WEBVTT - Intel-Apple Possible Investment; Oracle Dips; Carmax Slides

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Mover's Report,

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<v Speaker 1>your roundup of companies making moves in the stock market.

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<v Speaker 1>Harnessing the power of Bloomberg data.

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<v Speaker 2>Let's take a look at some stocks on the move today.

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<v Speaker 2>I'm Tom Keen with Paul Sweeney and Bloomberg's Lisa Mateo.

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<v Speaker 3>Good morning, Good morning. Yeah. I'll try my best, So

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<v Speaker 3>I'll start with the Intel ticker i NTC the share.

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<v Speaker 1>There you go.

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<v Speaker 3>You got the sound effects too. In the little und

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<v Speaker 3>shares have been up as much as four percent. So

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<v Speaker 3>here's what the deal sources selling Bloomberg. Intel approached Apple

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<v Speaker 3>about an investment in the company. They also talked about

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<v Speaker 3>how to work more closely together. Still in the early stages,

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<v Speaker 3>might not even come to an agreement. But it's not

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<v Speaker 3>just Apple. They're saying that they're talking with other companies too.

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<v Speaker 3>But the thing is is that Apple was a longtime

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<v Speaker 3>customer of Intel, but it switched to its own in

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<v Speaker 3>house processors the past few years. So the Apple chips

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<v Speaker 3>are now produced by Taiwan Semiconductor manufacturing. But they're saying that,

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<v Speaker 3>you know what, the Apple is likely to stick with

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<v Speaker 3>their own.

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<v Speaker 2>I'm a living breathing example of this. My main computer

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<v Speaker 2>at home is what's called a twenty nineteen Intel NEC

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<v Speaker 2>and it was back before Taiwan Semi yep and all that,

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<v Speaker 2>and it's all it's not at obsolescence yet, but you know,

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<v Speaker 2>you know where they could, I mean you've been. It's

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<v Speaker 2>when Dana Iives goes, that Ludlow goes and they do.

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<v Speaker 2>They stand on stage and do the touchy only thing.

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<v Speaker 2>They won't let me in. They said no ties allowed.

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<v Speaker 2>But Lisa, seriously, they they're switching over and right now

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<v Speaker 2>they have a plan to phase out the computers like

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<v Speaker 2>I have at home. Don't tell missus Keith.

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<v Speaker 4>And look at the I mean this Intel stock. Let's

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<v Speaker 4>put this into perspective. This stock was in the doghouse.

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<v Speaker 4>It was for years at so for the past five

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<v Speaker 4>years compounded and your return of negative seven percent per year,

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<v Speaker 4>this year the stock is up to fifty five percent.

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<v Speaker 4>So it feels like it has suddenly caught the AI

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<v Speaker 4>tailwind that it's so desperately needed. And I well, the

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<v Speaker 4>government's in for teen center and Videa's in for five.

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<v Speaker 4>Maybe Apple's going to be in saw me. This is

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<v Speaker 4>their time to shine. Soft Bank so maybe maybe maybe

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<v Speaker 4>this tike brings them in from the wilderness, the tech wilderness.

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<v Speaker 4>Next we see.

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<v Speaker 3>Okay, Oracle, we'll go there, O r C, stayeverye are

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<v Speaker 3>you're lucky? I'm not going quantum. Okay. SO shares are

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<v Speaker 3>down as much as three percent. It comes after they

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<v Speaker 3>kick off one of the biggest bond sales of the year.

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<v Speaker 3>So this was eighteen billion dollars US investment grade bonds.

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<v Speaker 3>This came out yesterday. So it's ramping up spending right

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<v Speaker 3>that we've been talking about it to meet those needs

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<v Speaker 3>of all the AI boom. SO sources are saying demand

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<v Speaker 3>peaked at nearly eighty eight billion dollars. So they're issuing

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<v Speaker 3>dead in six parts. That includes a rare forty year bond.

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<v Speaker 3>So what can the proceeds right from this sale be

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<v Speaker 3>used for a few things? Okay, you got capital expenditures,

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<v Speaker 3>few future investments or acquisitions, other general corporate purposes. But

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<v Speaker 3>the thing is Oracle begun to fulfill these massive cloud

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<v Speaker 3>infrastructure deals with customers like open Ai, customers like Meta.

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<v Speaker 3>So over the next several years, Oracle there's projected it

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<v Speaker 3>has been hundreds of billions of dollars to rent and

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<v Speaker 3>power down.

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<v Speaker 2>Look at this year I brought there. I literally stopped

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<v Speaker 2>a shade yesterday. But the number I had at the

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<v Speaker 2>time was a printed fifteen gazillion yes, say upside you

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<v Speaker 2>just said eighteen gazillion. Ye Oh, seriously, Paul knows more

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<v Speaker 2>about this than I do. They literally make five.

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<v Speaker 4>Phone calls right, yeah, this is a fly by.

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<v Speaker 2>Call called blackrock.

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<v Speaker 4>They called JP Morgan, what called existing holders and say

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<v Speaker 4>do you want to top up? Here's what's happening here

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<v Speaker 4>in fiscal twenty two.

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<v Speaker 2>You gotta live in the New Jersey shore to say.

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<v Speaker 1>Top up, top up.

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<v Speaker 4>That's literally what I say. It's a top up called

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<v Speaker 4>you want top up your position? Fiscal twenty two four

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<v Speaker 4>and a half billion of capital expenditures this year thirty

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<v Speaker 4>five billion capital. So that their negative free Cashel because

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<v Speaker 4>they're saying we're just throwing money against his AI think

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<v Speaker 4>and hope for the best.

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<v Speaker 2>My favorite screen, folks, for those of you were the

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<v Speaker 2>terminal in the car, the WACC screen. Tom Sekunda told

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<v Speaker 2>me about this. Let's pretty good. Way did average cost

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<v Speaker 2>to capitol screen? Oracle. Lisa's like, why are we doing this?

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<v Speaker 4>Oracle?

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<v Speaker 2>Ready? Thirteen percent long term debt one percent, short term

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<v Speaker 2>debt blended fourteen point one percent eighty six percent equity,

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<v Speaker 2>so they got that's a lot of bonds compared to

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<v Speaker 2>the other mag five six, seven eight, but still way

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<v Speaker 2>below like Ford Motor. You know, right, others do we

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<v Speaker 2>beat that to death?

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<v Speaker 1>We did?

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<v Speaker 2>Is there something to say, don't you do quantum?

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<v Speaker 3>I'm not doing quantum?

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<v Speaker 2>Toothpaste?

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<v Speaker 3>Hell to CarMax okay, k MX. It's been down as

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<v Speaker 3>much as thirteen percent, all right. So they had big,

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<v Speaker 3>big Ernie's for share sales shortfalls in the second quarter.

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<v Speaker 3>The reason why it looks so big compared to last

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<v Speaker 3>quarter the previous quarter, people rushed to get cars because

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<v Speaker 3>they were trying to get ahead of the twenty five

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<v Speaker 3>percent riffs on the imports from April. So that's the

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<v Speaker 3>reason why the tick down now. They also had losses.

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<v Speaker 3>If you look at the loan side of the business,

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<v Speaker 3>Carmack's Auto Finance, their income decreased more than eleven percent.

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<v Speaker 3>Their provision for loan losses was one hundred and forty

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<v Speaker 3>two million compared to one hundred and twelve million in

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<v Speaker 3>the prior year. Second quarter, but it's starting to affect

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<v Speaker 3>other stocks like Carvana.

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