WEBVTT - Closing Bell: Vertex Rises, Centene Sinks, Oracle Posts Strong Earnings 

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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 the stock mover's 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 Stenovak, Romain Bostik, and Katie Greifel.

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

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<v Speaker 4>Vertex Pharmaceuticals closing out more than eight percent, best day

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<v Speaker 4>since December of twenty twenty three, top performer in both

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<v Speaker 4>the S and P and Nasdaq one hundred.

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<v Speaker 3>The biotech company.

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<v Speaker 4>Said it's drug to treat a kidney disorder met its

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<v Speaker 4>goal in a late stage trial, providing a boost to

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<v Speaker 4>its strategy a moving beyond cystic fibrosis treatments. RBC Capital

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<v Speaker 4>Markets weighing in and said the positive data showed exactly

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<v Speaker 4>what was necessary to confirm the drug's high potential and

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<v Speaker 4>gets the company pass their key unknown for twenty twenty six.

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<v Speaker 4>He estimates the drug could eventually generate about five billion

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<v Speaker 4>dollars in sales if it can win approval in multiple conditions.

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<v Speaker 4>Vienna a top performer two in the S and P

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<v Speaker 4>five hundred. That one gaining ground as well, up about

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<v Speaker 4>six percent. It's a forty eight billion dollars market cap

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<v Speaker 4>communications equipment company. A couple things that play. Analysts raising

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<v Speaker 4>price targets for this one since the company reported earnings

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<v Speaker 4>last week on March fifth, twelve, analysts raising price targets

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<v Speaker 4>by an average of twenty four percent. Need a analyst

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<v Speaker 4>Ryan Coons saying several networking and optical technology companies position

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<v Speaker 4>to benefit from rising hyperscale cloud spending as AI infrastructure

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<v Speaker 4>continues to expand, and Heed did identify Sienna along with

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<v Speaker 4>a few other companies as a result. One more for you,

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<v Speaker 4>Rivian rallying td cowen coming out upgrading the automaker to

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<v Speaker 4>buy from hold. The analyst there positive on the stocks

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<v Speaker 4>risk profile going into the launch of its R two

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<v Speaker 4>mid size suv that stock up more than four percent.

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<v Speaker 4>Rivian that is price target to twenty from seventeen. Stock

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<v Speaker 4>still down about fourteen percent year to day. Nearly sixteen

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<v Speaker 4>percent of the.

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<v Speaker 3>Float is short.

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<v Speaker 4>And keep in mind this one is still down ninety percent.

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<v Speaker 4>It's a high back in November of twenty two one,

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<v Speaker 4>but tdcow and liking it investors too, pushing it up

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<v Speaker 4>about four percent today.

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<v Speaker 5>Guys, Well, let's take into some of the decliners on

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<v Speaker 5>the day, we're looking at shares of Boeing down more

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<v Speaker 5>than three percent at the closing bell. This is the

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<v Speaker 5>biggest drop since November for the stock. This is after

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<v Speaker 5>a Boeing said that a wiring flaw found on its

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<v Speaker 5>seven thirty seven Max will delay some deliveries of the jet,

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<v Speaker 5>this of course setting shares lower at the closing bell.

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<v Speaker 5>The company said it's overall delivery target of roughly five

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<v Speaker 5>hundred of the seven thirty seven jets for the year

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<v Speaker 5>remains unchanged despite the quality lapse. But clearly the street

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<v Speaker 5>is not really liking this news. We know that the

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<v Speaker 5>stock did rebound in twenty twenty five year to date

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<v Speaker 5>after having a pretty dismal twenty twenty four down about

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<v Speaker 5>thirty two percent, But if we look at the activity

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<v Speaker 5>for this year alone, it's up just about one percent.

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<v Speaker 5>So it seems as though Boeing is really trying to

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<v Speaker 5>buy to get a lot of its investors back on

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<v Speaker 5>board here. Moving from there, let's go to West Pharmaceutical Services.

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<v Speaker 5>This company has struggled this year. Today we're seeing the

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<v Speaker 5>stock down more than five percent for its worst day

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<v Speaker 5>since February of twenty twenty five. The stock is down

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<v Speaker 5>about fifteen percent this year, but today we're seeing it

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<v Speaker 5>lower after the company said that long term CEO, Eric Green,

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<v Speaker 5>plans to retire. This marking the second recent exec change

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<v Speaker 5>after announcing the hiring of a new CFO last year.

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<v Speaker 5>So some of those management changes weighing on sentiment in

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<v Speaker 5>the trade. Lastly, let's wrap things up with centeen. This

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<v Speaker 5>is seeing its worst day since July of twenty twenty five.

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<v Speaker 5>This company's about eighteen billion dollars in marketcap, a healthcare

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<v Speaker 5>managed care company based in Saint Louis. We did see

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<v Speaker 5>that shares we're seeking the companies that it expects enrollment

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<v Speaker 5>in the ACA marketplace to decline by about thirty five

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<v Speaker 5>percent or more across the industry after some federal ACA

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<v Speaker 5>subsidies did expire, So not great news for the company.

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<v Speaker 5>Shares down about sixteen percent on the day.

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<v Speaker 1>All right, let's take a quick look at yields here.

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<v Speaker 1>We did see a lot of volatility in that space,

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<v Speaker 1>but the net effect is yields higher on the day.

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<v Speaker 1>Your tenure yield for a six day in the past

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<v Speaker 1>seven up about five basis points. A two year yield

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<v Speaker 1>up for a fifth day in the past seven up

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<v Speaker 1>about five basis points, and the longer end of the

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<v Speaker 1>curve you don't have up there. Oh there it is

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<v Speaker 1>a thirty year yield is saw the most activity there

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<v Speaker 1>in terms of the selloff, with pushing yields higher by

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<v Speaker 1>about seven basis points.

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<v Speaker 4>All right, of course, we are waiting Oracles earning, so

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<v Speaker 4>just kind of glued to our Bloomberg and we'll bring

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<v Speaker 4>you those results as soon as they cross.

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<v Speaker 3>There we go, stocks moving.

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<v Speaker 1>Up, oracleture, Oracle earnings out crossing the wire right now.

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<v Speaker 1>Three Q adjusted revenue does appear to have beaten estimates.

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<v Speaker 1>The company is saying that it's all twenty two percent

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<v Speaker 1>growth to about seventeen point one nine billion dollars. The

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<v Speaker 1>street was looking for about sixteen point eight nine billion

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<v Speaker 1>dollars on a constant currency basis, up about eighteen percent.

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<v Speaker 1>Cloud revenue up forty four percent to eight point nine

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<v Speaker 1>billion dollars, in cloud application revenue up eleven percent to

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<v Speaker 1>four billion dollars, roughly in line with estimate. Software revenue

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<v Speaker 1>also higher. Here off of those numbers, and still looking

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<v Speaker 1>here and here is your revenue guidance. The company says

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<v Speaker 1>that for its total revenue guidance is now being boosted

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<v Speaker 1>to about ninety billion dollars. I need to take a

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<v Speaker 1>closer look at that comparison here, and we need to

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<v Speaker 1>dive in a little bit deeper into that CAPEX number,

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<v Speaker 1>which is going to be very deeper into the release.

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<v Speaker 6>Yeah, still looking for CAPEX, still looking for their cash

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<v Speaker 6>flow as well, that was negative to the tune about

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<v Speaker 6>ten billion dollars last quarter. You can see shares though,

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<v Speaker 6>popping right now, higher by about four percent. But Carol,

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<v Speaker 6>it's important to know how low the bar was heading

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<v Speaker 6>into these earnings. Their last high was on September tenth,

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<v Speaker 6>and through today's close, down more than fifty percent since then.

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<v Speaker 3>Yeah, interesting to see.

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<v Speaker 4>I was just kind of going through the press relief

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<v Speaker 4>looking for a little bit more in terms of capital expenditures.

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<v Speaker 4>But what's interesting is you are seeing this stock up

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<v Speaker 4>about four percent here in the aftermarket, So investors at

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<v Speaker 4>least initially liking what they got here, Nora.

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<v Speaker 5>Right, And it seems as though, you know, Oracle needed

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<v Speaker 5>this win. As Katie was saying earlier, the bar was

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<v Speaker 5>pretty low, but I mean investors will really be focused

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<v Speaker 5>as I was hearing from some of my sources on

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<v Speaker 5>the cloud business and not specifically how quickly Oracle could

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<v Speaker 5>turn major bookings from customers like open Ai into actual revenue.

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<v Speaker 1>Yeah, and there was a lot of discussion here coming

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<v Speaker 1>into this. I mean, remember we had seen reports about Bloomberg,

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<v Speaker 1>about the company scaling back in terms of headcounts, scaling

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<v Speaker 1>back in terms of some of its spending plans with

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<v Speaker 1>the guards to that stargate center down there in Texas,

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<v Speaker 1>and the idea they're coming into this report, investors really

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<v Speaker 1>wanted to see what that cappex number could be or

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<v Speaker 1>would be, and whether they would raise it or maybe

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<v Speaker 1>even for tailing. We are now starting to get a

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<v Speaker 1>little bit of a trickle here about the forecast. The

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<v Speaker 1>company is saying that were the current quarter, the fiscal

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<v Speaker 1>fourth quarter, it expects revenue to grow from eighteen percent

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<v Speaker 1>to twenty percent on a constant currency basis. The company

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<v Speaker 1>they're guiding, so I guess slightly higher than I guess

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<v Speaker 1>what the street was looking for.

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<v Speaker 6>Yeah. Absolutely, that revenue guidance too again up to ninety

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<v Speaker 6>billion dollars, certainly catching the attention of the after hours trade.

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<v Speaker 6>It's going to be interesting too to see how this

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<v Speaker 6>is reflected when it comes to the debt markets. Obviously

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<v Speaker 6>very much in focus when it comes to heading into

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<v Speaker 6>this report. You consider that when it comes to their

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<v Speaker 6>five year CDs at the highest level since January two

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<v Speaker 6>thousand and nine.

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<v Speaker 1>All right, so I just want to go back here

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<v Speaker 1>to those numbers they are just diving through their release,

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<v Speaker 1>the company says if for the full fiscal year, which

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<v Speaker 1>basically ends this quarter, they're expecting capital expenditures of about

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<v Speaker 1>fifty billion dollars, that's unchanged from its previous guidance for

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<v Speaker 1>the fiscal twenty twenty seven. The company says it is

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<v Speaker 1>raising its total revenue guidance to that ninety billion dollar number,

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<v Speaker 1>but it is not, at least not in the press release,

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<v Speaker 1>providing a capex figure, So maybe we have to wait

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<v Speaker 1>for that until the conference call.

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<v Speaker 4>Yeah, it sounds like that's going to be something that's

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<v Speaker 4>certainly going to be asked about. But again, we continue

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<v Speaker 4>to see this stock now up about seven percent here

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<v Speaker 4>in the aftermarket, so we're definitely seeing a pop to

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<v Speaker 4>the pside.

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