WEBVTT - Earnings Roundup: Tesla Plans Big xAI Investment, Meta Soars, Microsoft Drops

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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 1>I'm Carol Massler along with Tim Steneviek. Let's get you

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<v Speaker 1>some stocks on the move, and we've got some big

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<v Speaker 1>movers in the aftermarket. Bloomberg News Equities reporter Billy Lipschetz

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<v Speaker 1>in the house.

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<v Speaker 2>We've got to talk Tesla.

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<v Speaker 1>Yeah, gotta talk Tesla. The stock right now up just

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<v Speaker 1>under three percent. The Big News granted fourth quarter profit

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<v Speaker 1>better than expected despite lower car sales. Investing about two

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<v Speaker 1>billion dollars in Elon Musk's Xai startup, one of the

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<v Speaker 1>competitors with open Ai and Anthropic that does seem to

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<v Speaker 1>be standing out to investors just looking through some of

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<v Speaker 1>the byside folks who put out notes really calling out, Okay,

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<v Speaker 1>if you're buying into the vision that Tesla is more

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<v Speaker 1>than a car company, they're getting into robots. What does

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<v Speaker 1>that mean for Xai. Seemingly this is a step in

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<v Speaker 1>the right direction, at least according to those investors, despite

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<v Speaker 1>the fact that under the hood kind of met wait wait.

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<v Speaker 1>Investing in Elon's AI company investing in his own company.

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<v Speaker 1>Now that happened. It's just it's I kind of get it.

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<v Speaker 1>But it's amazing that he knows people that enthusias like

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<v Speaker 1>he knows well. I mean, you think back to sun City, right,

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<v Speaker 1>they acquired that company, and it was like, okay, solar City. Yeah, sorry,

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<v Speaker 1>coolar City. So it's like, okay, how deep does this go?

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<v Speaker 1>And if you're an investor who's been buying the Tesla

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<v Speaker 1>vision for how many years, all he's done is make

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<v Speaker 1>you money, So it's easy to say, yeah, okay, well

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<v Speaker 1>we'll see something. Yeah.

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<v Speaker 2>Check out that Walter Isaacson bio of Elon Musk for

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<v Speaker 2>the sort of story around the Solar City acquisition.

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<v Speaker 1>Not everybody was completely happy with that. Maybe we'll call

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<v Speaker 1>him a visionary where he goes I know, I know,

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<v Speaker 1>we're racing the clocket. We gotta go. Okay, So meta

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<v Speaker 1>platforms Meta platforms right now up nine percent, was up

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<v Speaker 1>more than ten percent, beating expectation. Zuck just basically talking

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<v Speaker 1>up AI and the possibility for them to drive in

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<v Speaker 1>the long term. The big thing that does stand out is, Okay, well,

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<v Speaker 1>twenty two six spending is going to be more than

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<v Speaker 1>what Wall Street looked for. But he's actually calling potentially

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<v Speaker 1>for the peak spending at least in some units. So

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<v Speaker 1>it does seem like investors are lapping that up. Again,

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<v Speaker 1>when you're looking at a company TICKERMTA that's one point

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<v Speaker 1>seven billion dollars and up ten percent post market, there's

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<v Speaker 1>got to be something for investors to like, and it

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<v Speaker 1>does seem like leaning into advertising, expanding their opportunities within engineering,

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<v Speaker 1>and kind of getting better with AI. All right, Microsoft

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<v Speaker 1>down almost five percent ticker MSFT. The big issues are cloud,

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<v Speaker 1>so cloud sales growth slowing more than expected. They're ramping

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<v Speaker 1>up their spending in AI, so getting hit from both ends.

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<v Speaker 1>If your Meta, you're spending up on AI. But at

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<v Speaker 1>least there's a vision for how that kind of pays

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<v Speaker 1>out investors in the long term when your cloud computing

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<v Speaker 1>is that your cloud sales are slowing, not so much

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<v Speaker 1>for Meta or not so much for Microsoft Service.

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