1 00:00:02,480 --> 00:00:10,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:10,039 --> 00:00:13,520 Speaker 2: This is the closing bell on this stock movers report. 3 00:00:13,760 --> 00:00:16,680 Speaker 2: The company's making moves at the close of US trading 4 00:00:16,880 --> 00:00:21,360 Speaker 2: with Karl Masser, Tim Steneback, Romain Bostik, and Katie Greifel. 5 00:00:22,320 --> 00:00:25,000 Speaker 1: Got those Microsoft earnings which did show some sort of 6 00:00:25,040 --> 00:00:27,640 Speaker 1: proof of life when it comes to the AI spend meta, 7 00:00:27,720 --> 00:00:29,360 Speaker 1: at least did not show it, at least in the 8 00:00:29,680 --> 00:00:32,640 Speaker 1: view of investors. The question is will Amazon show it 9 00:00:32,760 --> 00:00:35,199 Speaker 1: those earnings crossing the wire right now? Net sales two 10 00:00:35,280 --> 00:00:37,760 Speaker 1: hundred point six billion dollars. The street was looking for 11 00:00:37,800 --> 00:00:41,160 Speaker 1: one to ninety seven. Amazon Web Services net sales forty 12 00:00:41,159 --> 00:00:42,880 Speaker 1: two point twenty three. That's a beat. 13 00:00:42,880 --> 00:00:44,479 Speaker 3: The street was looking for forty. 14 00:00:44,360 --> 00:00:48,320 Speaker 1: Point five seven billion dollars on that number, And even 15 00:00:48,320 --> 00:00:50,480 Speaker 1: when you x out the xf that's still about thirty 16 00:00:50,520 --> 00:00:54,280 Speaker 1: seven percent jump year over year. Operating margin overall for 17 00:00:54,320 --> 00:00:57,920 Speaker 1: the company thirteen point seven percent. That's above street estimates 18 00:00:57,960 --> 00:01:00,960 Speaker 1: of about twelve percent. Here's the forecast for the third quarter. 19 00:01:01,200 --> 00:01:05,080 Speaker 1: Amazon says expects sale net sales overall of one hundred 20 00:01:05,120 --> 00:01:08,319 Speaker 1: and ninety seven billion to two hundred and two billion dollars. 21 00:01:08,319 --> 00:01:10,240 Speaker 1: That actually looks a little bit light on the top line. 22 00:01:10,319 --> 00:01:12,800 Speaker 1: The street on average is looking for about two hundred 23 00:01:12,840 --> 00:01:14,240 Speaker 1: and four billion. 24 00:01:13,959 --> 00:01:15,399 Speaker 2: Dollars on average. 25 00:01:15,480 --> 00:01:18,919 Speaker 1: As far as the bottom line, the company says, actually, 26 00:01:18,920 --> 00:01:21,080 Speaker 1: I'm gonna skip the bottom line there for a second, Carol, 27 00:01:21,120 --> 00:01:22,880 Speaker 1: but we need to dig a little bit deeper into 28 00:01:22,880 --> 00:01:24,840 Speaker 1: the AWS numbers to see how things are going. 29 00:01:24,959 --> 00:01:25,240 Speaker 4: Yeah. 30 00:01:25,280 --> 00:01:29,240 Speaker 5: Absolutely, And you know, just look into the headline. We're 31 00:01:29,280 --> 00:01:31,839 Speaker 5: just kind of highlighting this third quarter net sales forecast 32 00:01:32,440 --> 00:01:36,360 Speaker 5: missing estimates. Even so though right now investors seem pretty 33 00:01:36,400 --> 00:01:39,200 Speaker 5: impressed that stock is up about six percent here in 34 00:01:39,240 --> 00:01:40,520 Speaker 5: the aftermarket tim. 35 00:01:40,360 --> 00:01:42,640 Speaker 3: Yeah, Amazon free cash flow fell to an outflow of 36 00:01:42,640 --> 00:01:45,240 Speaker 3: seven point six billion dollars for the trailing twelve months, 37 00:01:45,280 --> 00:01:47,560 Speaker 3: shares jumping six and a half percent right now. Third 38 00:01:47,640 --> 00:01:49,640 Speaker 3: quarter net sales one hundred and ninety seven to two 39 00:01:49,720 --> 00:01:51,440 Speaker 3: hundred and two. The estimate was for two hundred and 40 00:01:51,480 --> 00:01:55,840 Speaker 3: three point nine three billion dollars. Just some commentary coming 41 00:01:55,840 --> 00:01:59,800 Speaker 3: from Andy Jasse who talks about the growth of AW 42 00:02:00,280 --> 00:02:05,800 Speaker 3: and highlights the growth of AWS, noting that awscrew at 43 00:02:05,800 --> 00:02:07,880 Speaker 3: thirty six point seven percent year over year in the 44 00:02:07,880 --> 00:02:10,200 Speaker 3: second quarter. It was the fastest growth in eighteen quarters. 45 00:02:10,440 --> 00:02:12,880 Speaker 3: In the AI and Chips business each eclipsed run rates 46 00:02:13,000 --> 00:02:16,080 Speaker 3: of more than twenty five billion dollars. Amazon shares up 47 00:02:16,400 --> 00:02:18,080 Speaker 3: about eight percent in the after hours. 48 00:02:18,160 --> 00:02:20,560 Speaker 4: Yeah, just going through some of these other results here 49 00:02:20,560 --> 00:02:24,560 Speaker 4: for Amazon second quarter North American net sales actually above 50 00:02:24,680 --> 00:02:27,400 Speaker 4: estimates here one one hundred and sixteen billion dollars versus 51 00:02:27,440 --> 00:02:32,760 Speaker 4: estimates of about one thirteen physical stores net sales missing 52 00:02:32,880 --> 00:02:36,959 Speaker 4: estimates just slightly five point seven nine billion dollars versus 53 00:02:37,040 --> 00:02:40,399 Speaker 4: estimates of about five point eight seven billion dollars. Again, 54 00:02:40,480 --> 00:02:43,040 Speaker 4: doesn't seem to be affecting the shares. The focus here 55 00:02:43,320 --> 00:02:46,880 Speaker 4: really on that net sales beat. It is a stock 56 00:02:46,919 --> 00:02:48,839 Speaker 4: that is moving quite higher in the post market. 57 00:02:48,919 --> 00:02:50,480 Speaker 1: Romain, Yeah, I'm still trying to look through and see 58 00:02:50,520 --> 00:02:52,320 Speaker 1: if we can get a little bit more clarity on 59 00:02:52,360 --> 00:02:54,359 Speaker 1: the backlog here, because that, of course is what a 60 00:02:54,400 --> 00:02:57,280 Speaker 1: lot of people are focused on with reguards to AWS 61 00:02:57,560 --> 00:03:01,320 Speaker 1: and a beat on that particular segment number. Those operating 62 00:03:01,400 --> 00:03:03,640 Speaker 1: income numbers that I was trying to get to. This 63 00:03:03,720 --> 00:03:06,280 Speaker 1: is for the company as a whole. The company says 64 00:03:06,320 --> 00:03:08,960 Speaker 1: that for the current quarter it does expect operating income 65 00:03:09,200 --> 00:03:11,160 Speaker 1: of about twenty two and a half to about twenty 66 00:03:11,240 --> 00:03:13,720 Speaker 1: six and a half billion dollars. The street was looking 67 00:03:13,760 --> 00:03:16,480 Speaker 1: for about twenty five. So basically it looks like these 68 00:03:16,560 --> 00:03:18,560 Speaker 1: numbers for the second quarter as well as for the 69 00:03:18,600 --> 00:03:21,520 Speaker 1: third quarter are right around to slightly above and in 70 00:03:21,560 --> 00:03:23,839 Speaker 1: one case slightly below what the street is looking for. 71 00:03:23,880 --> 00:03:27,120 Speaker 1: But Carolyn tim everybody really wants to know here is 72 00:03:27,200 --> 00:03:30,760 Speaker 1: just how much further this CAPEC spend could take AWS 73 00:03:30,800 --> 00:03:31,919 Speaker 1: and whether there is a return. 74 00:03:31,919 --> 00:03:34,079 Speaker 3: Curious about why this net sales number came in light 75 00:03:34,440 --> 00:03:36,440 Speaker 3: I didn't know either. Yeah, yeah, one ninety seven to 76 00:03:36,480 --> 00:03:38,480 Speaker 3: two oh two. The Estimus for two oh three ports, 77 00:03:38,480 --> 00:03:40,880 Speaker 3: so basically Estimus for two oh four, even at the 78 00:03:40,920 --> 00:03:42,880 Speaker 3: high end of the guidance, it'd shy by about two 79 00:03:42,880 --> 00:03:44,920 Speaker 3: billion dollars. I'm going to be interested to hear about 80 00:03:45,080 --> 00:03:48,160 Speaker 3: what that is attributed to and why analysts didn't get 81 00:03:48,160 --> 00:03:48,720 Speaker 3: what they want. 82 00:03:48,840 --> 00:03:50,880 Speaker 1: I just want to say too, sorry, just real quickly, 83 00:03:50,920 --> 00:03:52,720 Speaker 1: because I was looking at the backlog. We're now getting 84 00:03:52,720 --> 00:03:55,320 Speaker 1: the headlines here for the AI and chips segment that 85 00:03:55,360 --> 00:03:57,680 Speaker 1: a lot of people have been focused on. Amazon is 86 00:03:57,720 --> 00:04:02,040 Speaker 1: saying that it is that its seating twenty five billion 87 00:04:02,080 --> 00:04:07,080 Speaker 1: dollars annual revenue run rate for aws's AI unit so 88 00:04:07,160 --> 00:04:09,960 Speaker 1: a unit of a unit on a twenty five billion 89 00:04:10,000 --> 00:04:12,240 Speaker 1: dollar annual revenue run rate. I know run rate is 90 00:04:12,240 --> 00:04:14,160 Speaker 1: a dirty word for some people, but you know you 91 00:04:14,240 --> 00:04:15,480 Speaker 1: got to just take it as you see it. For 92 00:04:15,720 --> 00:04:18,280 Speaker 1: right now, the company's saying the AI in chips each 93 00:04:18,360 --> 00:04:21,359 Speaker 1: eclipse run rates of over twenty five a billion dollars. 94 00:04:21,440 --> 00:04:22,279 Speaker 3: Here's what's kind of wild. 95 00:04:22,279 --> 00:04:23,960 Speaker 5: Do you don't think of Amazon as a chip company? 96 00:04:24,000 --> 00:04:24,160 Speaker 4: Right? 97 00:04:24,200 --> 00:04:26,480 Speaker 5: And like we know, increasingly all of these companies are 98 00:04:26,480 --> 00:04:28,479 Speaker 5: certainly getting more involved in all of this. But to 99 00:04:28,520 --> 00:04:31,479 Speaker 5: get that kind of a number on its pretty impressive. 100 00:04:31,520 --> 00:04:33,000 Speaker 5: I just want to go to something that's in the 101 00:04:33,000 --> 00:04:34,960 Speaker 5: press release just gives you an idea of what this 102 00:04:35,040 --> 00:04:37,960 Speaker 5: company is thinking. They announced an investment of a billion 103 00:04:38,000 --> 00:04:40,960 Speaker 5: dollars to create AWS Forward Deployed Engineering. So it's a 104 00:04:40,960 --> 00:04:44,839 Speaker 5: team of AI engineers embedded directly with customers, embedded directly 105 00:04:44,880 --> 00:04:48,240 Speaker 5: with customers to co develop and deploy agentic AI solutions 106 00:04:48,279 --> 00:04:52,000 Speaker 5: in days rather than months. Early customers include Allen Institute, 107 00:04:52,040 --> 00:04:55,919 Speaker 5: COS Automotive, the MBA, the NFL, RICO, and Southwest Airlines. 108 00:04:55,960 --> 00:04:59,599 Speaker 5: I just the way AI is kind of invading in 109 00:04:59,640 --> 00:05:02,960 Speaker 5: a good, bad way our world and these companies their 110 00:05:03,000 --> 00:05:05,800 Speaker 5: involvement to give an idea of where that money is 111 00:05:05,839 --> 00:05:08,359 Speaker 5: going and where the ROI might be coming in the future. 112 00:05:08,360 --> 00:05:09,800 Speaker 5: I just think it's kind of interesting, and. 113 00:05:09,800 --> 00:05:12,000 Speaker 4: You know, as a credit girl, I am of course 114 00:05:12,080 --> 00:05:15,039 Speaker 4: really interested, my sources are interested and whether we're actually 115 00:05:15,120 --> 00:05:17,840 Speaker 4: going to see an ROI on all that spending. Just 116 00:05:17,880 --> 00:05:20,560 Speaker 4: a reminder here, the company has sold sixty two billion 117 00:05:20,600 --> 00:05:23,520 Speaker 4: dollars of bonds in the US this year. This was 118 00:05:23,560 --> 00:05:25,760 Speaker 4: a company that really was not raising any debt. They 119 00:05:25,760 --> 00:05:28,200 Speaker 4: didn't really need to for the longest time. But that 120 00:05:28,320 --> 00:05:31,760 Speaker 4: just goes to show their commitment to spending and building 121 00:05:31,760 --> 00:05:33,160 Speaker 4: out artificial intelligence. 122 00:05:33,240 --> 00:05:34,760 Speaker 1: All right, We're going to continue to keep an eye 123 00:05:34,839 --> 00:05:36,760 Speaker 1: here on Amazon and dive a little bit deeper into 124 00:05:36,800 --> 00:05:39,640 Speaker 1: those numbers. We're getting some other earnings as well, including Roadblocks, 125 00:05:39,680 --> 00:05:42,400 Speaker 1: which is down about ten percent right now. Coinbase to 126 00:05:42,440 --> 00:05:45,279 Speaker 1: share is kind of fluctuating along the water line here 127 00:05:45,480 --> 00:05:48,360 Speaker 1: as their results now crossing the wire. The company's revenue 128 00:05:48,440 --> 00:05:51,880 Speaker 1: numbers missing ever so slightly about one point two two billion. 129 00:05:52,120 --> 00:05:54,840 Speaker 1: The street on average was looking for about one point 130 00:05:54,960 --> 00:05:58,560 Speaker 1: two nine billion dollars. There's a bigger story going on here. 131 00:05:58,600 --> 00:05:59,840 Speaker 1: You need a little bit of time to get through 132 00:05:59,880 --> 00:06:00,640 Speaker 1: the release, Carol. 133 00:06:00,680 --> 00:06:02,800 Speaker 5: All right. In the meantime, let's go to Rivian coming 134 00:06:02,800 --> 00:06:06,040 Speaker 5: out with its latest results. Second quarter revenue, folks, a 135 00:06:06,040 --> 00:06:08,600 Speaker 5: little bit better than Street was looking for one point 136 00:06:08,720 --> 00:06:11,200 Speaker 5: sixty six billion. The street estimate was for one point 137 00:06:11,200 --> 00:06:14,360 Speaker 5: fifty two billion. Second quarter loss per share of sixty 138 00:06:14,400 --> 00:06:17,680 Speaker 5: three cents versus a loss of ninety seven cents a share. 139 00:06:17,760 --> 00:06:21,600 Speaker 5: Year over year second quarter vehicles delivered twelve thousand and 140 00:06:21,600 --> 00:06:23,640 Speaker 5: one to ninety four The Street estimate was for less 141 00:06:23,680 --> 00:06:27,080 Speaker 5: than that of about eleven four hundred and seventy one. 142 00:06:27,120 --> 00:06:30,960 Speaker 5: And just for the outlook, still seize fiscal year vehicles 143 00:06:30,960 --> 00:06:34,440 Speaker 5: delivered sixty five thousand to seventy seas fiscal year adjusted 144 00:06:34,520 --> 00:06:38,080 Speaker 5: EBITDA emily loss of one point eight to two billion. 145 00:06:38,320 --> 00:06:41,119 Speaker 5: The estimated loss was for two point zero one billion, guys, 146 00:06:41,200 --> 00:06:43,000 Speaker 5: And the stock right now up about one percent in 147 00:06:43,040 --> 00:06:43,760 Speaker 5: the aftermarket. 148 00:06:43,839 --> 00:06:46,000 Speaker 1: All right, just so we're keeping an eye on this too. 149 00:06:46,040 --> 00:06:47,400 Speaker 1: I do want to go just go back to coinbase 150 00:06:47,520 --> 00:06:50,200 Speaker 1: just real quickly here, guys. I was looking at those 151 00:06:50,200 --> 00:06:53,680 Speaker 1: transaction numbers. They are a well below Street estimates five 152 00:06:53,760 --> 00:06:56,120 Speaker 1: hundred and ninety nine million dollars for coin Base two 153 00:06:56,200 --> 00:06:59,679 Speaker 1: Q transaction revenue. The street was looking for six thirty five, 154 00:07:00,320 --> 00:07:01,920 Speaker 1: So that kind of gets to this idea of why 155 00:07:01,960 --> 00:07:04,320 Speaker 1: you had the slight miss on the top line on numbers. 156 00:07:04,320 --> 00:07:06,880 Speaker 1: And we were speaking with Glad Tene over at Robinhood earlier. 157 00:07:06,920 --> 00:07:09,720 Speaker 1: Remember obviously that's a much more diversified company, but their 158 00:07:09,760 --> 00:07:12,160 Speaker 1: crypto business did not do well, and that was a 159 00:07:12,160 --> 00:07:14,119 Speaker 1: big a lot of questions here that with the price 160 00:07:14,160 --> 00:07:17,400 Speaker 1: of crypto, particularly bitcoin depress, that that was weighing on 161 00:07:17,480 --> 00:07:20,400 Speaker 1: trading activity. In the same note here, we are getting 162 00:07:20,440 --> 00:07:23,720 Speaker 1: our innings out of strategy here. Their revenue basically on 163 00:07:23,840 --> 00:07:26,160 Speaker 1: the nose, in line with estimates at about one hundred 164 00:07:26,160 --> 00:07:28,840 Speaker 1: and twenty two point four million dollars of cash and 165 00:07:28,880 --> 00:07:31,280 Speaker 1: cash equivalents coming in a little bit light at one 166 00:07:31,320 --> 00:07:35,679 Speaker 1: point seven so coin based down, strategy down ever so slightly. There, 167 00:07:35,920 --> 00:07:37,240 Speaker 1: we're getting some other earnings as well. 168 00:07:37,200 --> 00:07:40,280 Speaker 4: Emily, Yeah, remain. We're also getting Reddit here third quarter 169 00:07:40,360 --> 00:07:43,960 Speaker 4: revenue forecast feeding estimates. They do see revenue eight hundred 170 00:07:43,960 --> 00:07:45,920 Speaker 4: and sixty million to eight hundred and seventy million, that 171 00:07:45,960 --> 00:07:48,960 Speaker 4: was versus estimates of eight twenty nine point four million. 172 00:07:49,000 --> 00:07:51,840 Speaker 4: The stocks go down in the after hours about three 173 00:07:51,920 --> 00:07:54,840 Speaker 4: percent right now, just looking through some of these other results. 174 00:07:54,840 --> 00:07:58,000 Speaker 4: The second quarter revenue also beat estimates, up sixty one 175 00:07:58,040 --> 00:08:01,880 Speaker 4: percent year over year, So might kind of take a 176 00:08:01,920 --> 00:08:03,960 Speaker 4: little bit of digging here to see what's weighing on 177 00:08:04,040 --> 00:08:07,920 Speaker 4: the stock Daily active users just a slight beat here, 178 00:08:07,960 --> 00:08:11,760 Speaker 4: one hundred thirty point three million versussessments of about just 179 00:08:11,800 --> 00:08:13,040 Speaker 4: one hundred and thirty flat. 180 00:08:13,080 --> 00:08:18,560 Speaker 2: Here the Stock Movers Report from Bloomberg Radio. 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