WEBVTT - Closing Bell: Salesforce's Revenue Disappoints, Cava Soars, Lowe's Falls 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, Podcasts, radio News. 0:00:10.080 --> 0:00:13.520 This is the closing bell on this stock movers report. 0:00:13.760 --> 0:00:16.720 The company's making moves at the close of US trading 0:00:16.880 --> 0:00:21.400 with Carol Masser, Tim Stenovack, Romain Bostik, and Katie Greifel. 0:00:22.360 --> 0:00:24.960 All right, guys, let's get you some individual gainers as 0:00:24.960 --> 0:00:27.360 we await some earnings to cross the Bloomberg terminal. I'm 0:00:27.360 --> 0:00:29.240 going to go to one that was the number one 0:00:29.240 --> 0:00:31.680 gainer in both the S and P five hundred NASEEQ 0:00:31.680 --> 0:00:34.320 one hundred. We're talking about Axon. It's the maker of 0:00:34.360 --> 0:00:37.760 tasers and also public safety software. They reported in an 0:00:37.760 --> 0:00:41.160 adjusted EPs for the fourth quarter that beat the average estimate. 0:00:41.240 --> 0:00:43.480 So this one up remains seventeen and a half percent. 0:00:43.479 --> 0:00:44.480 We got to go to Salesforce. 0:00:44.520 --> 0:00:46.839 Salesforce earnings crossing the wire. I'm going to start off 0:00:46.880 --> 0:00:49.600 with the forecast for the current quarter, the fiscal first quarter, 0:00:49.680 --> 0:00:52.960 the company c's revenue of about eleven billion dollars to 0:00:53.080 --> 0:00:55.920 eleven point one billion dollars, the low end of that range, 0:00:56.040 --> 0:00:58.160 higher than the average of street estimates of about ten 0:00:58.200 --> 0:01:00.800 point nine to nine billion for the current or the 0:01:00.840 --> 0:01:03.520 quarter that just passed. Excuse me, the company reported eleven 0:01:03.560 --> 0:01:06.240 point two billion dollars, slightly above what the street was 0:01:06.280 --> 0:01:09.160 looking for. Adjusted EPs also came in above what the 0:01:09.160 --> 0:01:11.560 street was looking for at three dollars and eighty one cents. 0:01:11.680 --> 0:01:14.280 The average of estimates was three zero five in Caroline. 0:01:14.400 --> 0:01:16.880 The company also saying that it plans to increase its 0:01:16.880 --> 0:01:20.639 share buyback authorization to fifty billion dollars and. 0:01:20.560 --> 0:01:23.000 Maybe tim that is what the investor base wants to hear, 0:01:23.040 --> 0:01:25.240 if that's the proof point, look believe in us. We're 0:01:25.280 --> 0:01:27.200 believing in our own stock. We think we're so beaten up, 0:01:27.200 --> 0:01:29.600 what more than forty percent in the last twelve months, 0:01:29.680 --> 0:01:31.320 We're going to be buying back to up to fifty 0:01:31.319 --> 0:01:34.240 billion dollars. There, they're trying to perhaps tempt people to 0:01:34.280 --> 0:01:36.200 start to figure on catching a falling. 0:01:36.000 --> 0:01:38.480 Knife, and also trying to get people to think of 0:01:38.520 --> 0:01:43.919 Salesforce increasingly as an agentic AI company. Mark Benioff, charired CEO, 0:01:44.040 --> 0:01:47.760 saying quote, We've rebuilt Salesforce to become the operating system 0:01:47.840 --> 0:01:51.720 for the agentic enterprise, bringing humans and agents together on 0:01:51.720 --> 0:01:54.560 one trusted platform. And the more intelligence moves to where 0:01:54.560 --> 0:01:58.320 work happens, the more valuable Salesforce becomes. The question is 0:01:58.360 --> 0:02:01.200 can it convince investors that it is a company for 0:02:01.440 --> 0:02:02.160 the AI. 0:02:01.960 --> 0:02:04.280 Era, you know, having said that, it's a stock that, 0:02:04.440 --> 0:02:06.880 as we know, has been under pressure, down almost thirty 0:02:06.920 --> 0:02:10.160 percent here in twenty twenty six. Already the stock is 0:02:10.160 --> 0:02:13.960 down about fifty percent since late December, or actually say 0:02:14.000 --> 0:02:17.160 late in twenty twenty four December of twenty twenty four, 0:02:17.240 --> 0:02:19.679 so it has been pulling back dramatically, and now you 0:02:19.720 --> 0:02:22.840 can see the stock in the aftermarket down about two percent. 0:02:22.919 --> 0:02:27.160 This is despite increasing its share buyback authorization to fifty 0:02:27.480 --> 0:02:31.120 billion dollars and again going to that first quota revenue 0:02:31.240 --> 0:02:33.840 eleven point zero three to eleven point zero eight billion, 0:02:33.919 --> 0:02:36.080 that is above the street estimate of ten point ninety 0:02:36.160 --> 0:02:38.720 nine billion, not enough though, and to impress investors, at 0:02:38.760 --> 0:02:40.760 least in that early after market trade. 0:02:40.840 --> 0:02:43.400 This sc also gets to the idea though, too, of 0:02:43.520 --> 0:02:46.680 just how important the conference calls are actually going to 0:02:46.680 --> 0:02:48.240 be here, and I do kind of wonder. I mean, 0:02:48.280 --> 0:02:50.840 it's kind of dueling conference calls because both Salesforce and 0:02:50.919 --> 0:02:53.920 Nvidia start at the same time. Caroline, who you're going 0:02:53.960 --> 0:02:54.400 to listen to? 0:02:55.680 --> 0:02:57.679 Hopefully we can spread across both. I'm going to be 0:02:57.680 --> 0:03:00.080 sitting next to you remain. I'm going to be dialing 0:03:00.080 --> 0:03:01.720 into what Ed is listening to on in video and 0:03:01.760 --> 0:03:03.720 what we're all listening to on CRM. But what I 0:03:03.720 --> 0:03:06.440 think is interesting is agent force. This is where we're 0:03:06.480 --> 0:03:09.560 seeing agents being deployed by CRM and what we're seeing 0:03:09.560 --> 0:03:11.079 in terms of the up selling, what we're seeing in 0:03:11.160 --> 0:03:13.480 terms of adoption. They say their average revenue run rate 0:03:13.600 --> 0:03:15.880 has reached eight hundred million dollars, up one hundred and 0:03:15.919 --> 0:03:18.240 sixty nine percent year of a year. They've pulled twenty 0:03:18.320 --> 0:03:20.800 nine thousand deals up fifty percent. Q on Q. Is 0:03:20.800 --> 0:03:23.320 that enough to show that their offerings in terms of 0:03:23.360 --> 0:03:26.760 agentic KI is enough to secure the amount of money 0:03:26.800 --> 0:03:28.760 and the amount of seats that they need people to 0:03:28.800 --> 0:03:29.680 still keep. 0:03:29.520 --> 0:03:32.520 On paying for well Salesforce shares down about two point 0:03:32.760 --> 0:03:35.560 seventy five three percent in the after hours trade. Desk 0:03:35.640 --> 0:03:39.280 shares down ten percent in the after hours, make that 0:03:39.320 --> 0:03:42.840 twelve percent at this point. This after the first quarter 0:03:42.960 --> 0:03:46.520 forecast missed estimates, first quarter revenue coming in at least 0:03:46.520 --> 0:03:48.920 at seventy six hundred and seventy eight million dollars. The 0:03:49.040 --> 0:03:51.560 estimate was for six hundred and eighty eight point eight 0:03:51.640 --> 0:03:55.400 million dollars a first quarter adjusted ebadah, this is the 0:03:55.440 --> 0:03:58.520 guidance about one hundred and ninety five million, the estimus 0:03:58.560 --> 0:04:01.080 for two hundred and twenty two points seven million dollars. 0:04:01.120 --> 0:04:03.960 Shares continuing to move lower, down about twelve point six 0:04:04.000 --> 0:04:05.120 percent in the after hour. 0:04:05.280 --> 0:04:07.120 Yeah, and that's on top of already about a thirty 0:04:07.120 --> 0:04:10.440 four percent decline in shares of trade desk here in 0:04:10.800 --> 0:04:13.760 twenty twenty six. I should point out about ten percent 0:04:13.760 --> 0:04:15.880 of the float is short, so any kind of negative 0:04:17.000 --> 0:04:19.200 you know, maybe the shorts kind of have it right, 0:04:19.240 --> 0:04:21.720 but you're definitely seeing this stock down almost another twelve 0:04:21.760 --> 0:04:22.960 percent here in the aftermarket. 0:04:23.000 --> 0:04:24.640 Yeah. And it gets to this idea too. I mean, 0:04:24.680 --> 0:04:26.680 we talk about the idea of what these ad tech 0:04:26.720 --> 0:04:28.920 platforms they're doing, and the idea of a lot of 0:04:28.960 --> 0:04:31.119 the money flowing away from some of the more single 0:04:31.160 --> 0:04:33.440 players in that space, and too, I guess some of 0:04:33.480 --> 0:04:35.599 those bigger tech companies that of course have their own 0:04:35.880 --> 0:04:38.080 already baked into it. It'll be interesting that's actually a 0:04:38.160 --> 0:04:40.120 conference call. I'd be interested to be a fly on 0:04:40.160 --> 0:04:40.920 the wall on as well. 0:04:41.880 --> 0:04:44.600 People are pretty positive on all of these companies when 0:04:44.600 --> 0:04:47.320 you're looking at the analyst recommendations twenty two say bye 0:04:47.400 --> 0:04:49.840 on trade desk only three say c. The price target 0:04:50.080 --> 0:04:52.240 is well above where they currently trade is some forty 0:04:52.279 --> 0:04:54.840 six dollars. So where are they going to be able 0:04:54.880 --> 0:04:57.240 to convince the market that you can start adding to 0:04:57.279 --> 0:04:59.960 these names amid the disruption and ai ans list. 0:05:00.320 --> 0:05:02.280 All right, we're talking a lot about technology. Let's go 0:05:02.320 --> 0:05:05.640 to a retailer a little bit of lightness, perhaps Urban 0:05:05.680 --> 0:05:09.160 Outfitters out with their results fourth quarter EPs A dollar 0:05:09.279 --> 0:05:11.800 five a share fourth quarter just at EPs, that's coming 0:05:11.839 --> 0:05:14.240 in better what the street was expecting. A dollar forty 0:05:14.279 --> 0:05:17.080 three a share versus a dollar twenty six and fourth 0:05:17.120 --> 0:05:19.840 quarter com retail segment sales up about five and a 0:05:19.920 --> 0:05:22.760 half percent. That's a beat two in terms of what 0:05:22.800 --> 0:05:25.200 the street was expecting. Remain and this stock's up about 0:05:25.200 --> 0:05:26.840 one and a half percent here in the aftermarket. 0:05:26.920 --> 0:05:29.200 Let's go back to text snow Flake shares higher in 0:05:29.240 --> 0:05:31.880 the after hours trade. Here the company saying that first 0:05:31.960 --> 0:05:35.080 quarter product revenue and its words will be in a 0:05:35.160 --> 0:05:37.320 range of one point twenty six to one point twenty 0:05:37.360 --> 0:05:39.360 seven billion. That's pretty much on the nose of what 0:05:39.360 --> 0:05:41.400 the street was expecting. That's coming on the heels of 0:05:41.400 --> 0:05:44.240 a fourth quarter revenue of about one point two eight billion, 0:05:44.279 --> 0:05:46.640 slightly higher than what the street was looking for. For 0:05:46.680 --> 0:05:49.120 the full year, the company says expect about five point 0:05:49.160 --> 0:05:52.080 sixty six billion dollars in revenue. The street was looking 0:05:52.120 --> 0:05:54.400 for five point five to four. The company also says 0:05:54.440 --> 0:05:58.360 adjusted operating margin for the full year twelve point five percent, 0:05:58.480 --> 0:06:00.640 so at least on the margin here, it looks like 0:06:00.640 --> 0:06:03.719 a relatively inline quarter and a slight slight guide higher 0:06:03.960 --> 0:06:04.719 for the full year. 0:06:04.960 --> 0:06:08.720 Let's check out Zoom Communications because look, revenue beats both 0:06:08.800 --> 0:06:11.479 in its fiscal quarter reported and its full year guidance, 0:06:11.800 --> 0:06:13.760 but not so much if you're looking at the profitability 0:06:13.800 --> 0:06:16.000 they're really seeing twenty twenty seven adjusted earnings for share 0:06:16.040 --> 0:06:18.080 coming at five dollars seventy seven to five dollars eighty one. 0:06:18.080 --> 0:06:20.880 Now the market want to see six dollars six soon, though, 0:06:20.880 --> 0:06:23.440 did see that twenty twenty seven revenue will be in 0:06:23.480 --> 0:06:25.479 the range of five point zero seven to five point 0:06:25.560 --> 0:06:27.840 zero eight. That was a beat compared to the expectations. 0:06:27.920 --> 0:06:29.960 And for their fourth quarter, we saw online revenue up 0:06:29.960 --> 0:06:31.560 two point six percent year on year, and you also 0:06:31.560 --> 0:06:33.640 saw a beat in terms of their revenue, but again 0:06:33.760 --> 0:06:36.200 earnings per share falling short. This is a company that's 0:06:36.200 --> 0:06:38.919 having to invest in itself tied again, convince people that 0:06:39.000 --> 0:06:41.839 stick with our product, stick with the conferencing, stick with 0:06:41.880 --> 0:06:44.000 the AI that we've already integrated, but they're probably having 0:06:44.040 --> 0:06:45.960 to spend a bit on that. Missing cash and cash 0:06:46.000 --> 0:06:47.640 equivalents falling some six percent. 0:06:48.560 --> 0:06:50.480 Well, I'm looking at shares of paramount S guid Dance 0:06:50.560 --> 0:06:54.000 down about one point six percent. We're getting some some 0:06:54.240 --> 0:06:57.760 results from the company, not everything at this point in 0:06:57.839 --> 0:07:01.760 terms of that outlook. Paramount Guidance C's fiscal year revenue 0:07:01.760 --> 0:07:04.800 at thirty billion dollars. A look back fourth quarter year 0:07:04.839 --> 0:07:08.200 ofvery year Paramount plus revenue up seventeen percent, fourth quarter 0:07:08.600 --> 0:07:11.400 revenue coming in just above estimates at eight point one 0:07:11.520 --> 0:07:14.679 five billion dollars. Fourth quarter loss per share from continued 0:07:14.680 --> 0:07:17.320 operations at fifty two cents. Fourth quarter operating loss at 0:07:17.360 --> 0:07:20.520 three hundred and thirty nine million dollars estimate was for 0:07:20.520 --> 0:07:23.239 a profit a three hundred and nine point three million dollars. 0:07:23.280 --> 0:07:25.680 Shares down about one point six percent. The real story 0:07:25.720 --> 0:07:28.040 with this company, though, is does it get those assets 0:07:28.120 --> 0:07:31.760 from Warner Brothers Discovery, or does Netflix, win Out shares 0:07:31.760 --> 0:07:32.960 down about one point six percent. 0:07:32.960 --> 0:07:35.520 All right, let's go to the company behind WWE and 0:07:35.600 --> 0:07:37.520 so much more of those live events we're talking about, 0:07:37.520 --> 0:07:41.120 TKO Out with their results. Fourth quarter total revenue coming 0:07:41.160 --> 0:07:43.880 in slightly above all the street estimated one point zero 0:07:43.920 --> 0:07:47.320 four billion. If you go to WWE adjusted ebitdo that 0:07:47.440 --> 0:07:49.320 was better than the street was expecting. One hundred and 0:07:49.320 --> 0:07:53.080 sixty five million UFC revenue four hundred and one point 0:07:53.160 --> 0:07:55.200 four million. Again, that was better than what the street 0:07:55.240 --> 0:07:57.840 was expected. And fourth quarter adj just did EBITA coming 0:07:57.880 --> 0:08:00.600 in better than what the street was expecting. Stock Steel 0:08:00.600 --> 0:08:03.600 down about two point three percent here in the aftermarket. 0:08:04.400 --> 0:08:08.600 The Stockmover's report from Bloomberg Radio. Check back with us 0:08:08.680 --> 0:08:11.480 throughout the day for the latest roundup of companies making 0:08:11.560 --> 0:08:15.160 news on Wall Street and for the latest market moving headlines. 0:08:15.360 --> 0:08:19.360 Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg 0:08:19.440 --> 0:08:22.480 dot com, and on Applecarplay and Android Auto with the 0:08:22.520 --> 0:08:23.880 Bloomberg Business app.