1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market. Harnessing the power of Bloomberg Data. 4 00:00:16,760 --> 00:00:18,880 Speaker 1: Let's take a look at some stocks on the move today. 5 00:00:18,920 --> 00:00:22,200 Speaker 1: I'm Nathan Hager, joined by Bloomberg's Dan Curtis on a 6 00:00:22,200 --> 00:00:25,840 Speaker 1: mostly down morning for stocks broadly. This morning, we get 7 00:00:25,840 --> 00:00:31,080 Speaker 1: a couple of names moving lower on earnings, including Applied Digital. 8 00:00:31,120 --> 00:00:35,280 Speaker 3: Good morning, Good morning, Nathan, Data center operator. Applied Digital 9 00:00:35,360 --> 00:00:38,040 Speaker 3: is down over four percent in the pre market ticker 10 00:00:38,159 --> 00:00:42,360 Speaker 3: APLD as it after it reported third quarter results with 11 00:00:42,440 --> 00:00:45,840 Speaker 3: gross margins missing estimates. The company took in one hundred 12 00:00:45,880 --> 00:00:48,840 Speaker 3: and twenty seven million dollars for the period, fifty million 13 00:00:48,880 --> 00:00:51,919 Speaker 3: dollars more than estimates, but it's paying more as it grows. 14 00:00:52,200 --> 00:00:54,880 Speaker 3: Nearly one hundred and forty million dollars were spent in 15 00:00:55,000 --> 00:00:58,680 Speaker 3: operating expenses. A large portion of that was thirty nine 16 00:00:58,680 --> 00:01:02,480 Speaker 3: billion dollars in stock based compensation alone. That was off 17 00:01:02,520 --> 00:01:06,800 Speaker 3: of increased headcount and performance rewards. The company also saw 18 00:01:06,840 --> 00:01:10,400 Speaker 3: an overall cash outflow of over seven hundred million dollars 19 00:01:10,560 --> 00:01:14,240 Speaker 3: six times and times analysts outlook On the positive side, 20 00:01:14,280 --> 00:01:17,399 Speaker 3: adjusted earnings per share beat, and the company noted accelerating 21 00:01:17,480 --> 00:01:21,479 Speaker 3: hyperscaler demand not enough to offset the bearish move this morning. 22 00:01:21,760 --> 00:01:27,080 Speaker 1: Okay, we also heard from Constellation brands. Are people drinking Dan? 23 00:01:29,080 --> 00:01:29,399 Speaker 2: Well? 24 00:01:29,600 --> 00:01:33,520 Speaker 3: Constellations actually been holding up better, but even they are struggling. 25 00:01:33,880 --> 00:01:37,640 Speaker 3: The shares underticker STZ are down nearly one percent in 26 00:01:37,720 --> 00:01:41,119 Speaker 3: pre market as the company projected softer than expected growth 27 00:01:41,120 --> 00:01:43,959 Speaker 3: for its beer business this year. That's the company behind 28 00:01:44,000 --> 00:01:48,960 Speaker 3: Corona and Modelo especial. It sees organic beer sales somewhere 29 00:01:49,000 --> 00:01:52,480 Speaker 3: between one percent up one percent down, but Wall Street 30 00:01:52,520 --> 00:01:55,680 Speaker 3: was looking for two percent growth. That shows that Modello 31 00:01:55,760 --> 00:01:58,560 Speaker 3: and Corona are struggling to side step a broader decline, 32 00:01:58,560 --> 00:02:01,600 Speaker 3: and beer Constellation has generally been holding it more strongly. 33 00:02:01,640 --> 00:02:04,520 Speaker 3: As I mentioned, Modello passed bud Light as the top 34 00:02:04,560 --> 00:02:07,040 Speaker 3: selling beer in the US. That's according to Zarkana. So 35 00:02:07,400 --> 00:02:09,920 Speaker 3: people are still drinking a Medelo, but maybe just not 36 00:02:10,040 --> 00:02:10,919 Speaker 3: quite as much. 37 00:02:11,400 --> 00:02:15,120 Speaker 1: All right, Well, we did get some news from Amazon 38 00:02:15,200 --> 00:02:17,799 Speaker 1: this morning. In the CEO letter, what do we need 39 00:02:17,800 --> 00:02:18,040 Speaker 1: to know? 40 00:02:18,720 --> 00:02:21,720 Speaker 3: That's right? So, Andy Jasse wrote to shareholders this morning. 41 00:02:21,760 --> 00:02:24,959 Speaker 3: He highlighted the company's chip business, saying its run rate 42 00:02:25,000 --> 00:02:28,200 Speaker 3: is now over twenty billion dollars and growing at triple 43 00:02:28,240 --> 00:02:32,519 Speaker 3: percentage on an annual basis. That has shares flat this morning, 44 00:02:32,600 --> 00:02:35,160 Speaker 3: but they were down before this letter came back, so 45 00:02:35,240 --> 00:02:37,960 Speaker 3: they have paired some of those losses. He noted the 46 00:02:38,000 --> 00:02:41,000 Speaker 3: company is willing to endure short term free cash flow 47 00:02:41,000 --> 00:02:45,320 Speaker 3: headwinds for substantial long term growth and that spending is 48 00:02:45,480 --> 00:02:49,359 Speaker 3: heavy on the capex side. Two hundred billion dollars approximately 49 00:02:49,400 --> 00:02:52,440 Speaker 3: will be spent this year, and Jasse noted that that 50 00:02:52,520 --> 00:02:56,359 Speaker 3: monetization will likely happen in twenty twenty seven and twenty 51 00:02:56,440 --> 00:02:59,440 Speaker 3: twenty eight, so giving up a little bit now looking 52 00:02:59,440 --> 00:03:00,640 Speaker 3: for longer growth. 53 00:03:00,919 --> 00:03:04,720 Speaker 1: And finally, Dan, we got a headline from Tesla. Apparently 54 00:03:05,000 --> 00:03:07,400 Speaker 1: Elon Musk's company is still in the EV business. 55 00:03:08,120 --> 00:03:11,000 Speaker 3: Apparently it is. That's according to Reuter's which is reporting 56 00:03:11,000 --> 00:03:14,079 Speaker 3: that Tesla's developing a new compact suv and they were 57 00:03:14,160 --> 00:03:17,919 Speaker 3: citing people familiar. They are said to have contacted suppliers 58 00:03:17,960 --> 00:03:21,280 Speaker 3: in recent weeks to discuss details. That has shares again 59 00:03:21,360 --> 00:03:24,200 Speaker 3: about flat, but they were down before this news came out. 60 00:03:24,520 --> 00:03:27,400 Speaker 3: Sources said that the SUV would be produced in China, 61 00:03:27,520 --> 00:03:30,760 Speaker 3: and this follows earlier this year, where Tesla discontinued production 62 00:03:30,880 --> 00:03:33,720 Speaker 3: of both the Model S and Model X, although those 63 00:03:33,760 --> 00:03:35,040 Speaker 3: commanded high price tags. 64 00:03:36,280 --> 00:03:40,280 Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with 65 00:03:40,360 --> 00:03:42,960 Speaker 2: us throughout the day for the latest roundup of companies 66 00:03:43,000 --> 00:03:46,120 Speaker 2: making news on Wall Street and for the latest market 67 00:03:46,160 --> 00:03:50,640 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 68 00:03:50,720 --> 00:03:54,200 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 69 00:03:54,280 --> 00:03:55,760 Speaker 2: the Bloomberg Business app.