WEBVTT - Google Rises; Arm, Qualcomm Fall After Earnings

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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 Masser along with Tim Stenwick. Let's get to

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<v Speaker 1>those stocks on the move as we speak. And joining

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<v Speaker 1>us right now is Bloomberg News crossuset reporter Isabelle the

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<v Speaker 1>We're going to get to Alphabet in a moment, but

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<v Speaker 1>let's start.

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<v Speaker 3>With the ARM.

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<v Speaker 4>We gut start with ARM.

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<v Speaker 5>Actually we're very spoiled with choices today, so armshars. They

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<v Speaker 5>tumbled in late trading. Actually they're down. Oh now they're unchanged.

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<v Speaker 3>Everything's bouncing around a lot.

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<v Speaker 4>I want to make sure I get this right. No,

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<v Speaker 4>my terminal lag.

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<v Speaker 5>Three.

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<v Speaker 3>Yeah, there is.

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<v Speaker 6>But there was a move higher in the after hours

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<v Speaker 6>to make them like.

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<v Speaker 3>It could have been an individual trade or something.

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<v Speaker 4>But unchanged. Yes, And then but now they're down bad.

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<v Speaker 5>They tumbled because the company reported sales forecasts that disappointed

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<v Speaker 5>and investors who have grown more skeptical of companies that

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<v Speaker 5>are really tight to AI. So anything AI now is

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<v Speaker 5>a little bit scary to some investors. The stock has

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<v Speaker 5>dropped already more than four percent through Wednesday's close. So again,

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<v Speaker 5>this negative reaction reflects just the high bar that investors

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<v Speaker 5>are looking for when it comes to companies in the

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<v Speaker 5>AI space. It's really just this price for perfection theme,

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<v Speaker 5>and ARM has carved out a growing share of spending

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<v Speaker 5>on AI data centers, helping build out traditional strength and

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<v Speaker 5>smartphone technology. But still it's the early stages of capitalizing

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<v Speaker 5>on the AI women. Investors are just wondering, when will

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<v Speaker 5>I get that.

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<v Speaker 3>What everybody says early, early, more to come, more to

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<v Speaker 3>come until it's late.

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<v Speaker 1>My question, which takes us to Alphabet, which has been

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<v Speaker 1>bouncing around in the aftermarket.

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<v Speaker 3>We can get to the trade in just a moment.

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<v Speaker 1>But speaking of the build out and the spend, that

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<v Speaker 1>number blew away the street estimate.

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<v Speaker 5>It definitely blew away the street estimates, and they told

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<v Speaker 5>investors they're planning to spend far more than investors expected

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<v Speaker 5>this year. At the stock is up by two point

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<v Speaker 5>seven percent. They're actually the best performing Magnificent seven stock,

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<v Speaker 5>though it slipped off its peak.

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<v Speaker 4>But look at that Alphabet, Isabeth, but it.

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<v Speaker 6>Was down as you keep it earlier, but you know

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<v Speaker 6>it was moving. That was a knee jerk reaction.

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<v Speaker 7>Now the call when we're talking about this, the call

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<v Speaker 7>is ongoing, so in after hours is always a little

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<v Speaker 7>like you know, that is true, you kind of have

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<v Speaker 7>to wait till the market.

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<v Speaker 3>That's quite a swing.

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<v Speaker 1>You're talking about down seven percent and it up what

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<v Speaker 1>more than Where are we at right now?

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<v Speaker 5>It's up too and a half percent? Yeah, if I'm

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<v Speaker 5>looking at it correct, Yeah, that's right. So the company

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<v Speaker 5>has really quickly improved their Gemini model and integrated it

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<v Speaker 5>throughout its products. I feel like maybe Chat GPT, or

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<v Speaker 5>at least among my circles, still remains the king, but

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<v Speaker 5>people are increasingly liking Gemini.

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<v Speaker 3>Do you you're using other stuff right?

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<v Speaker 6>Yeah?

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<v Speaker 7>So I was like early, not early, but I was

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<v Speaker 7>using Chat GPT. Then I started using Claude. And I

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<v Speaker 7>don't pay for any of them.

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<v Speaker 4>Oh yeah, I don't even sign anyone because I want

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<v Speaker 4>to have my data.

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<v Speaker 7>And uh, I like, if you use up, you know,

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<v Speaker 7>in a day or in a time period, Chat, GPT

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<v Speaker 7>or Claude, then you can then you just go to

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<v Speaker 7>Google and you can use Google Search. But Mandeep was

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<v Speaker 7>here telling us that you can bundle Gemini in Google

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<v Speaker 7>one services. So if you pay for other Google services

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<v Speaker 7>you can then get Gemini is a standalone app, and

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<v Speaker 7>that LLLM is different from the experience that I get

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<v Speaker 7>using AI in Google Search.

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<v Speaker 5>That's I didn't know that that's something I should try.

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<v Speaker 7>So when Google gives that number about how many people

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<v Speaker 7>are using Gemini fourth quarter Gemini app monthly active users

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<v Speaker 7>seven hundred and fifty million versus six hundred and fifty

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<v Speaker 7>million quarter over quarter, that's the standalone Gemini app.

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<v Speaker 6>Oh wow, So that's a lot of people.

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<v Speaker 5>A big win also is that they will be the

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<v Speaker 5>provider of AI for THEORI on Apple's iPhone, So I

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<v Speaker 5>mean imagine like your default will be that.

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<v Speaker 3>Well, that's what Mandy've talked about.

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<v Speaker 5>You know.

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<v Speaker 1>Apple is so relying on alphabet Google specifically for their

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<v Speaker 1>AI play, which is pretty wild.

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<v Speaker 3>But that means you have a massive customer, right who

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<v Speaker 3>can tap into automatic one. Yeah, yeah, big one.

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<v Speaker 6>Twenty million autonomous trips in December for Weimo. That one's

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<v Speaker 6>for Carol.

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<v Speaker 3>Let me bring it on, bring it.

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<v Speaker 4>I never been on one.

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<v Speaker 3>Oh my god, you don't actually baked out? Do you

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<v Speaker 3>like going to the spa?

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<v Speaker 5>Yes?

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<v Speaker 1>Okay, You're gonna love a weymo because especially if you

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<v Speaker 1>go for like a good twenty minute or twenty five

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<v Speaker 1>minute trip, which I have done.

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<v Speaker 3>I mean I actually closed.

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<v Speaker 6>My eyes to go all around all the areas.

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<v Speaker 3>I was going to the airport, but I mean I

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<v Speaker 3>actually closed my eyes. It was so relaxed.

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<v Speaker 5>Okay, I do feel bad because sometimes you know you're

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<v Speaker 5>just not having it that day, but then you feel bad,

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<v Speaker 5>especially if the car service driver, whether it's at lift

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<v Speaker 5>or uber, is.

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<v Speaker 4>Trying to be nice to you, and I'm like, sir.

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<v Speaker 3>It's not you, it's me, But really, I just had

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<v Speaker 3>a bad day. You have to break up with it.

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<v Speaker 4>Yeah, I know, I see that. People.

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<v Speaker 3>Let's go to Qualcom also after the close, this one.

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<v Speaker 5>Is down bad, also down by seven and a half percent.

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<v Speaker 5>Earlier when I checked, it was down nine percent. So

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<v Speaker 5>Qualcum is the largest maker of smart smartphone processors, and

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<v Speaker 5>they gave lack less revenue forecast. So again this ra

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<v Speaker 5>is concerned that component shortages will hurt consumer demand by

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<v Speaker 5>driving prices up. I feel like we always talk about this,

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<v Speaker 5>Carol like, yeah, there is a lot of demand, and

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<v Speaker 5>what will happen to that? So shares are dropping and

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<v Speaker 5>they said a, well, there's demand for high end phone.

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<v Speaker 5>Some of its customers, especially those in China, will be

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<v Speaker 5>making fewer handsets than expected because again they can't get

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<v Speaker 5>enough memory chips, and the prices of those components are

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<v Speaker 5>heading up up up.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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