1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg data. 4 00:00:16,960 --> 00:00:19,439 Speaker 1: Let's take a look at some stocks in the move today. 5 00:00:19,800 --> 00:00:23,680 Speaker 1: I'm Tom Keen with Paul Sweeney and Bloomberg's John Tucker. 6 00:00:23,920 --> 00:00:28,040 Speaker 3: So Disney reporting sales. The sales fell short of expectations, 7 00:00:28,200 --> 00:00:31,640 Speaker 3: and big budget films like the new Avatar picture that's 8 00:00:31,640 --> 00:00:34,160 Speaker 3: going to weigh on results. Revenue for the fourth quarter 9 00:00:34,159 --> 00:00:36,400 Speaker 3: a little change at twenty two and a half billion dollars. 10 00:00:36,400 --> 00:00:40,960 Speaker 3: The earnings a dollar eleven a share, So that's a beat. 11 00:00:40,960 --> 00:00:46,159 Speaker 3: Disney's entertainment division faces a number of challenges on several fronts, 12 00:00:46,200 --> 00:00:50,000 Speaker 3: streaming films and TV. They predict three hundred and seventy 13 00:00:50,000 --> 00:00:53,080 Speaker 3: five million dollars in operating income from online video in 14 00:00:53,120 --> 00:00:56,920 Speaker 3: the first quarter. That's higher for the business, higher profit, 15 00:00:57,000 --> 00:01:00,360 Speaker 3: but Wall Street was expecting more. You also have these 16 00:01:00,400 --> 00:01:04,440 Speaker 3: expenses tied to z Utopia two and Avatar fire and 17 00:01:04,480 --> 00:01:07,839 Speaker 3: ash that's going to reduce earnings by four hundred million dollars. 18 00:01:07,959 --> 00:01:12,119 Speaker 3: I got to wonder why they're releasing Avatar. What December seventeenth, 19 00:01:12,200 --> 00:01:14,160 Speaker 3: I think, yeah, you do not have to capture a lot. 20 00:01:14,400 --> 00:01:16,440 Speaker 3: I know, I don't get it. Usually they do it 21 00:01:16,480 --> 00:01:19,360 Speaker 3: right before Thanksgiving. Then you have the theme parking, cruise 22 00:01:19,440 --> 00:01:22,839 Speaker 3: unit experiences. They're gonna have one hundred and fifty million 23 00:01:22,880 --> 00:01:26,039 Speaker 3: dollars in plant expenses in the first fiscal quarter, new 24 00:01:26,120 --> 00:01:29,000 Speaker 3: ships and dock work for the. 25 00:01:30,000 --> 00:01:33,360 Speaker 4: On they're doing the launching had two or three new ships, 26 00:01:33,400 --> 00:01:34,720 Speaker 4: and each of one of those ships is like a 27 00:01:34,720 --> 00:01:35,360 Speaker 4: billion dollars. 28 00:01:36,120 --> 00:01:37,760 Speaker 1: I went back and look, you can do this in 29 00:01:37,800 --> 00:01:40,759 Speaker 1: the Bloomberg A ten year per year return of Disney 30 00:01:41,200 --> 00:01:44,560 Speaker 1: is one percent per year. Yep. Is it a failed 31 00:01:44,600 --> 00:01:45,199 Speaker 1: blue chip? 32 00:01:45,280 --> 00:01:48,200 Speaker 4: I mean, do we It's a tough business, and it's 33 00:01:48,200 --> 00:01:51,280 Speaker 4: a business that's dealing with all this disruption from the Internet, Netflix. 34 00:01:51,680 --> 00:01:53,840 Speaker 4: The whole industry has been on spack for a decade. 35 00:01:53,960 --> 00:01:56,920 Speaker 3: How much competition are they facing from like comcasts for 36 00:01:57,200 --> 00:01:58,840 Speaker 3: the entertainment division. 37 00:01:59,040 --> 00:02:02,480 Speaker 4: Yeah, they are, they are. I mean, it's it's competition. 38 00:02:02,520 --> 00:02:05,520 Speaker 4: But the theme parts are just a rock steady business, 39 00:02:05,760 --> 00:02:09,200 Speaker 4: thirteen fourteen to fifty percent profit growth every single quarter. 40 00:02:09,400 --> 00:02:13,600 Speaker 3: Okay, onto the network equipment giant Cisco Systems boosting the 41 00:02:13,800 --> 00:02:18,280 Speaker 3: forecast showing progress in their effort to capture more AI spending. 42 00:02:18,360 --> 00:02:21,760 Speaker 3: The company this is the top maker machines that run 43 00:02:21,760 --> 00:02:25,160 Speaker 3: computer networks and the Internet. They now expect sales of 44 00:02:25,200 --> 00:02:28,960 Speaker 3: as much as sixty one billion dollars in the fiscal 45 00:02:29,040 --> 00:02:32,600 Speaker 3: year that ends wedd in July. That's about a billion 46 00:02:32,680 --> 00:02:36,240 Speaker 3: more than they previously expected, higher than Wall Street estimates. 47 00:02:36,280 --> 00:02:41,200 Speaker 3: Cisco also increasing its earnings forecast, which again top analyst predictions. 48 00:02:41,600 --> 00:02:44,760 Speaker 3: The CEO there, Chuck Robbins, is the need for secured 49 00:02:44,880 --> 00:02:49,600 Speaker 3: networking in AI is helping fuel demand and let me 50 00:02:49,639 --> 00:02:54,320 Speaker 3: finish up with anthropic not on a lot of people's radar, 51 00:02:54,440 --> 00:02:57,160 Speaker 3: but it's kind of interesting they spend they're going to 52 00:02:57,200 --> 00:02:59,800 Speaker 3: spend fifty billion dollars to build custom data centers for 53 00:02:59,840 --> 00:03:04,440 Speaker 3: our official intelligence in a number of US locations, including 54 00:03:04,919 --> 00:03:07,839 Speaker 3: Texas and New York. I have yet to hear any 55 00:03:07,880 --> 00:03:12,880 Speaker 3: political pushback on a significant scale about the AI spending 56 00:03:13,240 --> 00:03:16,679 Speaker 3: in places like particularly in New York and Texas, where 57 00:03:16,720 --> 00:03:20,600 Speaker 3: you do have significant power problems because as you know, 58 00:03:20,760 --> 00:03:25,240 Speaker 3: they have an independent gridexas Texas, they do they're going 59 00:03:25,320 --> 00:03:29,080 Speaker 3: to be competing with the likes of US for electricity demand, 60 00:03:29,160 --> 00:03:29,320 Speaker 3: and the. 61 00:03:29,320 --> 00:03:31,800 Speaker 1: Guests that we've got in that are hugely qualified and 62 00:03:31,840 --> 00:03:35,920 Speaker 1: this may clear the grid and the capital cost of 63 00:03:35,960 --> 00:03:40,240 Speaker 1: the transmission. YEP is the key item for the pros. 64 00:03:40,320 --> 00:03:42,320 Speaker 4: Yeah, that's going to be the gating issue. That's the 65 00:03:42,320 --> 00:03:42,880 Speaker 4: gating issue. 66 00:03:42,920 --> 00:03:45,280 Speaker 1: But still the gating issue for the politicians is our 67 00:03:45,320 --> 00:03:46,160 Speaker 1: electric bills. 68 00:03:46,240 --> 00:03:50,040 Speaker 3: Yeah, so anthropics as these news sites they say, are 69 00:03:50,120 --> 00:03:53,240 Speaker 3: going to start coming online throughout twenty twenty six, the 70 00:03:53,280 --> 00:03:56,960 Speaker 3: first major data center build out that the AI firm 71 00:03:57,000 --> 00:03:57,680 Speaker 3: has taken on. 72 00:03:58,000 --> 00:04:03,880 Speaker 2: A direct stockmover's report from Bloomberg Radio. Check back with 73 00:04:03,960 --> 00:04:06,560 Speaker 2: us throughout the day for the latest roundup of companies 74 00:04:06,600 --> 00:04:09,720 Speaker 2: making news on Wall Street and for the latest market 75 00:04:09,760 --> 00:04:14,200 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. 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