WEBVTT - Disney Falls Premarket; Cisco Systems Surges; Anthropic Commits $50B for US Data Centers

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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>Let's take a look at some stocks in the move today.

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<v Speaker 1>I'm Tom Keen with Paul Sweeney and Bloomberg's John Tucker.

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<v Speaker 3>So Disney reporting sales. The sales fell short of expectations,

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<v Speaker 3>and big budget films like the new Avatar picture that's

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<v Speaker 3>going to weigh on results. Revenue for the fourth quarter

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<v Speaker 3>a little change at twenty two and a half billion dollars.

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<v Speaker 3>The earnings a dollar eleven a share, So that's a beat.

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<v Speaker 3>Disney's entertainment division faces a number of challenges on several fronts,

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<v Speaker 3>streaming films and TV. They predict three hundred and seventy

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<v Speaker 3>five million dollars in operating income from online video in

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<v Speaker 3>the first quarter. That's higher for the business, higher profit,

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<v Speaker 3>but Wall Street was expecting more. You also have these

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<v Speaker 3>expenses tied to z Utopia two and Avatar fire and

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<v Speaker 3>ash that's going to reduce earnings by four hundred million dollars.

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<v Speaker 3>I got to wonder why they're releasing Avatar. What December seventeenth,

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<v Speaker 3>I think, yeah, you do not have to capture a lot.

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<v Speaker 3>I know, I don't get it. Usually they do it

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<v Speaker 3>right before Thanksgiving. Then you have the theme parking, cruise

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<v Speaker 3>unit experiences. They're gonna have one hundred and fifty million

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<v Speaker 3>dollars in plant expenses in the first fiscal quarter, new

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<v Speaker 3>ships and dock work for the.

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<v Speaker 4>On they're doing the launching had two or three new ships,

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<v Speaker 4>and each of one of those ships is like a

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<v Speaker 4>billion dollars.

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<v Speaker 1>I went back and look, you can do this in

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<v Speaker 1>the Bloomberg A ten year per year return of Disney

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<v Speaker 1>is one percent per year. Yep. Is it a failed

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<v Speaker 1>blue chip?

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<v Speaker 4>I mean, do we It's a tough business, and it's

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<v Speaker 4>a business that's dealing with all this disruption from the Internet, Netflix.

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<v Speaker 4>The whole industry has been on spack for a decade.

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<v Speaker 3>How much competition are they facing from like comcasts for

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<v Speaker 3>the entertainment division.

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<v Speaker 4>Yeah, they are, they are. I mean, it's it's competition.

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<v Speaker 4>But the theme parts are just a rock steady business,

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<v Speaker 4>thirteen fourteen to fifty percent profit growth every single quarter.

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<v Speaker 3>Okay, onto the network equipment giant Cisco Systems boosting the

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<v Speaker 3>forecast showing progress in their effort to capture more AI spending.

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<v Speaker 3>The company this is the top maker machines that run

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<v Speaker 3>computer networks and the Internet. They now expect sales of

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<v Speaker 3>as much as sixty one billion dollars in the fiscal

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<v Speaker 3>year that ends wedd in July. That's about a billion

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<v Speaker 3>more than they previously expected, higher than Wall Street estimates.

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<v Speaker 3>Cisco also increasing its earnings forecast, which again top analyst predictions.

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<v Speaker 3>The CEO there, Chuck Robbins, is the need for secured

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<v Speaker 3>networking in AI is helping fuel demand and let me

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<v Speaker 3>finish up with anthropic not on a lot of people's radar,

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<v Speaker 3>but it's kind of interesting they spend they're going to

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<v Speaker 3>spend fifty billion dollars to build custom data centers for

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<v Speaker 3>our official intelligence in a number of US locations, including

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<v Speaker 3>Texas and New York. I have yet to hear any

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<v Speaker 3>political pushback on a significant scale about the AI spending

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<v Speaker 3>in places like particularly in New York and Texas, where

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<v Speaker 3>you do have significant power problems because as you know,

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<v Speaker 3>they have an independent gridexas Texas, they do they're going

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<v Speaker 3>to be competing with the likes of US for electricity demand,

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<v Speaker 3>and the.

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<v Speaker 1>Guests that we've got in that are hugely qualified and

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<v Speaker 1>this may clear the grid and the capital cost of

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<v Speaker 1>the transmission. YEP is the key item for the pros.

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<v Speaker 4>Yeah, that's going to be the gating issue. That's the

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<v Speaker 4>gating issue.

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<v Speaker 1>But still the gating issue for the politicians is our

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<v Speaker 1>electric bills.

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<v Speaker 3>Yeah, so anthropics as these news sites they say, are

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<v Speaker 3>going to start coming online throughout twenty twenty six, the

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<v Speaker 3>first major data center build out that the AI firm

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<v Speaker 3>has taken on.

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