WEBVTT - Alphabet Plans Record Spending; Qualcomm Gives Tepid Forecast; Estee Lauder Slides 

0:00:02.520 --> 0:00:08.640
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg data.

0:00:16.360 --> 0:00:18.279
<v Speaker 1>Let's take a look at some stocks on the move today.

0:00:18.320 --> 0:00:20.919
<v Speaker 1>I'm Nathan Hager, joined by Bloomberg's Dan Curtis or The

0:00:21.000 --> 0:00:23.040
<v Speaker 1>report brought to you by the number. One hundred and

0:00:23.079 --> 0:00:26.440
<v Speaker 1>eighty five billion, the number we are hearing this morning

0:00:26.760 --> 0:00:28.400
<v Speaker 1>from Google parent Alphabet.

0:00:28.440 --> 0:00:31.160
<v Speaker 3>Good morning Dan, Good morning Nathan. That's right, it's the

0:00:31.200 --> 0:00:33.720
<v Speaker 3>number I've probably heard the most all day. One hundred

0:00:33.800 --> 0:00:37.480
<v Speaker 3>and eighty five billion dollars in capex. That's how much

0:00:37.520 --> 0:00:41.480
<v Speaker 3>Alphabet is planning to spend this year. Absolutely monstrous number,

0:00:41.560 --> 0:00:45.240
<v Speaker 3>topping piers, fifty percent higher than esthmus, just really taking

0:00:45.520 --> 0:00:48.760
<v Speaker 3>blowing the street away. So Alphabet shares are down about

0:00:48.760 --> 0:00:51.920
<v Speaker 3>three percent in the pre market. Analysts are mixed on

0:00:52.080 --> 0:00:54.160
<v Speaker 3>that number. It's a lot of money. It'd be a

0:00:54.200 --> 0:00:57.080
<v Speaker 3>lot of money for me. But it also does signal

0:00:57.160 --> 0:00:59.480
<v Speaker 3>confidence in the AI trade, right, So if you're going

0:00:59.520 --> 0:01:02.320
<v Speaker 3>to do something, do it big. That's what Alphabet is

0:01:02.360 --> 0:01:05.320
<v Speaker 3>looking to do. The four Q numbers did come out

0:01:05.480 --> 0:01:09.280
<v Speaker 3>top bottom lines both beat search revenues were up seventeen percent.

0:01:09.360 --> 0:01:13.120
<v Speaker 3>That shows it's vending off chat GPT competition. Cloud revenue

0:01:13.120 --> 0:01:16.720
<v Speaker 3>grew nearly fifty percent, so it's still getting growth from

0:01:16.720 --> 0:01:18.880
<v Speaker 3>that AI from the money where it's looking to invest.

0:01:19.080 --> 0:01:22.120
<v Speaker 3>The Gemini app has seven hundred and fifty million monthly users,

0:01:22.360 --> 0:01:24.000
<v Speaker 3>so it looks like it's on the right foot for

0:01:24.080 --> 0:01:26.800
<v Speaker 3>the AI trade. Just the amount of money that's spending

0:01:26.840 --> 0:01:29.920
<v Speaker 3>on it has some people questioning whether it's quite worth it.

0:01:29.959 --> 0:01:32.080
<v Speaker 3>So stock down three percent in the pre market.

0:01:32.319 --> 0:01:35.840
<v Speaker 1>The memory chip trade may be taking it on the

0:01:35.959 --> 0:01:39.000
<v Speaker 1>chin big time this morning. Get judging by the results

0:01:39.000 --> 0:01:41.480
<v Speaker 1>from Qualcomm DAN that's right.

0:01:41.520 --> 0:01:45.560
<v Speaker 3>So Qualcomm came out after the bell last night that share.

0:01:45.720 --> 0:01:48.880
<v Speaker 3>Those shares are down twelve percent. Top and bottom line

0:01:49.000 --> 0:01:52.840
<v Speaker 3>estimates for current quarter. Both top and bottom line forecast

0:01:52.880 --> 0:01:56.000
<v Speaker 3>for current core both below estimates. That's even with fiscal

0:01:56.360 --> 0:02:00.800
<v Speaker 3>first quarter earnings beating. Qualcomm is a smartphone processor maker,

0:02:01.040 --> 0:02:03.800
<v Speaker 3>and it says, well, there's high demand. While there's demand

0:02:03.840 --> 0:02:06.440
<v Speaker 3>for high end phones, some customers will be making fewer

0:02:06.440 --> 0:02:09.760
<v Speaker 3>handsets because memory chip shortages and costs, especially at the

0:02:09.800 --> 0:02:13.720
<v Speaker 3>low end. Qualcomm's looking to diversify towards chips for cars, PCs,

0:02:13.760 --> 0:02:17.560
<v Speaker 3>data centers outside of this space because the handsets sector

0:02:17.639 --> 0:02:21.680
<v Speaker 3>is proving very, very very cost a lot of caution

0:02:21.880 --> 0:02:23.960
<v Speaker 3>over that. So those shares down twelve percent in the

0:02:23.960 --> 0:02:24.560
<v Speaker 3>pre market.

0:02:24.919 --> 0:02:27.040
<v Speaker 1>We got earnings this morning from Sday Lotterer and I'm

0:02:27.040 --> 0:02:28.520
<v Speaker 1>going to say it, Dan, They're not pretty.

0:02:29.480 --> 0:02:32.160
<v Speaker 3>They are not I guess, I guess all my makeup

0:02:32.200 --> 0:02:36.200
<v Speaker 3>spending for radio isn't feeding through. It did raise full

0:02:36.280 --> 0:02:40.080
<v Speaker 3>your sales and earnings guidance, but the market was expecting it.

0:02:40.360 --> 0:02:43.400
<v Speaker 3>Shares are now down almost eleven percent in pre market.

0:02:43.639 --> 0:02:46.960
<v Speaker 3>Company narrowed organic net sales growth, now seeing one to

0:02:47.000 --> 0:02:49.440
<v Speaker 3>three percent for the year, but Wall Street was already

0:02:49.440 --> 0:02:51.640
<v Speaker 3>at two point nine percent, so it was at the

0:02:51.639 --> 0:02:55.520
<v Speaker 3>top end of what Sday latter provided. Again, EPs range

0:02:55.520 --> 0:02:58.600
<v Speaker 3>was up fifteen cents, but Wallstreet had already moved on that.

0:02:59.000 --> 0:03:03.320
<v Speaker 3>Fiscal second quarter earnings and sales did top did top estimates.

0:03:03.400 --> 0:03:06.400
<v Speaker 3>Flat organic growth in America though CEO is looking for

0:03:06.440 --> 0:03:08.919
<v Speaker 3>a turnaround, but right now shares not seeing a turnaround

0:03:08.919 --> 0:03:09.640
<v Speaker 3>in the pre market.

0:03:09.720 --> 0:03:12.160
<v Speaker 1>And just quickly, Dan, we got some news from Spotify

0:03:12.240 --> 0:03:15.000
<v Speaker 1>this morning that some listeners might find a little interesting.

0:03:15.639 --> 0:03:18.680
<v Speaker 3>That's right, so Spotify is going to be off airing

0:03:18.800 --> 0:03:22.120
<v Speaker 3>premium subscribers a chance by paper books. I have this,

0:03:22.200 --> 0:03:25.240
<v Speaker 3>I'm scratching my heads. Markets are taking a two percent

0:03:25.320 --> 0:03:28.520
<v Speaker 3>move up on that news. Spotify, according to the Wall

0:03:28.520 --> 0:03:32.880
<v Speaker 3>Street Journal, is partnering with bookshop dot org to provide

0:03:32.960 --> 0:03:36.400
<v Speaker 3>paperback books. And I mean, I'm a Spotify premium user.

0:03:36.520 --> 0:03:38.520
<v Speaker 3>I'm not sure if I'm going to buy that because

0:03:38.520 --> 0:03:40.800
<v Speaker 3>I'll bump into things if I'm trying to commute and

0:03:41.120 --> 0:03:42.880
<v Speaker 3>be on the book and read a book at the

0:03:42.920 --> 0:03:43.320
<v Speaker 3>same time.

0:03:44.480 --> 0:03:48.520
<v Speaker 2>This stock Movers report from Bloomberg Radio. Check back with

0:03:48.600 --> 0:03:51.160
<v Speaker 2>us throughout the day for the latest roundup of companies

0:03:51.240 --> 0:03:54.320
<v Speaker 2>making news on Wall Street and for the latest market

0:03:54.360 --> 0:03:58.800
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:03:58.920 --> 0:04:02.280
<v Speaker 2>Bloomberg dot com, and on Apple CarPlay and Android Auto

0:04:02.360 --> 0:04:03.920
<v Speaker 2>with the Bloomberg Business app.