Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look now at some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg
Speaker 1: News senior equities reporter Bailey Lipshultz, and another really big
Speaker 1: week for earnings. We are right in the thick of it, Bailey,
Speaker 1: and we're gonna be hearing a lot from big tech
Speaker 1: names as well, starting this Wednesday with Tesla. I guess
Speaker 1: Elon Musks wants us to think about Tesla as a
Speaker 1: tech company more than a car company.
Speaker 3: Right, No, exactly when you talk to Elan or even
Speaker 3: just look at what he posts on social media conversations
Speaker 3: around the company, Tesla is no longer just a car company.
Speaker 3: It's the future of taxis, it's a robot company. It's
Speaker 3: increasingly in terms of capital expenditure, a AI company, and
Speaker 3: a chip making company. So that's kind of the big
Speaker 3: push to no longer think about Tesla just as the
Speaker 3: company that makes electric vehicles.
Speaker 1: But going into these earnings, of course, we did get
Speaker 1: some delivery numbers on the core business from Tesla kind
Speaker 1: of a beat when it comes to their second quarter
Speaker 1: vehicle deliveries. I mean, how does that set the bar
Speaker 1: in terms of what we could hear on some of
Speaker 1: those other aspects of the business you were just talking about.
Speaker 3: Yeah, No, I think that sets kind of a clear
Speaker 3: expectation for what the core business will deliver. The big
Speaker 3: question from that is, Okay, what are the financial implications
Speaker 3: from strong deliveries? How does that ultimately impact the business
Speaker 3: on the top and bottom line. Again, this is a
Speaker 3: company that hasn't grown car sales as quickly as many
Speaker 3: on Wall Street would have anticipated, But the big question
Speaker 3: now shifts towards Okay, how much is the company spending
Speaker 3: on things like tara fab, the partnership to build out
Speaker 3: chips alongside SpaceX, How is the company thinking about spending
Speaker 3: for optimists? This robot that they've long been talking about
Speaker 3: but haven't really delivered, kind of a key update on
Speaker 3: the humanoid robot project in recent months, in recent core
Speaker 3: and really the big key topic of discussion on the
Speaker 3: earnings call expected to be around robotaxi.
Speaker 1: And also on Wednesday, we're going to hear from another
Speaker 1: company that we think of more traditionally, I think as
Speaker 1: a tech company, one of those big mag seven players
Speaker 1: in Google parent alphabet of course, one of the big
Speaker 1: spenders in this big wave of AI Capex that it
Speaker 1: seems like we've been talking about all year long.
Speaker 3: Yeah, I think when you look at analyst expectations, yes
Speaker 3: we will in the wake of earnings talk about software. Yes,
Speaker 3: in the wake of that, we'll be talking about cloud growth.
Speaker 3: But it does come back to that CAPEX number. And
Speaker 3: we saw analysts coming out from City saying they continue
Speaker 3: to expect all of these hyperscalers to not only deliver
Speaker 3: greater revenues, but also to spend more. And this has
Speaker 3: been a market that has been so heavily driven by
Speaker 3: these mag seven names, these big spenders continuing to spend
Speaker 3: and spend on AI infrastructure. So the big question will
Speaker 3: be are they able to build out their TPUs. They're
Speaker 3: kind of chipping that opportunity again. This is a company
Speaker 3: that plays across the entire suite of technology, and can
Speaker 3: they deliver on the upside because over the last two
Speaker 3: weeks they're up about three percent, which stands out in
Speaker 3: a market that's been up one day and down the.
Speaker 1: Next, and certainly when you think about those TPUs, you
Speaker 1: think as well about the competition with Nvidia and the GPUs.
Speaker 1: There where is Alphabet in terms of that aspect of
Speaker 1: the business.
Speaker 3: They're working to build it out. It's obviously very early days.
Speaker 3: These are two technologies that are somewhat complimentary. They do
Speaker 3: kind of compete, but I don't think many people would
Speaker 3: say the core business from the TPUs, the core business
Speaker 3: from Google and Alphabet is going after Jensen Wong's lunch,
Speaker 3: if you will. So the big question is can they
Speaker 3: find kind of a niche opportunity within the TPUs, and again,
Speaker 3: can they use that to really bolster and fill out
Speaker 3: a suite of offerings, Because when you think about the
Speaker 3: debate we've been having for even just large language models
Speaker 3: in some of those frontier labs. Anthropics obviously well ahead
Speaker 3: of Opening Eye these days, but Google its zone offering,
Speaker 3: Microsoft has its own offering. That's another corner of the
Speaker 3: market that I think people will be interested in what
Speaker 3: management says on the call.
Speaker 1: All right, and after those two major companies report Wednesday,
Speaker 1: we're going to hear from Intel on Thursday. How are
Speaker 1: we thinking the chip maker is going to fare after
Speaker 1: what we heard last week from IBM about missing out
Speaker 1: on the spending shift.
Speaker 3: Not great. I think es vibes are off, vibes are off.
Speaker 3: The one thing I want to call out is that
Speaker 3: Taiwan Semi reported earnings that if you talk to most investors,
Speaker 3: look pretty darn good, and the stock traded down. So
Speaker 3: how high are expectations for the entire semiconductor ecosystem. You
Speaker 3: have to keep in mind last twelve months, Intel's up
Speaker 3: three hundred and forty three hundred and fifty percent. There's
Speaker 3: a high bar to clear. Yes, there's the partnerships and
Speaker 3: kind of the optimism around its relationship with the US government,
Speaker 3: but we are hitting a point where we've seen so
Speaker 3: much volatility in these semiconductor names that I don't think
Speaker 3: a beaten raise is enough to drive the stock hire
Speaker 3: And the big question will be a what does the
Speaker 3: buyside really want to see? And be will they look
Speaker 3: at it and say, all right, great, Maybe I want
Speaker 3: to take some chips off the table, just because if
Speaker 3: you use Taiwan Semi as an example to look at,
Speaker 3: you can have a pretty dark good quarter, but you
Speaker 3: might be priced to professor.
Speaker 1: So are you thinking then that it's almost a foregone
Speaker 1: conclusion that we could see some profit taking following these
Speaker 1: earnings given what you've just been talking about, or is
Speaker 1: there a chance that we could see a little bit
Speaker 1: of a pop to the upside.
Speaker 3: You would have to see a pretty dark good quarter.
Speaker 3: They've been up the last three times after earnings beat expectations,
Speaker 3: but again that was before a lot of this latest
Speaker 3: rally has taken place, and before the company as it
Speaker 3: is now is a half a trillion dollar semiconductor baker.
Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with
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Speaker 3: Mm hmm