1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:16,680 Speaker 2: the stock market. Harnessing the power of Bloomberg Data. Let's 4 00:00:16,680 --> 00:00:17,960 Speaker 2: take a look at some of the stocks on the 5 00:00:18,000 --> 00:00:22,880 Speaker 2: move today. We can do that with Bloomberg's Alexandra semon Manova. 6 00:00:22,640 --> 00:00:26,800 Speaker 1: Minova it had her brain. So the guys, we have 7 00:00:26,880 --> 00:00:30,120 Speaker 1: to start with Google parent Alphabet. John just mentioned that 8 00:00:30,200 --> 00:00:33,120 Speaker 1: a lot of investors are upset about that big CAPEX number, 9 00:00:33,159 --> 00:00:35,440 Speaker 1: but there are a lot of positives in this report. 10 00:00:35,520 --> 00:00:39,080 Speaker 1: Despite the stock slumping today, the company topped projections for 11 00:00:39,200 --> 00:00:43,519 Speaker 1: quarterly revenue, specifically for its Google Cloud. Revenue jumped forty 12 00:00:43,560 --> 00:00:47,440 Speaker 1: eight percent to a whopping seventeen point seven billion dollars 13 00:00:47,479 --> 00:00:52,240 Speaker 1: that handily beat Wall Street estimates. Gemini its artificial intelligence model. 14 00:00:52,520 --> 00:00:55,720 Speaker 1: It is also rapidly reaching new users. And then here's 15 00:00:55,760 --> 00:00:59,200 Speaker 1: the number that is making traders upset. Capex will reach 16 00:00:59,240 --> 00:01:01,360 Speaker 1: as much as a one hundred and eighty five billion 17 00:01:01,400 --> 00:01:04,360 Speaker 1: dollars this year, compared to roughly one hundred and twenty 18 00:01:04,440 --> 00:01:08,720 Speaker 1: billion dollars that analysts were expecting. They're expected spending for 19 00:01:08,760 --> 00:01:11,760 Speaker 1: twenty twenty six altogether, will also total more than what 20 00:01:12,000 --> 00:01:15,240 Speaker 1: the company spend in the prior three quarters, but CEO 21 00:01:15,400 --> 00:01:18,000 Speaker 1: Sindhar Pachai is saying that this is necessary, that they're 22 00:01:18,040 --> 00:01:22,200 Speaker 1: already seeing that spending actually be monetized in their AI endeavors. 23 00:01:22,200 --> 00:01:25,280 Speaker 1: And then Jeffrey's analysts also point out that AI is 24 00:01:25,319 --> 00:01:27,600 Speaker 1: paying off for Google. I'm well enough to remember when 25 00:01:27,640 --> 00:01:30,840 Speaker 1: companies actually get rewarded for taking their AI capex. Yeah, 26 00:01:30,880 --> 00:01:33,080 Speaker 1: not so much anymore. I loved what one trader said 27 00:01:33,080 --> 00:01:36,520 Speaker 1: that this was Alphabet's mic drop kapex because the number 28 00:01:36,560 --> 00:01:39,440 Speaker 1: is so mammoth. What else are you looking at, Alex? Yeah, 29 00:01:39,480 --> 00:01:41,920 Speaker 1: I'm also taking a look at shares of S day later. 30 00:01:42,120 --> 00:01:45,600 Speaker 1: Looks like they're down twenty percent right now. Really tough 31 00:01:45,680 --> 00:01:48,240 Speaker 1: day for the company. It boosted its outlook, but it 32 00:01:48,400 --> 00:01:51,440 Speaker 1: just wasn't enough for investors who were expecting more from 33 00:01:51,560 --> 00:01:55,520 Speaker 1: its turnaround effort. Helmed by their new CEO, Stephanie de 34 00:01:55,640 --> 00:01:59,480 Speaker 1: la for Favaray, Sorry if I'm mispronouncing her name, the 35 00:01:59,520 --> 00:02:03,640 Speaker 1: company narrowly narrowly beat Wall streets expectations for revenue and 36 00:02:03,760 --> 00:02:07,160 Speaker 1: adjusted earnings per share in its most recent quarter. That 37 00:02:07,360 --> 00:02:11,280 Speaker 1: was lifted by growth in skincare products including Lamaire and 38 00:02:11,440 --> 00:02:15,480 Speaker 1: the ordinary people were also buying their fragrances from tom 39 00:02:15,600 --> 00:02:19,839 Speaker 1: Ford and Lalabo. It also narrowed its outlook range four. 40 00:02:19,840 --> 00:02:22,440 Speaker 1: Net revenue growth in the current fiscal quarter end in 41 00:02:22,560 --> 00:02:26,480 Speaker 1: June now forecasts three percent to five percent growth. So 42 00:02:26,480 --> 00:02:28,919 Speaker 1: solid number is just a really high bar, as we're 43 00:02:28,919 --> 00:02:30,600 Speaker 1: seeing with a lot of companies this earning season. 44 00:02:30,960 --> 00:02:32,120 Speaker 2: You have to invest in your face. 45 00:02:32,320 --> 00:02:35,239 Speaker 1: I mean I learned that from Alex Let's see who 46 00:02:35,280 --> 00:02:38,160 Speaker 1: said that. There's actually I have not There is a 47 00:02:38,200 --> 00:02:41,639 Speaker 1: great article I don't remember who published it about how 48 00:02:41,720 --> 00:02:45,160 Speaker 1: because millennials can't afford homes, they're actually investing in skincare 49 00:02:45,200 --> 00:02:50,040 Speaker 1: products and self care. Okay, affordable luxuries because are not 50 00:02:50,440 --> 00:02:53,520 Speaker 1: exactly all right, let's move on to another household name. Yeah, 51 00:02:53,520 --> 00:02:55,160 Speaker 1: we have to end on a high note. So many 52 00:02:55,200 --> 00:02:58,120 Speaker 1: negative news today, but some positive news from Hershey. They 53 00:02:58,160 --> 00:03:01,280 Speaker 1: offered a better than expected to twenty six outlook. Just 54 00:03:01,320 --> 00:03:03,240 Speaker 1: taking a look at the stock right now, shares are 55 00:03:03,320 --> 00:03:06,680 Speaker 1: up about seven percent. They said that higher prices and 56 00:03:06,800 --> 00:03:10,160 Speaker 1: new products are set to boost performance. The company sees 57 00:03:10,200 --> 00:03:13,040 Speaker 1: adjusted earnings per share of about eight dollars and twenty 58 00:03:13,080 --> 00:03:16,079 Speaker 1: cents to eight dollars and fifty two cents, and sales 59 00:03:16,200 --> 00:03:19,080 Speaker 1: gaining four percent and five percent in twenty twenty six. 60 00:03:19,560 --> 00:03:22,519 Speaker 1: They have, of course been impacted by tariffs and higher 61 00:03:22,560 --> 00:03:25,720 Speaker 1: cocoa costs, but chocolate makers did get a little bit 62 00:03:25,720 --> 00:03:28,240 Speaker 1: of reprieve when the President said that he will not 63 00:03:28,520 --> 00:03:32,720 Speaker 1: issue reciprocal tariffs on coco or. She also said that 64 00:03:32,840 --> 00:03:35,839 Speaker 1: cost pressure from commodities and tariffs is set to be 65 00:03:35,840 --> 00:03:37,560 Speaker 1: better this year, so they're going to spend more of 66 00:03:37,600 --> 00:03:39,360 Speaker 1: that money on advertising. 67 00:03:40,400 --> 00:03:44,440 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 68 00:03:44,520 --> 00:03:47,080 Speaker 2: us throughout the day for the latest roundup of companies 69 00:03:47,160 --> 00:03:50,240 Speaker 2: making news on Wall Street and for the latest market 70 00:03:50,280 --> 00:03:54,720 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 71 00:03:54,840 --> 00:03:58,280 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 72 00:03:58,400 --> 00:03:59,880 Speaker 2: the Bloomberg Business app.