WEBVTT - TSMC and Salesforce Higher; Hewlett Packard and United Lower

0:00:02.520 --> 0:00:09.960
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The Stock Movers Report,

0:00:10.240 --> 0:00:13.440
<v Speaker 1>your roundup of companies making moves in the stock market,

0:00:13.680 --> 0:00:15.840
<v Speaker 1>harnessing the power of Bloomberg Data.

0:00:16.440 --> 0:00:18.360
<v Speaker 2>Let's take a look at some of the stocks on

0:00:18.640 --> 0:00:21.720
<v Speaker 2>the move today. AM Paul Sweeney alongside John Tucker. We're

0:00:21.760 --> 0:00:24.600
<v Speaker 2>joined by Bomberg's Least Mitaeleish. What are you looking at all? Right?

0:00:24.600 --> 0:00:27.960
<v Speaker 3>We want to start with Taiwan Semiconductor Manufacturing ticker TSM.

0:00:28.560 --> 0:00:30.960
<v Speaker 3>Their shares been up as much as two percent. So

0:00:31.080 --> 0:00:33.720
<v Speaker 3>here's the thing, right, It posted better than expected thirty

0:00:33.800 --> 0:00:36.640
<v Speaker 3>nine percent jump in profit, hiked its projection for twenty

0:00:36.680 --> 0:00:39.360
<v Speaker 3>twenty five revenue growth for the second time this year,

0:00:40.000 --> 0:00:44.040
<v Speaker 3>raise its forecast for capital spending, which is key. So

0:00:44.080 --> 0:00:47.920
<v Speaker 3>what it's basically doing it it's reinforcing hopes on how

0:00:47.960 --> 0:00:50.600
<v Speaker 3>long the global AI boom spending is going to stick around.

0:00:51.080 --> 0:00:53.080
<v Speaker 3>It's also showing a little bit more approof how chip

0:00:53.120 --> 0:00:55.920
<v Speaker 3>makers stand to be among the biggest winners from that boom.

0:00:56.080 --> 0:00:58.320
<v Speaker 3>And that boom and we've talked about it expected to

0:00:58.320 --> 0:01:01.920
<v Speaker 3>push past one trillion dollars in coming years. That's a

0:01:02.000 --> 0:01:05.920
<v Speaker 3>lot of money. Now when we look at chip equipment stock.

0:01:06.040 --> 0:01:09.200
<v Speaker 3>So for example, you look at ASML, which gets seventeen

0:01:09.200 --> 0:01:12.800
<v Speaker 3>percent of its revenue from TSMC, their ADRs are up

0:01:12.840 --> 0:01:15.480
<v Speaker 3>nearly two percent. And then in the US, if you

0:01:15.520 --> 0:01:20.800
<v Speaker 3>watch TSMC suppliers for example like Applied Materials KLA LAMB Research,

0:01:20.880 --> 0:01:23.960
<v Speaker 3>their shares are all up about one percent. So some

0:01:24.000 --> 0:01:27.520
<v Speaker 3>good news for Taiwan semiconductor manufacturing. Where the bad news

0:01:27.600 --> 0:01:31.480
<v Speaker 3>is that is computer hardware storage company Hewlett Packard Enterprises

0:01:31.560 --> 0:01:34.800
<v Speaker 3>ticker HPE. Their shares have been down as much as

0:01:34.920 --> 0:01:37.800
<v Speaker 3>nine percent. What they did, they issued a full year

0:01:37.880 --> 0:01:41.679
<v Speaker 3>forecast for profiting cash flow fell short of estimates. And

0:01:41.760 --> 0:01:44.480
<v Speaker 3>you know HPE, right, it's one of the largest makers

0:01:44.480 --> 0:01:47.520
<v Speaker 3>of computing equipment, so it's betting on networking as this

0:01:47.640 --> 0:01:50.840
<v Speaker 3>major piece of its future expansion. How it wants to expand.

0:01:50.960 --> 0:01:54.240
<v Speaker 3>If you remember back in July, it said that it

0:01:54.280 --> 0:01:56.920
<v Speaker 3>was going to buy Juniper Networks for about thirteen billion dollars.

0:01:57.640 --> 0:02:01.160
<v Speaker 3>But HP they have tighter margins to building these servers

0:02:01.160 --> 0:02:04.000
<v Speaker 3>with those expensive AI chips, and they have made the

0:02:04.040 --> 0:02:06.960
<v Speaker 3>machines a little bit less profitable, and that's the problem.

0:02:07.040 --> 0:02:10.400
<v Speaker 2>The stock was up, you know, seventeen percent your date,

0:02:10.480 --> 0:02:12.119
<v Speaker 2>So it's going to it's giving back a good chunk

0:02:12.160 --> 0:02:12.600
<v Speaker 2>of that today.

0:02:12.600 --> 0:02:14.880
<v Speaker 4>Give me that his When was it that they split

0:02:14.919 --> 0:02:18.919
<v Speaker 4>apart HP and HGP twenty four, twenty fifteen, right.

0:02:19.000 --> 0:02:22.160
<v Speaker 2>Yeah, something like that. Yeah, and HPE and HPQ are

0:02:22.200 --> 0:02:22.919
<v Speaker 2>the two ones.

0:02:23.280 --> 0:02:23.920
<v Speaker 4>But that's just I.

0:02:23.919 --> 0:02:27.919
<v Speaker 2>Mean, hp is one of the founding members of Silicon Valley.

0:02:27.919 --> 0:02:28.760
<v Speaker 4>That's how I think about it.

0:02:28.800 --> 0:02:30.840
<v Speaker 2>Oracle, Intel, those kinds of names.

0:02:30.919 --> 0:02:33.800
<v Speaker 3>I always with those tickers, make them like HPQ.

0:02:33.760 --> 0:02:35.600
<v Speaker 2>I need too on a rock? What do I need

0:02:35.639 --> 0:02:36.000
<v Speaker 2>to do here?

0:02:36.360 --> 0:02:37.200
<v Speaker 4>Exactly?

0:02:37.960 --> 0:02:40.000
<v Speaker 3>H and we'll stick with There were loads of software

0:02:40.040 --> 0:02:44.520
<v Speaker 3>company Salesforce. This one is ticker a CRM. Their shares

0:02:44.520 --> 0:02:48.240
<v Speaker 3>have been up more than about five percent forecast revenue growth.

0:02:48.280 --> 0:02:50.440
<v Speaker 3>It's going to accelerate to double digits in the coming year.

0:02:50.520 --> 0:02:52.960
<v Speaker 3>So that was a big news and that kind of

0:02:52.960 --> 0:02:55.560
<v Speaker 3>ease investor concerns about the pace of the business. What

0:02:55.720 --> 0:02:58.239
<v Speaker 3>investors they were worried about is that customers were spending

0:02:58.240 --> 0:03:01.760
<v Speaker 3>their budgets on AI tools from startup companies instead of

0:03:01.840 --> 0:03:05.000
<v Speaker 3>like traditional vendors like Salesforce. So this kind of reassured

0:03:05.040 --> 0:03:08.320
<v Speaker 3>that for them. They expect sixty billion dollars in annual

0:03:08.360 --> 0:03:11.920
<v Speaker 3>revenue by fiscal year ending in January twenty thirty. That

0:03:11.960 --> 0:03:15.560
<v Speaker 3>excludes any contribution from the planned exquisition they have from Informatica.

0:03:16.200 --> 0:03:17.680
<v Speaker 3>But the company is also going to buy back an

0:03:17.680 --> 0:03:20.760
<v Speaker 3>additional seven billion of shares in the next six months.

0:03:20.840 --> 0:03:23.600
<v Speaker 3>So it's really the good news that the company needed.

0:03:23.720 --> 0:03:26.280
<v Speaker 3>I mean, the stock has taken a hit drop about

0:03:26.280 --> 0:03:28.480
<v Speaker 3>twenty nine percent through Wednesday's closing.

0:03:28.200 --> 0:03:32.520
<v Speaker 2>And it had been such a classic winner, classic software story,

0:03:32.560 --> 0:03:34.359
<v Speaker 2>It's just always going to work. But then people said

0:03:34.360 --> 0:03:37.080
<v Speaker 2>AI is AI going to replace a lot of the

0:03:37.960 --> 0:03:41.480
<v Speaker 2>functionality of some of the salesforce software? That was I

0:03:41.480 --> 0:03:43.280
<v Speaker 2>think the concern I heard from some of the tech books.

0:03:43.360 --> 0:03:46.320
<v Speaker 4>Gee, I sense a common theme running through all these

0:03:46.360 --> 0:03:48.280
<v Speaker 4>stocks this morning, Lisa.

0:03:48.240 --> 0:03:50.920
<v Speaker 3>Well except for the last one, United Airlines. There you go,

0:03:51.000 --> 0:03:51.920
<v Speaker 3>I'll sneak that one in there.

0:03:52.000 --> 0:03:54.440
<v Speaker 4>You just heard from the CEO earlier, Kirby.

0:03:54.560 --> 0:03:57.120
<v Speaker 3>Yes, Remember he was just talking about saying that they're

0:03:57.160 --> 0:04:00.320
<v Speaker 3>getting more corporate clients. He was saying International tray is

0:04:00.360 --> 0:04:03.160
<v Speaker 3>coming back when he was telling Lisa Bromwitz. So it's

0:04:03.200 --> 0:04:06.080
<v Speaker 3>ticker u al. But the problem is that their shares

0:04:06.120 --> 0:04:08.520
<v Speaker 3>have kind of taken a turn. They've slipped down more

0:04:08.560 --> 0:04:11.800
<v Speaker 3>than one percent because analysts a Bloomberg Intelligence are saying

0:04:11.840 --> 0:04:15.720
<v Speaker 3>the airlines results, they're showing signs of saturation even in

0:04:15.760 --> 0:04:18.480
<v Speaker 3>the premium seats that they say more people are starting

0:04:18.520 --> 0:04:22.080
<v Speaker 3>to buy. So that's the difference there. But yeah, they've

0:04:22.120 --> 0:04:25.000
<v Speaker 3>been trying to like focus on that that more expensive

0:04:25.080 --> 0:04:26.000
<v Speaker 3>travel experience.

0:04:26.120 --> 0:04:27.880
<v Speaker 2>I just booked the rub I just booked the rubis

0:04:27.920 --> 0:04:31.279
<v Speaker 2>so pretty January. No, No, we did the like you

0:04:31.320 --> 0:04:34.920
<v Speaker 2>know that the mets A, METSA, the middle the premiumconist.

0:04:36.120 --> 0:04:40.160
<v Speaker 1>The Stock Movers Report from Bloomberg Radio. Check back with

0:04:40.240 --> 0:04:42.839
<v Speaker 1>us throughout the day for the latest roundup of companies

0:04:42.880 --> 0:04:46.000
<v Speaker 1>making news on Wall Street and for the latest market

0:04:46.000 --> 0:04:50.480
<v Speaker 1>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:50.560 --> 0:04:54.080
<v Speaker 1>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:54.160 --> 0:04:55.640
<v Speaker 1>the Bloomberg Business app.