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: Let's take a look at some stocks in the move today.
Speaker 1: I'm Tom Keen with Paul Sweeney and Bloomberg's John Tucker.
Speaker 3: So Disney reporting sales. The sales fell short of expectations,
Speaker 3: and big budget films like the new Avatar picture that's
Speaker 3: going to weigh on results. Revenue for the fourth quarter
Speaker 3: a little change at twenty two and a half billion dollars.
Speaker 3: The earnings a dollar eleven a share, So that's a beat.
Speaker 3: Disney's entertainment division faces a number of challenges on several fronts,
Speaker 3: streaming films and TV. They predict three hundred and seventy
Speaker 3: five million dollars in operating income from online video in
Speaker 3: the first quarter. That's higher for the business, higher profit,
Speaker 3: but Wall Street was expecting more. You also have these
Speaker 3: expenses tied to z Utopia two and Avatar fire and
Speaker 3: ash that's going to reduce earnings by four hundred million dollars.
Speaker 3: I got to wonder why they're releasing Avatar. What December seventeenth,
Speaker 3: I think, yeah, you do not have to capture a lot.
Speaker 3: I know, I don't get it. Usually they do it
Speaker 3: right before Thanksgiving. Then you have the theme parking, cruise
Speaker 3: unit experiences. They're gonna have one hundred and fifty million
Speaker 3: dollars in plant expenses in the first fiscal quarter, new
Speaker 3: ships and dock work for the.
Speaker 4: On they're doing the launching had two or three new ships,
Speaker 4: and each of one of those ships is like a
Speaker 4: billion dollars.
Speaker 1: I went back and look, you can do this in
Speaker 1: the Bloomberg A ten year per year return of Disney
Speaker 1: is one percent per year. Yep. Is it a failed
Speaker 1: blue chip?
Speaker 4: I mean, do we It's a tough business, and it's
Speaker 4: a business that's dealing with all this disruption from the Internet, Netflix.
Speaker 4: The whole industry has been on spack for a decade.
Speaker 3: How much competition are they facing from like comcasts for
Speaker 3: the entertainment division.
Speaker 4: Yeah, they are, they are. I mean, it's it's competition.
Speaker 4: But the theme parts are just a rock steady business,
Speaker 4: thirteen fourteen to fifty percent profit growth every single quarter.
Speaker 3: Okay, onto the network equipment giant Cisco Systems boosting the
Speaker 3: forecast showing progress in their effort to capture more AI spending.
Speaker 3: The company this is the top maker machines that run
Speaker 3: computer networks and the Internet. They now expect sales of
Speaker 3: as much as sixty one billion dollars in the fiscal
Speaker 3: year that ends wedd in July. That's about a billion
Speaker 3: more than they previously expected, higher than Wall Street estimates.
Speaker 3: Cisco also increasing its earnings forecast, which again top analyst predictions.
Speaker 3: The CEO there, Chuck Robbins, is the need for secured
Speaker 3: networking in AI is helping fuel demand and let me
Speaker 3: finish up with anthropic not on a lot of people's radar,
Speaker 3: but it's kind of interesting they spend they're going to
Speaker 3: spend fifty billion dollars to build custom data centers for
Speaker 3: our official intelligence in a number of US locations, including
Speaker 3: Texas and New York. I have yet to hear any
Speaker 3: political pushback on a significant scale about the AI spending
Speaker 3: in places like particularly in New York and Texas, where
Speaker 3: you do have significant power problems because as you know,
Speaker 3: they have an independent gridexas Texas, they do they're going
Speaker 3: to be competing with the likes of US for electricity demand,
Speaker 3: and the.
Speaker 1: Guests that we've got in that are hugely qualified and
Speaker 1: this may clear the grid and the capital cost of
Speaker 1: the transmission. YEP is the key item for the pros.
Speaker 4: Yeah, that's going to be the gating issue. That's the
Speaker 4: gating issue.
Speaker 1: But still the gating issue for the politicians is our
Speaker 1: electric bills.
Speaker 3: Yeah, so anthropics as these news sites they say, are
Speaker 3: going to start coming online throughout twenty twenty six, the
Speaker 3: first major data center build out that the AI firm
Speaker 3: has taken on.
Speaker 2: A direct stockmover's report from Bloomberg Radio. Check back with
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