1>thes and Brex's I mean, this is basically rewards and

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<v Speaker 1>kind of everything not really fee related at least. That's

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<v Speaker 1>their sort of bread and butter, the technology and the

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<v Speaker 1>rewards that go along with it. So it's kind of

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<v Speaker 1>interesting to see Capital One leaning deeper into that reward space.

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<v Speaker 5>Yeah, I'm looking at the Wall Street Journal right up

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<v Speaker 5>of this. It oversees brex overseas close to thirteen billion

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<v Speaker 5>dollars in deposits held at partner banks and money market funds.

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<v Speaker 5>The acquisition expected to close in the second quarter of

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<v Speaker 5>this year. Brexas' CEO will plan to continue in the

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<v Speaker 5>role after this deal closes. Capital One Financial shares down

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<v Speaker 5>in the offt hours by about four point three percent.

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<v Speaker 3>All right, folks, back to inutil we go, because we've

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<v Speaker 3>seen this one kicking around in the aftermarket again. The

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<v Speaker 3>headline the company giving a lackluster forecast for the current quarter,

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<v Speaker 3>talking about supply shortages are making it harder to meet

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<v Speaker 3>customer demand. So once again a disappointment for investors who

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<v Speaker 3>kind were looking for more of a boost from new products.

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<v Speaker 3>And you can see Intel shares they are just trading

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<v Speaker 3>down about three percent here in the aftermarket. And keep

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<v Speaker 3>in mind this has been a top performer among the

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<v Speaker 3>semiconductor names over the last year or so.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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