WEBVTT - SpaceX Slips on 2Q Revenue; AMD Tumbles on Forecast; Paramount Skydance Rallies

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>I'm Caerl Masser along with Tim Stanevek. We do want

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<v Speaker 3>to also get to some stocks on the move with

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<v Speaker 3>us as Bailly Lipsheltz, Bloomberg News Senior Equities reporter. Also

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<v Speaker 3>with us, of course as Max Chafkin, Bloomberg Business Week

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<v Speaker 3>Senior reporter, co host of the Everybody's Business podcast. And

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<v Speaker 3>I can assume, Bailly, that your number one stock you're

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<v Speaker 3>looking at in the aftermarket is SpaceX.

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<v Speaker 4>None other than SpaceX ticker SPCX. For those of you

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<v Speaker 4>trading the stock down seven percent, Max, It's funny because

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<v Speaker 4>initially we say, okay, stock goes up four and a

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<v Speaker 4>half percent post market earnings, look fine, No one really cares.

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<v Speaker 1>But the main real driver is the stock was up.

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<v Speaker 4>Almost sixteen percent in two days, so it's really just

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<v Speaker 4>giving back some of those games, essentially trading to where

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<v Speaker 4>it was this time yesterday. So I know the big

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<v Speaker 4>thing to me, guys is we come into this everyone's like,

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<v Speaker 4>oh SpaceX arnings. First off, it's typically SpaceX losses. Let's

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<v Speaker 4>be real, don't call it results results. But it was

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<v Speaker 4>interesting that Elon kind of kicked off the call. I

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<v Speaker 4>don't know, Max, I didn't have that on my Bigo card.

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<v Speaker 4>Did you make a Bingo card this year?

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<v Speaker 5>There was no Beingo car, but of course I have

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<v Speaker 5>my mental Bingo card at any time, you know, any

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<v Speaker 5>On mus company reports earnings.

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<v Speaker 6>Uh.

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<v Speaker 5>I think Elon Musk loves to be at the center

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<v Speaker 5>of these companies, and there's always been this tension with

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<v Speaker 5>SpaceX because you know, unlike a Tesla, uh, SpaceX has

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<v Speaker 5>a long time veteran well respected operating executive in president

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<v Speaker 5>when shot well, and so there's always been this question, well, well,

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<v Speaker 5>maybe they will sort of push her more to the center,

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<v Speaker 5>especially as Elon Musk has grown more controversial. But I

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<v Speaker 5>think when you're talking about the way this company is

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<v Speaker 5>pivoted away from being the now, of course they do,

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<v Speaker 5>as Tim was saying, they do have a lot of

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<v Speaker 5>contracts with US government. Those contracts are just doing very well,

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<v Speaker 5>thank you very much. But as they pivoted towards data

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<v Speaker 5>centers and so on, then it becomes the Elon Musk show.

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<v Speaker 5>It becomes here is the guy who spins a fantastical

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<v Speaker 5>tale of the future to do that, and so far,

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<v Speaker 5>I guess investors are kind of meh on it, meh

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<v Speaker 5>for now.

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<v Speaker 4>I mean, the thing that I've found fascinating covering this

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<v Speaker 4>going into the IPO was Okay, no, this is a

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<v Speaker 4>space monopoly. But then getting ready for the launch, it's like, well, actually,

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<v Speaker 4>twenty six and a half of trillion of that twenty

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<v Speaker 4>eight and a half trillion dollars TAM.

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<v Speaker 1>Is really AI.

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<v Speaker 4>So it's it's a space business, but like, let's sell

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<v Speaker 4>the dream, much like Tesla, where don't worry about the

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<v Speaker 4>actual underlying business.

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<v Speaker 1>Look at the different levers we could pull.

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<v Speaker 5>Well, the awkward thing about a monopoly is you don't

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<v Speaker 5>have a lot of growth potential and so and so

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<v Speaker 5>that is that I think that is the tension. They

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<v Speaker 5>need to find a way to keep this advantage, which

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<v Speaker 5>is that they launch most of the stuff to space

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<v Speaker 5>while also spinning a growth story. And of course the

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<v Speaker 5>way that they've opted to do that is via Starlink

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<v Speaker 5>is saying actually, this launch business is yeah, you can

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<v Speaker 5>think of it as a standalone launch business, but really

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<v Speaker 5>it's the.

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<v Speaker 1>Way we get these satellites into order.

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<v Speaker 4>Well, I remember talking to investors before the IPO, and

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<v Speaker 4>I was kind of like, are you surprised by this

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<v Speaker 4>repositioning and they were like, well, you.

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<v Speaker 1>Can't disprove it.

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<v Speaker 4>You can't say that they aren't going to achieve this

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<v Speaker 4>because you're fundamentally it's not there yet, so it's still

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<v Speaker 4>a dream.

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<v Speaker 3>All. The thing I will say is you look at

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<v Speaker 3>the three different business sectors AI, connectivity, and space. I

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<v Speaker 3>mean where they're spending in terms of capex. It's on

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<v Speaker 3>the AI side of things.

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<v Speaker 6>Data centers.

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<v Speaker 3>Yeah, I mean that's where they're really emphasizing. We got

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<v Speaker 3>to talk about two other names while we've got baily Max.

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<v Speaker 3>Feel free to chime in.

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<v Speaker 1>We love, we Love, we Love.

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<v Speaker 3>AMD also reported and that stock was down in the aftermarket.

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<v Speaker 4>Yeah, Amda ticker AMD down seven and a half percent.

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<v Speaker 4>This does come after latest sales outlook less than people

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<v Speaker 4>were looking for and kind of looking at that, you

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<v Speaker 4>really have to keep in mind this is a stock

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<v Speaker 4>that last two days was up, you know, seven or

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<v Speaker 4>eight percent. The whole kind of ebbs and flows of

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<v Speaker 4>everything going on with chips, so lofty expectations on the

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<v Speaker 4>buy side. So even if you're missing maybe what the

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<v Speaker 4>selside was looking for. Typically the byside whisper number is

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<v Speaker 4>a much higher bar.

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<v Speaker 3>Yeah, exactly, and so a stock that's been on a

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<v Speaker 3>tear paramounts guidance.

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<v Speaker 6>Let's go to Paramount's guidance. Psky, is the tick.

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<v Speaker 1>Or Bailey not really moving down?

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<v Speaker 3>Yeah?

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<v Speaker 7>I know, even though two million new customers for Paramount plus,

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<v Speaker 7>including some of those to watch the FIFA World Cup.

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<v Speaker 1>And you're a big sports ball guy.

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<v Speaker 6>No I'm not.

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<v Speaker 7>I am now becoming a sports dad because my son

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<v Speaker 7>likes sports, so I am, and I'm learning about sports.

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<v Speaker 1>So you're paying up for the Paramount.

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<v Speaker 7>Oh my god, no, we paid for Fox whatever Fox's

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<v Speaker 7>thing is. I forget what it's called one Fox one.

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<v Speaker 6>Thank you. It sounds like Max is a sports dad too.

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<v Speaker 7>Thank you for the reminder to maybe amend the subscription

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<v Speaker 7>now at the fold by men.

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<v Speaker 1>You mean, oh, you know, dial back, spend real.

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<v Speaker 6>Watching on that was World Cup games?

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<v Speaker 3>Can I just say though, on this release, a lot

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<v Speaker 3>of cost cutting from the merger is what's kind of

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<v Speaker 3>helping it, right, I mean.

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<v Speaker 1>That's I don't know.

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<v Speaker 4>I will not talk about things I don't understand, like

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<v Speaker 4>judges and kind of court cases related to MNA.

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<v Speaker 3>No, but I'm just saying cost cuts, you know, with

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<v Speaker 3>the merger. I know we're still waiting on this one.

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<v Speaker 3>Any thoughts Max.

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<v Speaker 1>No, SAE, pounded failure. I think this, I think this

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<v Speaker 1>legal fight is going to be really interesting.

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<v Speaker 5>Obviously, that is going to say a lot about where

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<v Speaker 5>this company goes.

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<v Speaker 3>If Paramount doesn't close it's deale with Warner Brothers by

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<v Speaker 3>September thirty, it will begin occurring a six hundred and

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<v Speaker 3>fifty million dollars quarterly ticking fee to Warner Brothers shareholders.

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<v Speaker 6>So does that mean David's aswal gets more money?

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<v Speaker 3>Kitchen kitching?

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<v Speaker 6>Okay, just wondering.

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