WEBVTT - Closing Bell: Amazon Climbs on Earnings, Roku and Zillow Lower

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

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<v Speaker 2>This is the closing bell on this stock movers report

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<v Speaker 2>the company's making moves at the close of US trading

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<v Speaker 2>with Carol Masser, Tim Stenebeck, Romain Bostik, and Scarlet Fool.

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<v Speaker 3>All right, I'm going to go back to the S

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<v Speaker 3>and P. Five hundred as I normally do. Two hundred

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<v Speaker 3>and thirty five names in that index. Folks gaining ground

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<v Speaker 3>on this Thursday, two hundred and sixty six to the downside.

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<v Speaker 3>Three Katie unchanged.

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<v Speaker 4>All right, you take a look at the sectors not

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<v Speaker 4>looking too good here, only three sectors in the green.

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<v Speaker 4>You can see a lot of pain coming through the

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<v Speaker 4>tech sector on this day in terms of what did well.

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<v Speaker 4>Real estate, which is a little bit curious of about

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<v Speaker 4>seven tens of percent, Financials and healthcare, some of your

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<v Speaker 4>lone outperformers on a day where really it seems like

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<v Speaker 4>a lot of the market wanted to fall.

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<v Speaker 3>All right, let's get to some of the individual gainers.

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<v Speaker 3>A lot of red there on that screen. But Google

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<v Speaker 3>finishing off it's best levels of the session, still good

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<v Speaker 3>for a gain of two point five percent, and we

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<v Speaker 3>got Amazon out.

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<v Speaker 1>Amazon earning is crossing the wire right now. In the

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<v Speaker 1>third quarter, we're going to start with Amazon Web Services

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<v Speaker 1>Net sales for that division thirty three billion dollars.

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<v Speaker 2>That's light.

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<v Speaker 1>The street was looking for thirty two point four billion dollars,

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<v Speaker 1>so a miss for Amazon Web Services. As far as

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<v Speaker 1>total sales for the company, that came in at one

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<v Speaker 1>hundred and eighty point two billion dollars. That is a beat.

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<v Speaker 1>The street was looking for one hundred and seventy seven.

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<v Speaker 1>We'll just round it up to one hundred and seventy

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<v Speaker 1>eight billion dollars EPs side a dollar ninety five, the

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<v Speaker 1>street was looking for a dollar fifty eight. An operating

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<v Speaker 1>margin coming in light at nine point seven percent. The

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<v Speaker 1>street was looking for eleven point one. So just to

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<v Speaker 1>round up here, operating margin is amiss for the quarter,

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<v Speaker 1>and Amazon Web Services Net sales are amiss, though top

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<v Speaker 1>line sales as well as the full bottom line adjusted

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<v Speaker 1>EPs are a beat. You see the shares there moving

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<v Speaker 1>up about eight percent.

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<v Speaker 4>Yeah. Absolutely, And you take a look at the press

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<v Speaker 4>release and each president and CEO of Amazon talking up

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<v Speaker 4>the strong momentum and growth across Amazon is AI drives

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<v Speaker 4>meaningful improvements in every corner of our business. Some comments

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<v Speaker 4>on AWS two, Andy Jassey saying that AWS is growing

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<v Speaker 4>at a pace we haven't seen since twenty twenty two,

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<v Speaker 4>reaccelerating to twenty point two percent year over year, and

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<v Speaker 4>you can see maybe some of that being expressed in

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<v Speaker 4>the shares right now.

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<v Speaker 1>And we got a forecast coming out now, guys here

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<v Speaker 1>on the fourth quarter net sales, the company saying that

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<v Speaker 1>it's going to see a range of about two hundred

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<v Speaker 1>and six to two hundred and thirteen billion. The street

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<v Speaker 1>was looking for roughly about two oh weeight and change,

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<v Speaker 1>so basically guiding around what the street had already sort

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<v Speaker 1>of priced in. As far as operating income for the

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<v Speaker 1>current quarter, the company says expect twenty one to twenty

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<v Speaker 1>six billion, so a wide range. The street was looking

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<v Speaker 1>for something in the middle of that of about twenty

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<v Speaker 1>three point eight.

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<v Speaker 5>Carol so Katie looked at the commentary for Andy Jassey

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<v Speaker 5>on AWS on the Storoare side of things is what

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<v Speaker 5>I'm looking at right now. Andy Jasse calling out expanding

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<v Speaker 5>same day delivery of perishable grocery. They've expanded that to

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<v Speaker 5>over twenty three hundred communities. They'll do that by the

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<v Speaker 5>end of the year. They plan a double number of

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<v Speaker 5>rural communities with access to Amazon's same day and next

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<v Speaker 5>day delivery. Still looking for any commentary on the consumer

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<v Speaker 5>and how they're feeling. And look, we're going to know

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<v Speaker 5>we're gonna get a lot of questions about those layoffs

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<v Speaker 5>that were that we learned about earlier this week, as well.

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<v Speaker 3>Aws growing at a pace we haven't seen since twenty

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<v Speaker 3>twenty two. There's some commentary from Andy Jasse over to Amazon. Man,

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<v Speaker 3>that's stock. Amazon is up ten percent here in the aftermarket,

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<v Speaker 3>So investors liking what they got here, Katie.

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<v Speaker 4>Yeah, absolutely significant for Amazon. You consider that relative to

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<v Speaker 4>its own history, it's the cheapest among the big tech

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<v Speaker 4>names going into that print. But let's take a look

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<v Speaker 4>at Roku shares coming through full year net revenue forecasts

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<v Speaker 4>meeting estimates here. They actually they boost that full year

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<v Speaker 4>net revenue forecast. They met their estimates on the look ahead,

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<v Speaker 4>but you can see that their shares are falling ten

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<v Speaker 4>percent postmarket right now. They see full year net revenue

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<v Speaker 4>four point six y nine billion dollars. They had seen

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<v Speaker 4>four point sixty five billion dollars. The estimate had been

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<v Speaker 4>for four point sixty six billion dollars. But stilly, you

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<v Speaker 4>can see the shares really taking whack in the after

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<v Speaker 4>hours now down fourteen percent.

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<v Speaker 1>Yeah, I just want to point out too, just real

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<v Speaker 1>quickly here on Gilliad. Gilliad actually out with this results

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<v Speaker 1>as well. It looks like a sort of softness on

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<v Speaker 1>a couple of key measures. But let's go back to

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<v Speaker 1>Amazon here, because the shares continued to get a strong

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<v Speaker 1>bid here. The company now re saying that it can

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<v Speaker 1>reaccelerate AWS growth to twenty point two percent year over year.

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<v Speaker 1>That we should point out in the most recent quarter

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<v Speaker 1>growth in that unit was already about twenty percent, So

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<v Speaker 1>we'll try to get you some more details on that.

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<v Speaker 1>The company also talking about the costs for some of

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<v Speaker 1>the layoffs, saying that it is estimated that there were

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<v Speaker 1>about one point eight billion dollars in severance costs in

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<v Speaker 1>the most recent quarter, as well as two point five

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<v Speaker 1>billion dollars in costs related to a legal sediment settlement

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<v Speaker 1>with the Federal Trade Commission.

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<v Speaker 5>Here that was the most recent quarter, so that doesn't

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<v Speaker 5>account for what happened exactly the current quarter. I'm getting

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<v Speaker 5>more numbers here from from Amazon worth going over some

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<v Speaker 5>of these they're worth repeating. Net sales for the third

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<v Speaker 5>quarter up thirteen percent year over year to one hundred

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<v Speaker 5>and eighty point seventeen billion. Online stores net sales up

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<v Speaker 5>nine point eight percent to sixty seven point four to

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<v Speaker 5>one billion. The company is saying that subscription service net

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<v Speaker 5>sales excluding FX up ten percent. AWS net sales excluding

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<v Speaker 5>FX up twenty percent. Earnings per share one dollar and

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<v Speaker 5>ninety five cents versus one dollar and sixty eight cents

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<v Speaker 5>quarter over quarter. Operating income coming in seventeen point four

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<v Speaker 5>to two billion dollars versus seventeen point four to one

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<v Speaker 5>billion dollars year over year the estimate nineteen point seven

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<v Speaker 5>two billion dollars.

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<v Speaker 3>All right, Zillo dropping in the after market. Let's go

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<v Speaker 3>to the numbers. Third quarter revenue, folks, that's a beat.

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<v Speaker 3>Six hundred and seventy six million dollars. The estimate on

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<v Speaker 3>the street was six hundred and seventy point nine million.

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<v Speaker 3>Third quarter just to dps two pennies better forty four

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<v Speaker 3>cents versus an estimate on the street of forty two cents.

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<v Speaker 3>The fourth quarter outlook this is always key company. Zillo

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<v Speaker 3>seeing fourth quarter revenue six hundred forty five million to

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<v Speaker 3>six hundred and fifty five million, so that too is

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<v Speaker 3>above the street estimate of six hundred and forty four

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<v Speaker 3>point three million, and mortgage's revenue fifty three million. That's

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<v Speaker 3>above the estimate of fifty point two but nonetheless, Zillow

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<v Speaker 3>down about one percent here in the aftermarket.

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<v Speaker 1>I just want to we've been talking about the rapid

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<v Speaker 1>rise and shares an Amazon. Amazon not the best performer

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<v Speaker 1>in the after hour straight It is a Lassian ticker.

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<v Speaker 1>Team shares up twelve percent in the most recent quarter,

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<v Speaker 1>its fiscal first quarter, the company came in with a

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<v Speaker 1>big beat on the bottom line, a dollar four share

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<v Speaker 1>for EPs. The street was looking for eighty four cents.

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<v Speaker 1>Cloud revenue coming in above estimates too, at about nine

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<v Speaker 1>hundred and ninety eight million dollars in the company guiding

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<v Speaker 1>for its fiscal second quarter the current quarter saying that

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<v Speaker 1>revenue overall will be about one point five four billion

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<v Speaker 1>dollars above street estimates, and it sees cloud revenue in

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<v Speaker 1>the current quarter year over year rising twenty three percent.

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<v Speaker 5>Okay, I'm looking at coinbase shares hire by just about

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<v Speaker 5>one percent in the after hours. The third quarter total

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<v Speaker 5>revenue coming in above estimates ever so slightly one point

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<v Speaker 5>eight seven billion versus estimates of one point eight billion.

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<v Speaker 5>Coin based third quarter trading volume coming in just shy

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<v Speaker 5>of estimates. A two hundred ninety five billion dollars third

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<v Speaker 5>quarter subscription and services revenue coming in above estimates at

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<v Speaker 5>seven hundred and forty seven million dollars. Third quarter transaction

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<v Speaker 5>revenue coming above estimates at one point h five billion dollars.

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<v Speaker 5>Shares now moving too much in the after hours, bouncing

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<v Speaker 5>between gains and losses, down just about one tenth of

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<v Speaker 5>one percent.

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<v Speaker 4>Interesting the trading volume missed on expectations for coinbase. You

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<v Speaker 4>think about all the volatility that we've seen in bitcoin

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<v Speaker 4>and crypto overall, but not exactly translating into big volumes

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<v Speaker 4>for coinbas at least relative to expectations. Let's talk about

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<v Speaker 4>Reddit though, getting those numbers out their third quarter daily

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<v Speaker 4>active users, that figure actually beat estimates, coming in at

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<v Speaker 4>one hundred and sixteen million. The estimate had been for

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<v Speaker 4>just over one hundred and fourteen million. You can see

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<v Speaker 4>the reaction in shares ray Now, then you think about

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<v Speaker 4>the third quarter net income that measure big beat there,

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<v Speaker 4>one hundred and one hundred and sixty two point seven

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<v Speaker 4>million dollars. The estimate had been for one hundred and

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<v Speaker 4>four million dollars. So a beat for Reddit when it

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<v Speaker 4>comes of course to Daly active users, a very closely

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<v Speaker 4>washed metric. And also their net income shares up eleven

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<v Speaker 4>percent in the after hours trade right now.

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<v Speaker 3>All right, so a movement by Twilio as well, the

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<v Speaker 3>cloud computing platform. This company talking about the outlook seeing

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<v Speaker 3>fiscal you're adjusted operating income of nine hundred million to

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<v Speaker 3>nine hundred and ten million, that is above what the

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<v Speaker 3>street is looking for. The estimate is eight hundred and

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<v Speaker 3>sixty seven point nine million. Also a fiscal year organic

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<v Speaker 3>revenue they're looking for up eleven point three percent to

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<v Speaker 3>up eleven point five percent. They had seen nine percent

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<v Speaker 3>to ten percent growth. So again we're seeing that one

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<v Speaker 3>pop remain almost six percent higher here in the aftermarket.

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<v Speaker 1>And as we look at some of the big gainers

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<v Speaker 1>in the after hours trade, keep an eye on Floor

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<v Speaker 1>and decre the Home Floor Company, if you will, saying

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<v Speaker 1>that it's going to elevate its president to CEO, Bradley Paulson,

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<v Speaker 1>who had been president at the company for some time.

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<v Speaker 1>We'll be taking over as CEO for Thomas Taylor, who

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<v Speaker 1>will be elevated to the chairman role here though, shares

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<v Speaker 1>up seven percent.

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<v Speaker 5>Hey, I just want to go back.

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<v Speaker 3>I'm sorry, remain I just want to go back to

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<v Speaker 3>Amazon if I may, which has been popping here in

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<v Speaker 3>the aftermarket. One of the things that investors were looking

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<v Speaker 3>for is to their investments in Anthropic, a key rival

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<v Speaker 3>to open Ai. Third quarter twenty twenty five net income

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<v Speaker 3>includes pre tax gains of nine and a half billion,

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<v Speaker 3>included in non operating income from their investments in Anthropics.

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<v Speaker 3>So again, this is something that is certainly key, and

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<v Speaker 3>I'll probably come up on that call.

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<v Speaker 2>This stock mover's report from Bloomberg Radio. Check back with

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