1 00:00:02,520 --> 00:00:07,360 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,440 --> 00:00:18,239 Speaker 1: Let's take a look at some stocks on the move today. 5 00:00:18,280 --> 00:00:21,680 Speaker 1: I'm Nathan Hager, joined by Bloomberg Stan Curtis. Starting with 6 00:00:21,720 --> 00:00:24,959 Speaker 1: one of the biggest movers on the upside after big 7 00:00:25,000 --> 00:00:28,000 Speaker 1: tech earnings, That of course would be Microsoft. 8 00:00:28,080 --> 00:00:31,200 Speaker 3: Good morning, Dan, Good morning. That's right. Microsoft is up 9 00:00:31,280 --> 00:00:33,879 Speaker 3: nine percent in the pre market, and that's after it 10 00:00:33,960 --> 00:00:36,920 Speaker 3: reported earnings and the capex side, it was a seventy 11 00:00:36,960 --> 00:00:39,880 Speaker 3: percent increase is forty one billion dollars, but Wall Street 12 00:00:39,920 --> 00:00:42,919 Speaker 3: was expecting forty two billion dollars. So capex came in 13 00:00:42,960 --> 00:00:45,519 Speaker 3: a little bit lighter than expected, and that was mixed 14 00:00:45,600 --> 00:00:48,159 Speaker 3: with a revenue beat. So the company is spending a 15 00:00:48,200 --> 00:00:50,480 Speaker 3: little bit less on the AI build out and it's 16 00:00:50,520 --> 00:00:53,840 Speaker 3: posting higher revenue than expected, and that is reflecting in 17 00:00:53,880 --> 00:00:56,560 Speaker 3: the stock. Of note was a zor growth, which is 18 00:00:57,160 --> 00:00:59,360 Speaker 3: what we're watching when we're talking about the AI trade. 19 00:00:59,480 --> 00:01:01,680 Speaker 3: That was up forty three percent on the quarter, better 20 00:01:01,680 --> 00:01:05,319 Speaker 3: than estimates. Annual revenue for the group topped one hundred billion, 21 00:01:05,360 --> 00:01:08,160 Speaker 3: dollars for the first time ever, the unit seeing efficiency 22 00:01:08,160 --> 00:01:12,280 Speaker 3: gains in faster capacity delivery with demand still exceeding supply. 23 00:01:12,400 --> 00:01:15,480 Speaker 3: And then Microsoft three sixty five Copilot, another AI tool. 24 00:01:16,720 --> 00:01:20,559 Speaker 3: Paid seats doubled sequentially to over thirty million dollars. User 25 00:01:20,640 --> 00:01:23,640 Speaker 3: satisfaction scores also doubled. So this is looking like a 26 00:01:23,680 --> 00:01:25,640 Speaker 3: big AI win in the pre market, and it. 27 00:01:25,600 --> 00:01:28,440 Speaker 1: Seems like almost the exact opposite side of the coin 28 00:01:28,520 --> 00:01:31,319 Speaker 1: dan when it comes to what we heard from Meta Platforms. 29 00:01:31,840 --> 00:01:34,120 Speaker 3: That's it. So Meta is down almost nine percent in 30 00:01:34,160 --> 00:01:37,000 Speaker 3: the pre market, and that's as it reported the lowest 31 00:01:37,000 --> 00:01:39,960 Speaker 3: free cash flow in years, a sign of ballooning expenses 32 00:01:40,000 --> 00:01:42,920 Speaker 3: eating into the AI bets and it's not quite seeing 33 00:01:42,959 --> 00:01:46,200 Speaker 3: the monetization yet. Third quarter revenue is seen coming in 34 00:01:46,280 --> 00:01:49,320 Speaker 3: sixty one to sixty four billion dollars. That midpoint is 35 00:01:49,400 --> 00:01:53,120 Speaker 3: softer than estimates, and the full year capex was raised. 36 00:01:53,480 --> 00:01:56,720 Speaker 3: The range was raised one hundred and thirty to one 37 00:01:56,800 --> 00:01:59,000 Speaker 3: hundred and forty five billion dollars, So the bottom end 38 00:01:59,040 --> 00:02:00,960 Speaker 3: coming up. They're saying, we're not going to be spending 39 00:02:01,000 --> 00:02:02,880 Speaker 3: on the lower side of what we expected. We'll be 40 00:02:02,920 --> 00:02:05,680 Speaker 3: spending at least on the higher end of what we 41 00:02:05,760 --> 00:02:09,600 Speaker 3: projected before and full your expenses also raised as well. 42 00:02:09,840 --> 00:02:11,280 Speaker 3: That hitting the shares this morning. 43 00:02:11,400 --> 00:02:14,120 Speaker 1: Now, Meta and Microsoft aren't the only big tech firms 44 00:02:14,120 --> 00:02:16,120 Speaker 1: that we heard from when it comes to earnings. We 45 00:02:16,280 --> 00:02:18,160 Speaker 1: also got results from ARM. 46 00:02:18,320 --> 00:02:18,880 Speaker 2: How they do. 47 00:02:19,440 --> 00:02:23,040 Speaker 3: That's right, So the chip designer is projecting slow growth 48 00:02:23,080 --> 00:02:25,880 Speaker 3: in royalties, which accounts for most of its sales. That 49 00:02:25,960 --> 00:02:28,480 Speaker 3: has the stock down four percent in the pre market. 50 00:02:28,639 --> 00:02:31,400 Speaker 3: The company sees mid to low teens growth instead of 51 00:02:31,440 --> 00:02:34,840 Speaker 3: the previous outlook of twenty percent growth, and it's noting 52 00:02:34,880 --> 00:02:37,600 Speaker 3: weakness on the smartphone side. This echoes what we heard 53 00:02:37,600 --> 00:02:41,480 Speaker 3: from Callcom on Tuesday, which is also struggling with phone demand, 54 00:02:41,600 --> 00:02:44,160 Speaker 3: especially as the prices rise. For that, we've seen you know, 55 00:02:44,240 --> 00:02:46,960 Speaker 3: Apple raising prices on its consumer products, so the phone 56 00:02:46,960 --> 00:02:49,720 Speaker 3: industry really getting hit by that. Arm's been looking to 57 00:02:49,760 --> 00:02:52,840 Speaker 3: offset that slow down by expanding into data center chips, 58 00:02:53,080 --> 00:02:55,839 Speaker 3: but the guidance for the quarter was around one point 59 00:02:55,919 --> 00:02:58,560 Speaker 3: three eight billion dollars, just around targets and not enough 60 00:02:58,600 --> 00:02:59,799 Speaker 3: to help lift the stocks today. 61 00:03:00,120 --> 00:03:05,040 Speaker 1: Okay, we also got some earnings from some other familiar names, 62 00:03:05,480 --> 00:03:08,280 Speaker 1: including Starbucks. I'm going to go ahead and say it 63 00:03:08,280 --> 00:03:11,440 Speaker 1: looks like they're getting a bit of a jolt when 64 00:03:11,480 --> 00:03:14,680 Speaker 1: it comes to the stock move this morning, and. 65 00:03:14,720 --> 00:03:18,760 Speaker 3: Yeah, it's a strong cup of coffee this morning, Rope. Yeah. 66 00:03:18,800 --> 00:03:20,880 Speaker 3: I mean, hey, I'm on my fifth cup, so I 67 00:03:20,960 --> 00:03:24,960 Speaker 3: can't I can't blame that. All. That's it. Management raised 68 00:03:25,000 --> 00:03:28,120 Speaker 3: full your guidance after beating physical third quarter top and 69 00:03:28,160 --> 00:03:32,160 Speaker 3: bottom lines. It's also forecasting comparable sales growth of at 70 00:03:32,240 --> 00:03:34,720 Speaker 3: least six and a half percent higher, which is higher 71 00:03:34,760 --> 00:03:37,480 Speaker 3: than the street target, which was under five percent, sign 72 00:03:37,560 --> 00:03:40,160 Speaker 3: of the turnaround really taking hold after the company suffered 73 00:03:40,200 --> 00:03:42,760 Speaker 3: from six straight quarters of same store sales decline, which 74 00:03:42,800 --> 00:03:45,800 Speaker 3: did end last year. But we're seeing a continuation on 75 00:03:45,840 --> 00:03:48,760 Speaker 3: that same store sales growth and it's been down to 76 00:03:48,800 --> 00:03:51,360 Speaker 3: the revamp of a menu. It's been replacing products that 77 00:03:51,400 --> 00:03:54,360 Speaker 3: weren't selling well, and it's bringing higher margin drinks like 78 00:03:54,640 --> 00:03:57,520 Speaker 3: fruity refreshers, which have been really taking off in the 79 00:03:57,560 --> 00:04:00,400 Speaker 3: country this year. It also added tiers to its loyalty 80 00:04:00,440 --> 00:04:05,400 Speaker 3: program and says the rewards are offering our exceeding expectations. 81 00:04:05,400 --> 00:04:07,880 Speaker 3: That has the stock up seven percent this morning. 82 00:04:09,040 --> 00:04:13,080 Speaker 2: This stock Movers report from Bloomberg Radio. Check back with 83 00:04:13,160 --> 00:04:15,720 Speaker 2: us throughout the day for the latest roundup of companies 84 00:04:15,800 --> 00:04:18,880 Speaker 2: making news on Wall Street, and for the latest market 85 00:04:18,920 --> 00:04:23,359 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. 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