Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I'm Carol Masser along with Tim Stenwick. Let's get to
Speaker 1: those stocks on the move as we speak. And joining
Speaker 1: us right now is Bloomberg News crossuset reporter Isabelle the
Speaker 1: We're going to get to Alphabet in a moment, but
Speaker 1: let's start.
Speaker 3: With the ARM.
Speaker 4: We gut start with ARM.
Speaker 5: Actually we're very spoiled with choices today, so armshars. They
Speaker 5: tumbled in late trading. Actually they're down. Oh now they're unchanged.
Speaker 3: Everything's bouncing around a lot.
Speaker 4: I want to make sure I get this right. No,
Speaker 4: my terminal lag.
Speaker 5: Three.
Speaker 3: Yeah, there is.
Speaker 6: But there was a move higher in the after hours
Speaker 6: to make them like.
Speaker 3: It could have been an individual trade or something.
Speaker 4: But unchanged. Yes, And then but now they're down bad.
Speaker 5: They tumbled because the company reported sales forecasts that disappointed
Speaker 5: and investors who have grown more skeptical of companies that
Speaker 5: are really tight to AI. So anything AI now is
Speaker 5: a little bit scary to some investors. The stock has
Speaker 5: dropped already more than four percent through Wednesday's close. So again,
Speaker 5: this negative reaction reflects just the high bar that investors
Speaker 5: are looking for when it comes to companies in the
Speaker 5: AI space. It's really just this price for perfection theme,
Speaker 5: and ARM has carved out a growing share of spending
Speaker 5: on AI data centers, helping build out traditional strength and
Speaker 5: smartphone technology. But still it's the early stages of capitalizing
Speaker 5: on the AI women. Investors are just wondering, when will
Speaker 5: I get that.
Speaker 3: What everybody says early, early, more to come, more to
Speaker 3: come until it's late.
Speaker 1: My question, which takes us to Alphabet, which has been
Speaker 1: bouncing around in the aftermarket.
Speaker 3: We can get to the trade in just a moment.
Speaker 1: But speaking of the build out and the spend, that
Speaker 1: number blew away the street estimate.
Speaker 5: It definitely blew away the street estimates, and they told
Speaker 5: investors they're planning to spend far more than investors expected
Speaker 5: this year. At the stock is up by two point
Speaker 5: seven percent. They're actually the best performing Magnificent seven stock,
Speaker 5: though it slipped off its peak.
Speaker 4: But look at that Alphabet, Isabeth, but it.
Speaker 6: Was down as you keep it earlier, but you know
Speaker 6: it was moving. That was a knee jerk reaction.
Speaker 7: Now the call when we're talking about this, the call
Speaker 7: is ongoing, so in after hours is always a little
Speaker 7: like you know, that is true, you kind of have
Speaker 7: to wait till the market.
Speaker 3: That's quite a swing.
Speaker 1: You're talking about down seven percent and it up what
Speaker 1: more than Where are we at right now?
Speaker 5: It's up too and a half percent? Yeah, if I'm
Speaker 5: looking at it correct, Yeah, that's right. So the company
Speaker 5: has really quickly improved their Gemini model and integrated it
Speaker 5: throughout its products. I feel like maybe Chat GPT, or
Speaker 5: at least among my circles, still remains the king, but
Speaker 5: people are increasingly liking Gemini.
Speaker 3: Do you you're using other stuff right?
Speaker 6: Yeah?
Speaker 7: So I was like early, not early, but I was
Speaker 7: using Chat GPT. Then I started using Claude. And I
Speaker 7: don't pay for any of them.
Speaker 4: Oh yeah, I don't even sign anyone because I want
Speaker 4: to have my data.
Speaker 7: And uh, I like, if you use up, you know,
Speaker 7: in a day or in a time period, Chat, GPT
Speaker 7: or Claude, then you can then you just go to
Speaker 7: Google and you can use Google Search. But Mandeep was
Speaker 7: here telling us that you can bundle Gemini in Google
Speaker 7: one services. So if you pay for other Google services
Speaker 7: you can then get Gemini is a standalone app, and
Speaker 7: that LLLM is different from the experience that I get
Speaker 7: using AI in Google Search.
Speaker 5: That's I didn't know that that's something I should try.
Speaker 7: So when Google gives that number about how many people
Speaker 7: are using Gemini fourth quarter Gemini app monthly active users
Speaker 7: seven hundred and fifty million versus six hundred and fifty
Speaker 7: million quarter over quarter, that's the standalone Gemini app.
Speaker 6: Oh wow, So that's a lot of people.
Speaker 5: A big win also is that they will be the
Speaker 5: provider of AI for THEORI on Apple's iPhone, So I
Speaker 5: mean imagine like your default will be that.
Speaker 3: Well, that's what Mandy've talked about.
Speaker 5: You know.
Speaker 1: Apple is so relying on alphabet Google specifically for their
Speaker 1: AI play, which is pretty wild.
Speaker 3: But that means you have a massive customer, right who
Speaker 3: can tap into automatic one. Yeah, yeah, big one.
Speaker 6: Twenty million autonomous trips in December for Weimo. That one's
Speaker 6: for Carol.
Speaker 3: Let me bring it on, bring it.
Speaker 4: I never been on one.
Speaker 3: Oh my god, you don't actually baked out? Do you
Speaker 3: like going to the spa?
Speaker 5: Yes?
Speaker 1: Okay, You're gonna love a weymo because especially if you
Speaker 1: go for like a good twenty minute or twenty five
Speaker 1: minute trip, which I have done.
Speaker 3: I mean I actually closed.
Speaker 6: My eyes to go all around all the areas.
Speaker 3: I was going to the airport, but I mean I
Speaker 3: actually closed my eyes. It was so relaxed.
Speaker 5: Okay, I do feel bad because sometimes you know you're
Speaker 5: just not having it that day, but then you feel bad,
Speaker 5: especially if the car service driver, whether it's at lift
Speaker 5: or uber, is.
Speaker 4: Trying to be nice to you, and I'm like, sir.
Speaker 3: It's not you, it's me, But really, I just had
Speaker 3: a bad day. You have to break up with it.
Speaker 4: Yeah, I know, I see that. People.
Speaker 3: Let's go to Qualcom also after the close, this one.
Speaker 5: Is down bad, also down by seven and a half percent.
Speaker 5: Earlier when I checked, it was down nine percent. So
Speaker 5: Qualcum is the largest maker of smart smartphone processors, and
Speaker 5: they gave lack less revenue forecast. So again this ra
Speaker 5: is concerned that component shortages will hurt consumer demand by
Speaker 5: driving prices up. I feel like we always talk about this,
Speaker 5: Carol like, yeah, there is a lot of demand, and
Speaker 5: what will happen to that? So shares are dropping and
Speaker 5: they said a, well, there's demand for high end phone.
Speaker 5: Some of its customers, especially those in China, will be
Speaker 5: making fewer handsets than expected because again they can't get
Speaker 5: enough memory chips, and the prices of those components are
Speaker 5: heading up up up.
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with
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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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