Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market. Harnessing the power of Bloomberg Data. Let's
Speaker 2: take a look at some of the stocks on the
Speaker 2: move today. We can do that with Bloomberg's Alexandra semon Manova.
Speaker 1: Minova it had her brain. So the guys, we have
Speaker 1: to start with Google parent Alphabet. John just mentioned that
Speaker 1: a lot of investors are upset about that big CAPEX number,
Speaker 1: but there are a lot of positives in this report.
Speaker 1: Despite the stock slumping today, the company topped projections for
Speaker 1: quarterly revenue, specifically for its Google Cloud. Revenue jumped forty
Speaker 1: eight percent to a whopping seventeen point seven billion dollars
Speaker 1: that handily beat Wall Street estimates. Gemini its artificial intelligence model.
Speaker 1: It is also rapidly reaching new users. And then here's
Speaker 1: the number that is making traders upset. Capex will reach
Speaker 1: as much as a one hundred and eighty five billion
Speaker 1: dollars this year, compared to roughly one hundred and twenty
Speaker 1: billion dollars that analysts were expecting. They're expected spending for
Speaker 1: twenty twenty six altogether, will also total more than what
Speaker 1: the company spend in the prior three quarters, but CEO
Speaker 1: Sindhar Pachai is saying that this is necessary, that they're
Speaker 1: already seeing that spending actually be monetized in their AI endeavors.
Speaker 1: And then Jeffrey's analysts also point out that AI is
Speaker 1: paying off for Google. I'm well enough to remember when
Speaker 1: companies actually get rewarded for taking their AI capex. Yeah,
Speaker 1: not so much anymore. I loved what one trader said
Speaker 1: that this was Alphabet's mic drop kapex because the number
Speaker 1: is so mammoth. What else are you looking at, Alex? Yeah,
Speaker 1: I'm also taking a look at shares of S day later.
Speaker 1: Looks like they're down twenty percent right now. Really tough
Speaker 1: day for the company. It boosted its outlook, but it
Speaker 1: just wasn't enough for investors who were expecting more from
Speaker 1: its turnaround effort. Helmed by their new CEO, Stephanie de
Speaker 1: la for Favaray, Sorry if I'm mispronouncing her name, the
Speaker 1: company narrowly narrowly beat Wall streets expectations for revenue and
Speaker 1: adjusted earnings per share in its most recent quarter. That
Speaker 1: was lifted by growth in skincare products including Lamaire and
Speaker 1: the ordinary people were also buying their fragrances from tom
Speaker 1: Ford and Lalabo. It also narrowed its outlook range four.
Speaker 1: Net revenue growth in the current fiscal quarter end in
Speaker 1: June now forecasts three percent to five percent growth. So
Speaker 1: solid number is just a really high bar, as we're
Speaker 1: seeing with a lot of companies this earning season.
Speaker 2: You have to invest in your face.
Speaker 1: I mean I learned that from Alex Let's see who
Speaker 1: said that. There's actually I have not There is a
Speaker 1: great article I don't remember who published it about how
Speaker 1: because millennials can't afford homes, they're actually investing in skincare
Speaker 1: products and self care. Okay, affordable luxuries because are not
Speaker 1: exactly all right, let's move on to another household name. Yeah,
Speaker 1: we have to end on a high note. So many
Speaker 1: negative news today, but some positive news from Hershey. They
Speaker 1: offered a better than expected to twenty six outlook. Just
Speaker 1: taking a look at the stock right now, shares are
Speaker 1: up about seven percent. They said that higher prices and
Speaker 1: new products are set to boost performance. The company sees
Speaker 1: adjusted earnings per share of about eight dollars and twenty
Speaker 1: cents to eight dollars and fifty two cents, and sales
Speaker 1: gaining four percent and five percent in twenty twenty six.
Speaker 1: They have, of course been impacted by tariffs and higher
Speaker 1: cocoa costs, but chocolate makers did get a little bit
Speaker 1: of reprieve when the President said that he will not
Speaker 1: issue reciprocal tariffs on coco or. She also said that
Speaker 1: cost pressure from commodities and tariffs is set to be
Speaker 1: better this year, so they're going to spend more of
Speaker 1: that money on advertising.
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,
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