WEBVTT - Tesla Declines; T-Mobile Beats on Subscriber Growth; IBM Slides Post-Earnings

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

0:00:16.640 --> 0:00:18.919
<v Speaker 1>Let's take a look at some stocks on the move today.

0:00:19.200 --> 0:00:22.840
<v Speaker 1>I'm Tom Keen with Paul Smeni and Bloomberg's Lisa Matteo

0:00:23.160 --> 0:00:25.960
<v Speaker 1>working right to Happy hour on Friday. She has the

0:00:26.040 --> 0:00:28.200
<v Speaker 1>Stock Movers. It's a podcast, Lisa.

0:00:28.400 --> 0:00:30.040
<v Speaker 3>We do a lot of earnings to get through, Okay,

0:00:30.080 --> 0:00:34.040
<v Speaker 3>so we'll start with Tesla. Tsla down nearly four percent.

0:00:34.360 --> 0:00:36.120
<v Speaker 3>So here's the thing. It was a record quarter of

0:00:36.200 --> 0:00:39.720
<v Speaker 3>vehicle sales, but profit fell. That extended the string of

0:00:39.720 --> 0:00:43.760
<v Speaker 3>weaker than expected profit to four quarters in a row. Now,

0:00:43.800 --> 0:00:46.600
<v Speaker 3>on the earnings call, Elon Musk, he spoke about a

0:00:46.600 --> 0:00:49.120
<v Speaker 3>few things. One, he talked about humanoid robots. He talked

0:00:49.159 --> 0:00:52.840
<v Speaker 3>about AI programs. He also talked about self driving technology.

0:00:52.880 --> 0:00:57.200
<v Speaker 3>He asked investors to back his trillion dollar compensation package too.

0:00:57.520 --> 0:00:59.760
<v Speaker 3>But what he really failed to touch upon in what

0:01:00.040 --> 0:01:02.360
<v Speaker 3>else we're saying is that how Tasla is going to

0:01:02.360 --> 0:01:04.959
<v Speaker 3>revive its core business of selling evs. And that's what

0:01:05.120 --> 0:01:06.959
<v Speaker 3>kind of they wanted to hear and they didn't get

0:01:07.000 --> 0:01:09.640
<v Speaker 3>that there was a forty percent drop in operating profit,

0:01:10.360 --> 0:01:13.759
<v Speaker 3>so that was the issue there. Their operating expenses is expensive,

0:01:13.800 --> 0:01:16.200
<v Speaker 3>sort of fifty percent to three point four billion in

0:01:16.240 --> 0:01:19.919
<v Speaker 3>the quarter, and tariff costs exceeding four hundred million dollars

0:01:19.920 --> 0:01:20.480
<v Speaker 3>for Tesla.

0:01:21.040 --> 0:01:23.479
<v Speaker 4>Yeah, I don't think it's about being a car company anymore.

0:01:23.480 --> 0:01:25.600
<v Speaker 4>He's trying to get into the focus on all the other.

0:01:25.480 --> 0:01:28.319
<v Speaker 1>Kids, just the car companies, all the other stuff.

0:01:28.360 --> 0:01:32.080
<v Speaker 4>Hope in prayers that's it is, But that's I would argue,

0:01:32.120 --> 0:01:34.240
<v Speaker 4>that's generally been the Tesla slash Elon.

0:01:34.120 --> 0:01:36.000
<v Speaker 1>Musk's story from day one time.

0:01:36.200 --> 0:01:38.840
<v Speaker 4>But now you're really have to hang your hat on.

0:01:38.840 --> 0:01:41.319
<v Speaker 1>All that, he said, Ludlow driving his Tesla with his

0:01:41.400 --> 0:01:42.880
<v Speaker 1>hands off the way I think he is.

0:01:44.400 --> 0:01:47.400
<v Speaker 4>Every time he he says he has a problem with

0:01:47.440 --> 0:01:48.200
<v Speaker 4>the Golden Gate Bridge.

0:01:48.280 --> 0:01:51.280
<v Speaker 1>Yeah, well, you fine, splashing.

0:01:50.760 --> 0:01:54.120
<v Speaker 3>Into the toll booths are an issue, he said, what

0:01:54.160 --> 0:01:56.520
<v Speaker 3>do you got next? Okay, T Mobile to take your

0:01:56.520 --> 0:01:59.040
<v Speaker 3>tm US shares have been kind of back and forth.

0:01:59.080 --> 0:02:01.640
<v Speaker 3>We've been back and forth. So it basically gained about

0:02:01.680 --> 0:02:05.160
<v Speaker 3>a million new mobile phone subscribers. It raised its outlook

0:02:05.200 --> 0:02:07.240
<v Speaker 3>for the year. It was all kept a flow because

0:02:07.240 --> 0:02:09.720
<v Speaker 3>they had that recent acquisition of US Cellular and it

0:02:09.800 --> 0:02:11.960
<v Speaker 3>absorbed about four and a half million customers from that.

0:02:12.720 --> 0:02:15.320
<v Speaker 3>It's their highest third quarter result in that category in

0:02:15.320 --> 0:02:17.280
<v Speaker 3>more than a decade, so it was some good news

0:02:17.280 --> 0:02:20.360
<v Speaker 3>for them. What also helped drive new subscribers. The analysts

0:02:20.360 --> 0:02:23.760
<v Speaker 3>are saying it's the Apple iPhone seventeen release in September.

0:02:23.800 --> 0:02:26.080
<v Speaker 3>People wanted it, and so they kind of traded and

0:02:26.120 --> 0:02:28.400
<v Speaker 3>went to that and they expect to add as many

0:02:28.400 --> 0:02:31.040
<v Speaker 3>as three point three million wild Lift subscribers for the year,

0:02:31.040 --> 0:02:34.120
<v Speaker 3>about one hundred and thirty thousand five or home internet customers.

0:02:34.120 --> 0:02:36.320
<v Speaker 3>But we've been talking about this big battle between them

0:02:36.480 --> 0:02:37.919
<v Speaker 3>at and T Verizon.

0:02:38.200 --> 0:02:39.000
<v Speaker 4>Where are you going to go?

0:02:39.040 --> 0:02:42.320
<v Speaker 1>And that's the question, where are people going now? I

0:02:42.360 --> 0:02:44.920
<v Speaker 1>don't I mean, there was a huge T mobile success

0:02:44.960 --> 0:02:46.680
<v Speaker 1>at one point, but I don't know really where it

0:02:46.760 --> 0:02:47.079
<v Speaker 1>is right.

0:02:47.280 --> 0:02:49.239
<v Speaker 3>It comes down to price. I'm actually going to start

0:02:49.280 --> 0:02:52.920
<v Speaker 3>shopping around so we'll see. Really, yes, I got to

0:02:52.960 --> 0:02:56.720
<v Speaker 3>cut and cut some expenses out somewhere.

0:02:56.800 --> 0:03:01.120
<v Speaker 1>If you're listening over to Mobile, a magenta.

0:03:00.720 --> 0:03:04.720
<v Speaker 3>T shirt, a new iPhone, there you go, what do

0:03:04.760 --> 0:03:07.880
<v Speaker 3>you got? Okay? I also want to go to IBM,

0:03:07.919 --> 0:03:09.880
<v Speaker 3>because their sharees have really been taking a hit, down

0:03:09.960 --> 0:03:14.160
<v Speaker 3>more than seven percent. Disappointing revenue. There were two key

0:03:14.240 --> 0:03:18.040
<v Speaker 3>software categories, including their closely watched red hat unit and

0:03:18.080 --> 0:03:20.280
<v Speaker 3>if you're wondering, what is that red Hat, So that

0:03:20.320 --> 0:03:23.880
<v Speaker 3>basically helps customers manage their data applications among different types

0:03:23.919 --> 0:03:27.600
<v Speaker 3>of computing equipment. But the investors see those categories as

0:03:27.680 --> 0:03:30.440
<v Speaker 3>critical to growth and they didn't see the growth, so

0:03:30.560 --> 0:03:33.320
<v Speaker 3>that's what they didn't like. Third quarter sales and that

0:03:33.440 --> 0:03:37.000
<v Speaker 3>hybrid cloud unit that includes red Hat increased fourteen percent,

0:03:37.040 --> 0:03:39.920
<v Speaker 3>which was a slow down from the previous period, but

0:03:40.000 --> 0:03:44.120
<v Speaker 3>also below estimates too, so investors were not happy with that.

0:03:44.480 --> 0:03:46.320
<v Speaker 4>Yeah, and the stocket you know, had been up thirty

0:03:46.360 --> 0:03:49.440
<v Speaker 4>percent this year, so right, getting some of the AI

0:03:49.600 --> 0:03:51.280
<v Speaker 4>love a little bit. And part of it was due

0:03:51.320 --> 0:03:53.480
<v Speaker 4>to that red Hat, which was an acquisition they made

0:03:53.840 --> 0:03:56.320
<v Speaker 4>I don't know, ten years ago maybe, and it was

0:03:56.920 --> 0:03:58.680
<v Speaker 4>a big big deal for them at the time to

0:03:58.720 --> 0:04:01.960
<v Speaker 4>try to turn this old stodgy tech company around. It

0:04:02.040 --> 0:04:04.360
<v Speaker 4>was working, so says on a Rock Rana. For years,

0:04:04.400 --> 0:04:05.640
<v Speaker 4>been a little bit of a hiccup.

0:04:05.400 --> 0:04:06.880
<v Speaker 1>Here this quarter, have they succeeded?

0:04:07.200 --> 0:04:10.520
<v Speaker 4>Yeah, I mean on Rock Rana from Bloomberg Intelligence. It says, Yeah,

0:04:10.560 --> 0:04:14.600
<v Speaker 4>that was a good acquisition. They somehow turn this battleship

0:04:14.960 --> 0:04:15.920
<v Speaker 4>kind of in the right direction.

0:04:15.960 --> 0:04:19.000
<v Speaker 2>But a little bit of it because says this stock

0:04:19.040 --> 0:04:23.080
<v Speaker 2>mover's report from Bloomberg Radio. Check back with us throughout

0:04:23.080 --> 0:04:25.880
<v Speaker 2>the day for the latest roundup of companies making news

0:04:25.920 --> 0:04:29.240
<v Speaker 2>on Wall Street and for the latest market moving headlines.

0:04:29.440 --> 0:04:33.440
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:33.480 --> 0:04:36.560
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:36.600 --> 0:04:37.960
<v Speaker 2>Bloomberg Business app.