1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,880 --> 00:00:13,320 Speaker 2: This is the closing bell on this stock mover's report. 3 00:00:13,560 --> 00:00:16,520 Speaker 2: The company's making moves at the close of US trading 4 00:00:16,760 --> 00:00:21,600 Speaker 2: with Carol Masser, Tim Stenobeck, Romain, Bostic and Scarlet. 5 00:00:21,079 --> 00:00:23,120 Speaker 3: Food S and P five hundred. 6 00:00:23,160 --> 00:00:25,360 Speaker 4: Scarlett fairly broad based in terms of some of the 7 00:00:25,360 --> 00:00:26,439 Speaker 4: buying that we saw today. 8 00:00:26,920 --> 00:00:28,360 Speaker 3: Fannie three hundred and forty three. 9 00:00:28,280 --> 00:00:30,520 Speaker 4: Names to the upside in the S and P, and 10 00:00:30,560 --> 00:00:32,519 Speaker 4: you've got one hundred and sixty to the downside. 11 00:00:32,680 --> 00:00:34,120 Speaker 1: If you look at the map of the S and 12 00:00:34,120 --> 00:00:36,000 Speaker 1: B five hundred, you would think it was just all 13 00:00:36,200 --> 00:00:38,280 Speaker 1: green today, it's not. You can see there's a couple 14 00:00:38,360 --> 00:00:40,520 Speaker 1: of sectors that are in the red, but it's mostly 15 00:00:40,920 --> 00:00:44,480 Speaker 1: you know, the likes of healthcare on earnings, industrials also 16 00:00:44,479 --> 00:00:47,480 Speaker 1: doing extraordinarily well, and energy having a better day, having 17 00:00:47,520 --> 00:00:48,960 Speaker 1: had a tough beginning to the week. 18 00:00:49,080 --> 00:00:51,760 Speaker 4: All right, guys, as we wait for those earnings to 19 00:00:51,800 --> 00:00:55,240 Speaker 4: cross Lampwebston one of the outperformers in today's session, up 20 00:00:55,280 --> 00:00:57,040 Speaker 4: about sixteen percent. You know what they do, They make 21 00:00:57,080 --> 00:01:01,200 Speaker 4: French fries and investors certainly eating up shares today. 22 00:01:01,240 --> 00:01:03,440 Speaker 3: It is one of the top gainers it's. 23 00:01:03,280 --> 00:01:05,520 Speaker 4: Actually the top gainer in the S and P five hundred, 24 00:01:05,840 --> 00:01:07,600 Speaker 4: surging the most in more than four years. After it 25 00:01:07,640 --> 00:01:10,399 Speaker 4: said it would cut four percent of its global workforce 26 00:01:10,440 --> 00:01:13,959 Speaker 4: part of a new cost saving program. And so this 27 00:01:14,040 --> 00:01:17,000 Speaker 4: company's been going through a few different changes and so 28 00:01:17,080 --> 00:01:20,000 Speaker 4: on and so forth. So we are seeing certainly investors 29 00:01:20,040 --> 00:01:23,399 Speaker 4: liking this name, and we got some earnings we do. 30 00:01:23,600 --> 00:01:25,440 Speaker 5: I'm going to just bring up CSX right here as 31 00:01:25,480 --> 00:01:27,760 Speaker 5: we await the big one, which is Alphabet. This is 32 00:01:27,760 --> 00:01:30,520 Speaker 5: the railroad company coming in with second quarter revenue that 33 00:01:30,560 --> 00:01:33,800 Speaker 5: meets analyst estimates three point five seven billion dollars, just 34 00:01:33,840 --> 00:01:36,880 Speaker 5: slightly below the anticipated three point five to eight billion. 35 00:01:37,080 --> 00:01:39,200 Speaker 5: As for the earnings per share forty four cents, which 36 00:01:39,240 --> 00:01:42,360 Speaker 5: is lower than the forty nine cents last year. Operating 37 00:01:42,400 --> 00:01:45,280 Speaker 5: income for the quarter one point two eight billion dollars. Analysts, 38 00:01:45,280 --> 00:01:48,200 Speaker 5: we're looking for one point two two billion dollars. And 39 00:01:48,240 --> 00:01:50,360 Speaker 5: you can see they're the shares a little change at 40 00:01:50,360 --> 00:01:53,440 Speaker 5: the moment, kind of bouncing around, was a bit higher. 41 00:01:53,440 --> 00:01:54,520 Speaker 3: We'll see how it all shakes out. 42 00:01:54,640 --> 00:01:58,000 Speaker 6: Tim shares a team mobile shot higher for a second, 43 00:01:58,120 --> 00:02:00,760 Speaker 6: then when lower. Now they're higher again, up two point 44 00:02:01,000 --> 00:02:03,840 Speaker 6: three percent. In the after hours. The company sees twenty 45 00:02:03,880 --> 00:02:06,760 Speaker 6: twenty five post paid net ADS of six point one 46 00:02:06,800 --> 00:02:09,359 Speaker 6: million to six point four million. That beats estimates of 47 00:02:09,720 --> 00:02:13,560 Speaker 6: five point nine four million. The company also sees fiscal 48 00:02:13,639 --> 00:02:16,959 Speaker 6: year core adjusted EBADA of three thirty three point three 49 00:02:17,000 --> 00:02:20,600 Speaker 6: billion dollars to thirty three point seven billion dollars. Estimates 50 00:02:20,639 --> 00:02:23,320 Speaker 6: were for thirty three point five billion. So right there, 51 00:02:23,360 --> 00:02:25,360 Speaker 6: and now we're seeing alphabet earnings crossing. 52 00:02:25,440 --> 00:02:27,600 Speaker 5: We are, and let's start you off with a second 53 00:02:27,680 --> 00:02:30,799 Speaker 5: quarter revenue of ninety six point three four to three 54 00:02:30,800 --> 00:02:33,240 Speaker 5: billion dollars, they should say, better than expected. Ninety three 55 00:02:33,240 --> 00:02:35,519 Speaker 5: point ninety seven billion was what analysts were looking for. 56 00:02:35,720 --> 00:02:38,080 Speaker 5: When you back out the traffic acquisition cost, that is, 57 00:02:38,120 --> 00:02:41,880 Speaker 5: revenue handed over to partners eighty one point seven two 58 00:02:41,919 --> 00:02:44,960 Speaker 5: billion dollars, again higher than the anticipated seventy nine point 59 00:02:45,000 --> 00:02:49,000 Speaker 5: six billion dollars. As for the individual business cloud revenue 60 00:02:49,000 --> 00:02:51,360 Speaker 5: there are thirteen point six two billion dollars, higher than 61 00:02:51,400 --> 00:02:55,360 Speaker 5: the anticipated thirteen point one four billion dollars. YouTube ADS 62 00:02:55,400 --> 00:02:58,639 Speaker 5: revenue nine point eight billion, again better than the anticipated 63 00:02:58,720 --> 00:03:02,200 Speaker 5: nine point five six billion, as well AD revenue, which 64 00:03:02,240 --> 00:03:04,840 Speaker 5: is of course the biggest part of the business seventy 65 00:03:04,880 --> 00:03:07,480 Speaker 5: one point three four billion dollars. Analysts, we're looking for 66 00:03:07,560 --> 00:03:11,120 Speaker 5: sixty nine point seventy one billion, as well as for 67 00:03:11,240 --> 00:03:13,600 Speaker 5: search and other revenue fifty four point one to nine 68 00:03:13,600 --> 00:03:17,720 Speaker 5: billion dollars analysts, we're anticipating just under fifty three million dollars. 69 00:03:17,800 --> 00:03:21,120 Speaker 5: You're looking at shares little changed to slightly higher in 70 00:03:21,240 --> 00:03:24,120 Speaker 5: the after hours. Capex is another big one, twenty two 71 00:03:24,200 --> 00:03:26,680 Speaker 5: point four to five billion dollars analysts, we're looking for 72 00:03:26,760 --> 00:03:30,600 Speaker 5: eighteen point two four billion dollars. And alphabet is increasing 73 00:03:30,600 --> 00:03:33,720 Speaker 5: its investment in capex for this full year, Carol and 74 00:03:33,760 --> 00:03:36,280 Speaker 5: Tim to about eighty five billion dollars. And again, you 75 00:03:36,320 --> 00:03:38,240 Speaker 5: wonder how much this sets the tone, sets the bar 76 00:03:38,360 --> 00:03:41,640 Speaker 5: for how much the other mag seven names increase their capex. 77 00:03:41,840 --> 00:03:44,480 Speaker 4: Yeah, exactly, and continue to watch the stock bounce around 78 00:03:44,600 --> 00:03:47,200 Speaker 4: now up about nine tenths of a percent. Again, some 79 00:03:47,240 --> 00:03:49,560 Speaker 4: of the big headlines and Scarlett you really, you know, 80 00:03:49,640 --> 00:03:52,800 Speaker 4: draw our attention to them company in terms of CAPEX spending, 81 00:03:52,960 --> 00:03:56,840 Speaker 4: especially amid the AI build out, sees fiscal year capex 82 00:03:56,880 --> 00:03:58,200 Speaker 4: about eighty five billion dollars. 83 00:03:58,200 --> 00:04:00,080 Speaker 3: It's ten billion dollars. 84 00:04:00,000 --> 00:04:02,240 Speaker 4: And its previous estimate when it had seen about seventy five. 85 00:04:02,280 --> 00:04:03,920 Speaker 4: The estimate on the street was a little bit over 86 00:04:03,960 --> 00:04:07,160 Speaker 4: seventy three billion. And again second quarter Google Search and 87 00:04:07,240 --> 00:04:10,320 Speaker 4: other revenue, that too is a beat fifty almost fifty 88 00:04:10,320 --> 00:04:12,480 Speaker 4: four point two billion, and the street was looking for 89 00:04:12,560 --> 00:04:14,360 Speaker 4: fifty two point eight. But right now we are seeing 90 00:04:14,360 --> 00:04:17,400 Speaker 4: the stock down about almost one percentage point here. 91 00:04:17,560 --> 00:04:21,480 Speaker 1: Yeah, Essentially, Alphabet is saying that AI is positively impacting. 92 00:04:21,000 --> 00:04:22,920 Speaker 3: Every part of its business. 93 00:04:22,960 --> 00:04:25,280 Speaker 1: And earlier I was speaking with the Golden Saxon List, 94 00:04:25,320 --> 00:04:28,120 Speaker 1: and you know, he made the point that everything looks 95 00:04:28,200 --> 00:04:31,080 Speaker 1: rosy for many parts of its business, from YouTube to 96 00:04:31,480 --> 00:04:34,240 Speaker 1: the cloud revenue. And that's what we're seeing effectively play 97 00:04:34,279 --> 00:04:36,440 Speaker 1: out in these results with almost every part of the 98 00:04:36,480 --> 00:04:40,880 Speaker 1: business beating estimates that kapex, though potentially weighing on the stock. 99 00:04:41,120 --> 00:04:45,359 Speaker 6: Alphabet CEO Sunderpitchai saying calling this a standout quarter robust 100 00:04:45,360 --> 00:04:48,880 Speaker 6: growth across the company. Search delivered double digit revenue growth. 101 00:04:49,279 --> 00:04:52,040 Speaker 6: He said, our new features like aioverviews and AI mode 102 00:04:52,040 --> 00:04:55,039 Speaker 6: are performing well. We continue to see strong performance in 103 00:04:55,120 --> 00:04:58,559 Speaker 6: YouTube as well as our subscriptions offering and clouded strong 104 00:04:58,600 --> 00:05:02,520 Speaker 6: growth in revenues, backlog and profitability. Its annual revenue run 105 00:05:02,600 --> 00:05:05,520 Speaker 6: rate is now more than fifty billion dollars center Pitchai 106 00:05:05,640 --> 00:05:08,680 Speaker 6: continuing saying, with this strong and growing demand for our 107 00:05:08,720 --> 00:05:11,720 Speaker 6: cloud products and services, we are increasing our investment in 108 00:05:11,760 --> 00:05:14,599 Speaker 6: capex in twenty twenty five to approximately eighty five billion 109 00:05:14,640 --> 00:05:17,279 Speaker 6: dollars and excited about the opportunity ahead. 110 00:05:17,320 --> 00:05:19,200 Speaker 4: All Right, We're going to keep keeping an eye on 111 00:05:19,800 --> 00:05:22,200 Speaker 4: shares of Alphabet down about two percent here in the 112 00:05:22,240 --> 00:05:26,960 Speaker 4: after hours. Quick check on Mattel also crossing the Bloomberg terminal, 113 00:05:26,960 --> 00:05:29,960 Speaker 4: and you're looking at this company resuming its twenty twenty 114 00:05:30,000 --> 00:05:33,000 Speaker 4: five guidance, sees fiscally year just ADPs of a buck 115 00:05:33,040 --> 00:05:36,840 Speaker 4: fifty four to a dollar sixty six a share, seeing 116 00:05:36,880 --> 00:05:39,680 Speaker 4: fiscal year adjusted gross margin of fifty percent. The street 117 00:05:39,720 --> 00:05:42,320 Speaker 4: was looking for fifty point three, so almost in line there, 118 00:05:42,640 --> 00:05:44,920 Speaker 4: and the company in terms of the second quarter adjusted 119 00:05:44,960 --> 00:05:48,599 Speaker 4: EPs of nineteen six nineteen cents a share, three pennies 120 00:05:48,600 --> 00:05:51,160 Speaker 4: better than what the street was expecting, their adjusted gross 121 00:05:51,200 --> 00:05:54,599 Speaker 4: margin coming in better fifty one point two percent the 122 00:05:54,720 --> 00:05:57,200 Speaker 4: estimate was forty nine point two percent. And then second 123 00:05:57,279 --> 00:05:59,560 Speaker 4: quarter net sales too, that's coming in light one point 124 00:05:59,680 --> 00:06:02,120 Speaker 4: zero two billion. Sheet was looking for one point zero 125 00:06:02,200 --> 00:06:04,760 Speaker 4: six billion Street doesn't like it, investors, setting that stock 126 00:06:04,800 --> 00:06:05,480 Speaker 4: down about. 127 00:06:05,240 --> 00:06:06,280 Speaker 3: Five point six percent. 128 00:06:06,640 --> 00:06:09,320 Speaker 6: Also, we should note a correction to one of the headlines, 129 00:06:09,360 --> 00:06:14,599 Speaker 6: Alphabet's Cloud annual revenue run rate over fifty billion dollars. Vannie, 130 00:06:14,600 --> 00:06:16,479 Speaker 6: I know you got your eye on some other numbers 131 00:06:16,520 --> 00:06:16,880 Speaker 6: that are crest. 132 00:06:16,920 --> 00:06:17,440 Speaker 3: Yeah, let's rag. 133 00:06:17,480 --> 00:06:20,680 Speaker 1: It sounds beating as well on all metrics. Really, Tim, 134 00:06:20,720 --> 00:06:23,520 Speaker 1: and it's interesting to see that net revenue coming in 135 00:06:23,600 --> 00:06:25,880 Speaker 1: at three point one eight billion dollars when the estimate 136 00:06:25,920 --> 00:06:27,560 Speaker 1: was for two point eight three billion dollars. 137 00:06:27,600 --> 00:06:29,120 Speaker 3: That stock soaring six percent. 138 00:06:29,160 --> 00:06:32,400 Speaker 1: Now, the adjusted earnings per share in the second quarter 139 00:06:32,480 --> 00:06:35,760 Speaker 1: seventy nine cents versus the estimate of fifty three cents, 140 00:06:35,920 --> 00:06:39,279 Speaker 1: and net revenue for Macaw was one point eight billion 141 00:06:39,320 --> 00:06:41,440 Speaker 1: the estimate there was one point seven to seven billion. 142 00:06:41,480 --> 00:06:44,440 Speaker 1: So really, you know, Kurt ching for Las Vegas Sands 143 00:06:44,480 --> 00:06:45,279 Speaker 1: on whole metrics. 144 00:06:45,440 --> 00:06:48,200 Speaker 5: Yeah, Macaw really a star performer there for that company. 145 00:06:48,320 --> 00:06:49,680 Speaker 5: I just want to go back to Alphabet for a 146 00:06:49,760 --> 00:06:52,600 Speaker 5: second here, because heading into this earnings report, the stock 147 00:06:52,720 --> 00:06:55,080 Speaker 5: was on a ten day winning streak. Up until today, 148 00:06:55,120 --> 00:06:57,040 Speaker 5: it had been a laggard compared with the other mag 149 00:06:57,080 --> 00:07:00,600 Speaker 5: seven names. Overconcerned about how jen Ai would into its 150 00:07:00,640 --> 00:07:01,240 Speaker 5: search business. 151 00:07:01,279 --> 00:07:02,400 Speaker 3: It's bread and butter business. 152 00:07:02,760 --> 00:07:05,040 Speaker 5: But then people were saying, you know, actually the economy 153 00:07:05,080 --> 00:07:06,960 Speaker 5: is doing fine, so the ad business will hold a 154 00:07:07,040 --> 00:07:09,760 Speaker 5: fine and Google has alphabet has its work cut out 155 00:07:09,800 --> 00:07:13,240 Speaker 5: for it in terms of reassuring investors over that search 156 00:07:13,280 --> 00:07:16,240 Speaker 5: business over the advertising business. Right now, you are seeing 157 00:07:16,280 --> 00:07:19,240 Speaker 5: the stocka move decidedly lower, at least until the earnings 158 00:07:19,240 --> 00:07:22,000 Speaker 5: call begins, down about two and a half percent, perhaps 159 00:07:22,040 --> 00:07:24,560 Speaker 5: Carol going back to that idea that the cap expend 160 00:07:24,760 --> 00:07:26,720 Speaker 5: is higher than anticipated for the past quarter. 161 00:07:26,840 --> 00:07:28,800 Speaker 4: Yeah, I'm going to look for some color and seeing 162 00:07:28,800 --> 00:07:30,520 Speaker 4: what they have to say about this, because one of 163 00:07:30,560 --> 00:07:32,480 Speaker 4: the things that we talked about earlier with our mandeep 164 00:07:32,480 --> 00:07:35,440 Speaker 4: seeing Bloomberg Intelligence is a couple of things. I mean, 165 00:07:35,480 --> 00:07:39,120 Speaker 4: this is a company that has such a massive platform 166 00:07:39,320 --> 00:07:41,960 Speaker 4: and that that is giving them so much data and 167 00:07:42,000 --> 00:07:46,120 Speaker 4: information in terms of building out their large language models 168 00:07:46,120 --> 00:07:49,120 Speaker 4: and token customization, which is something we talk about increasingly. 169 00:07:49,520 --> 00:07:51,400 Speaker 4: I'm also interested in what this is doing to the 170 00:07:51,440 --> 00:07:54,560 Speaker 4: tech trade overall. Just looking at the Nasdaqi mini futures 171 00:07:54,600 --> 00:07:57,920 Speaker 4: in the aftermarket up about half a percent, so it's 172 00:07:57,920 --> 00:08:01,080 Speaker 4: not like it's pulling down the trade at least early on. 173 00:08:01,280 --> 00:08:05,480 Speaker 6: YouTube ads revenue nine point eight billion dollars. That's a 174 00:08:05,520 --> 00:08:08,160 Speaker 6: thirteen percent increase year over year. The estimate was for 175 00:08:08,400 --> 00:08:12,760 Speaker 6: nine point six billion dollars. Don't sleep on YouTube, No 176 00:08:12,920 --> 00:08:15,880 Speaker 6: sleep on YouTube. Oh I mean this is like, this 177 00:08:15,920 --> 00:08:17,360 Speaker 6: is the competitor to Netflix. 178 00:08:17,560 --> 00:08:19,960 Speaker 4: All right, Yeah, so we're watching that. Yeah, no doubt 179 00:08:19,960 --> 00:08:22,320 Speaker 4: about it. Google down, alphabet down about two and a 180 00:08:22,320 --> 00:08:25,080 Speaker 4: half percent. IBM just crossing, folks. Let's throw that out 181 00:08:25,120 --> 00:08:27,640 Speaker 4: for you. Second quarter revenue, it's a beat sixteen point 182 00:08:27,720 --> 00:08:29,840 Speaker 4: nine to eight billion. The estimate on the street is 183 00:08:29,880 --> 00:08:33,400 Speaker 4: sixteen point five nine billion. And you're looking at second 184 00:08:33,440 --> 00:08:36,640 Speaker 4: quarter free cash flow that's coming in better than expected 185 00:08:36,679 --> 00:08:39,120 Speaker 4: two point eighty five billion. The street estimate was for 186 00:08:39,480 --> 00:08:44,480 Speaker 4: two point seventy seven billion dollars. So yeah, do we 187 00:08:44,480 --> 00:08:47,440 Speaker 4: have this stock trade. Let's just pull it up here 188 00:08:47,600 --> 00:08:50,800 Speaker 4: on my Bloomberg and it is data about two point 189 00:08:50,800 --> 00:08:51,960 Speaker 4: seven percent here, Scarlett. 190 00:08:52,040 --> 00:08:54,880 Speaker 5: Yeah, the second quarter software revenue missing analyst estimate is 191 00:08:54,960 --> 00:08:58,200 Speaker 5: just under seven point four billion, and as well, the 192 00:08:58,240 --> 00:09:00,560 Speaker 5: consulting revenue of five point three one billion is slightly 193 00:09:00,600 --> 00:09:03,240 Speaker 5: higher than anticipated. But the headline here that IBM is 194 00:09:03,360 --> 00:09:05,560 Speaker 5: really trying to push is that the generative AI Book 195 00:09:05,600 --> 00:09:08,000 Speaker 5: of Business stands at over seven and a half billion dollars, 196 00:09:08,200 --> 00:09:10,960 Speaker 5: yet another example of a legacy tech company trying to 197 00:09:11,040 --> 00:09:14,800 Speaker 5: prove that it is making the transition to this AI generation. 198 00:09:15,960 --> 00:09:20,000 Speaker 2: The Stock Movers Report from Bloomberg Radio. Check back with 199 00:09:20,080 --> 00:09:22,640 Speaker 2: us throughout the day for the latest roundup of companies 200 00:09:22,720 --> 00:09:25,800 Speaker 2: making news on Wall Street and for the latest market 201 00:09:25,840 --> 00:09:30,320 Speaker 2: moving headlines. 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