Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Mover's Report,
Speaker 1: your roundup of companies making moves in the stock market.
Speaker 1: Harnessing the power of Bloomberg data.
Speaker 2: Let's take a look at some stocks on the move today.
Speaker 2: I'm Tom Keen with Paul Sweeney and Bloomberg's Lisa Mateo.
Speaker 3: Good morning, Good morning. Yeah. I'll try my best, So
Speaker 3: I'll start with the Intel ticker i NTC the share.
Speaker 1: There you go.
Speaker 3: You got the sound effects too. In the little und
Speaker 3: shares have been up as much as four percent. So
Speaker 3: here's what the deal sources selling Bloomberg. Intel approached Apple
Speaker 3: about an investment in the company. They also talked about
Speaker 3: how to work more closely together. Still in the early stages,
Speaker 3: might not even come to an agreement. But it's not
Speaker 3: just Apple. They're saying that they're talking with other companies too.
Speaker 3: But the thing is is that Apple was a longtime
Speaker 3: customer of Intel, but it switched to its own in
Speaker 3: house processors the past few years. So the Apple chips
Speaker 3: are now produced by Taiwan Semiconductor manufacturing. But they're saying that,
Speaker 3: you know what, the Apple is likely to stick with
Speaker 3: their own.
Speaker 2: I'm a living breathing example of this. My main computer
Speaker 2: at home is what's called a twenty nineteen Intel NEC
Speaker 2: and it was back before Taiwan Semi yep and all that,
Speaker 2: and it's all it's not at obsolescence yet, but you know,
Speaker 2: you know where they could, I mean you've been. It's
Speaker 2: when Dana Iives goes, that Ludlow goes and they do.
Speaker 2: They stand on stage and do the touchy only thing.
Speaker 2: They won't let me in. They said no ties allowed.
Speaker 2: But Lisa, seriously, they they're switching over and right now
Speaker 2: they have a plan to phase out the computers like
Speaker 2: I have at home. Don't tell missus Keith.
Speaker 4: And look at the I mean this Intel stock. Let's
Speaker 4: put this into perspective. This stock was in the doghouse.
Speaker 4: It was for years at so for the past five
Speaker 4: years compounded and your return of negative seven percent per year,
Speaker 4: this year the stock is up to fifty five percent.
Speaker 4: So it feels like it has suddenly caught the AI
Speaker 4: tailwind that it's so desperately needed. And I well, the
Speaker 4: government's in for teen center and Videa's in for five.
Speaker 4: Maybe Apple's going to be in saw me. This is
Speaker 4: their time to shine. Soft Bank so maybe maybe maybe
Speaker 4: this tike brings them in from the wilderness, the tech wilderness.
Speaker 4: Next we see.
Speaker 3: Okay, Oracle, we'll go there, O r C, stayeverye are
Speaker 3: you're lucky? I'm not going quantum. Okay. SO shares are
Speaker 3: down as much as three percent. It comes after they
Speaker 3: kick off one of the biggest bond sales of the year.
Speaker 3: So this was eighteen billion dollars US investment grade bonds.
Speaker 3: This came out yesterday. So it's ramping up spending right
Speaker 3: that we've been talking about it to meet those needs
Speaker 3: of all the AI boom. SO sources are saying demand
Speaker 3: peaked at nearly eighty eight billion dollars. So they're issuing
Speaker 3: dead in six parts. That includes a rare forty year bond.
Speaker 3: So what can the proceeds right from this sale be
Speaker 3: used for a few things? Okay, you got capital expenditures,
Speaker 3: few future investments or acquisitions, other general corporate purposes. But
Speaker 3: the thing is Oracle begun to fulfill these massive cloud
Speaker 3: infrastructure deals with customers like open Ai, customers like Meta.
Speaker 3: So over the next several years, Oracle there's projected it
Speaker 3: has been hundreds of billions of dollars to rent and
Speaker 3: power down.
Speaker 2: Look at this year I brought there. I literally stopped
Speaker 2: a shade yesterday. But the number I had at the
Speaker 2: time was a printed fifteen gazillion yes, say upside you
Speaker 2: just said eighteen gazillion. Ye Oh, seriously, Paul knows more
Speaker 2: about this than I do. They literally make five.
Speaker 4: Phone calls right, yeah, this is a fly by.
Speaker 2: Call called blackrock.
Speaker 4: They called JP Morgan, what called existing holders and say
Speaker 4: do you want to top up? Here's what's happening here
Speaker 4: in fiscal twenty two.
Speaker 2: You gotta live in the New Jersey shore to say.
Speaker 1: Top up, top up.
Speaker 4: That's literally what I say. It's a top up called
Speaker 4: you want top up your position? Fiscal twenty two four
Speaker 4: and a half billion of capital expenditures this year thirty
Speaker 4: five billion capital. So that their negative free Cashel because
Speaker 4: they're saying we're just throwing money against his AI think
Speaker 4: and hope for the best.
Speaker 2: My favorite screen, folks, for those of you were the
Speaker 2: terminal in the car, the WACC screen. Tom Sekunda told
Speaker 2: me about this. Let's pretty good. Way did average cost
Speaker 2: to capitol screen? Oracle. Lisa's like, why are we doing this?
Speaker 4: Oracle?
Speaker 2: Ready? Thirteen percent long term debt one percent, short term
Speaker 2: debt blended fourteen point one percent eighty six percent equity,
Speaker 2: so they got that's a lot of bonds compared to
Speaker 2: the other mag five six, seven eight, but still way
Speaker 2: below like Ford Motor. You know, right, others do we
Speaker 2: beat that to death?
Speaker 1: We did?
Speaker 2: Is there something to say, don't you do quantum?
Speaker 3: I'm not doing quantum?
Speaker 2: Toothpaste?
Speaker 3: Hell to CarMax okay, k MX. It's been down as
Speaker 3: much as thirteen percent, all right. So they had big,
Speaker 3: big Ernie's for share sales shortfalls in the second quarter.
Speaker 3: The reason why it looks so big compared to last
Speaker 3: quarter the previous quarter, people rushed to get cars because
Speaker 3: they were trying to get ahead of the twenty five
Speaker 3: percent riffs on the imports from April. So that's the
Speaker 3: reason why the tick down now. They also had losses.
Speaker 3: If you look at the loan side of the business,
Speaker 3: Carmack's Auto Finance, their income decreased more than eleven percent.
Speaker 3: Their provision for loan losses was one hundred and forty
Speaker 3: two million compared to one hundred and twelve million in
Speaker 3: the prior year. Second quarter, but it's starting to affect
Speaker 3: other stocks like Carvana.
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