1 00:00:02,520 --> 00:00:09,960 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report, 2 00:00:10,280 --> 00:00:13,520 Speaker 1: your roundup of companies making moves in the stock market 3 00:00:13,680 --> 00:00:16,960 Speaker 1: harnessing the power of Bloomberg Data. Let's take a look 4 00:00:16,960 --> 00:00:19,479 Speaker 1: at some of the stocks on the move today on 5 00:00:19,520 --> 00:00:20,840 Speaker 1: Paul Swine alongside Norm Me. 6 00:00:20,800 --> 00:00:23,119 Speaker 2: Linda, We're joined by Bloomberg's John Tucker. John, what do 7 00:00:23,160 --> 00:00:26,200 Speaker 2: you got for us tech standout this morning? You want 8 00:00:26,200 --> 00:00:29,640 Speaker 2: to guess what it is? Yes, Alphabet reporting a surgeon 9 00:00:29,680 --> 00:00:33,760 Speaker 2: demand for the cloud and artificial intelligence services for the 10 00:00:33,840 --> 00:00:37,400 Speaker 2: quarter just handed. So that's pleasing investors. They sent their 11 00:00:37,440 --> 00:00:40,640 Speaker 2: shares up, even as the company said that capital spending 12 00:00:40,800 --> 00:00:44,440 Speaker 2: for the year will be higher than expected. So third 13 00:00:44,479 --> 00:00:48,000 Speaker 2: quarter sales, this is when you strip out the partner payouts, 14 00:00:48,360 --> 00:00:52,320 Speaker 2: rose to eighty seven and a half billion dollars, the 15 00:00:52,320 --> 00:00:55,480 Speaker 2: company's investing record amounts. Try to push progress in AI 16 00:00:56,200 --> 00:01:00,240 Speaker 2: and infuse answers and assistance from the large language model 17 00:01:00,280 --> 00:01:03,800 Speaker 2: that it has Gemini into some of the popular products, 18 00:01:03,880 --> 00:01:06,880 Speaker 2: including search. So the company says capex for the year 19 00:01:06,920 --> 00:01:08,800 Speaker 2: is going to be ninety one billion to ninety three 20 00:01:08,840 --> 00:01:11,840 Speaker 2: billion dollars. That's up from the eighty five billion of 21 00:01:12,040 --> 00:01:14,920 Speaker 2: earlier estimates. And what seems to set it apart from 22 00:01:15,160 --> 00:01:18,880 Speaker 2: Microsoft and Meta is that Alphabet was able to prove 23 00:01:18,920 --> 00:01:23,839 Speaker 2: two investors that the spending on artificial intelligence is actually 24 00:01:24,000 --> 00:01:24,559 Speaker 2: paying off. 25 00:01:24,640 --> 00:01:26,840 Speaker 1: And John just put that into context, ninety billion of 26 00:01:26,880 --> 00:01:27,960 Speaker 1: capecs this year. 27 00:01:28,280 --> 00:01:30,679 Speaker 2: In twenty twenty one, they had twenty five billion in CAPEX. 28 00:01:30,760 --> 00:01:35,600 Speaker 2: So just scramp up enormous investors they've been clamoring for 29 00:01:35,840 --> 00:01:40,120 Speaker 2: this evidence. Revenue from products built on Google's generative AI 30 00:01:40,319 --> 00:01:43,600 Speaker 2: models here it is, grew more than two hundred percent 31 00:01:43,640 --> 00:01:48,000 Speaker 2: from a year earlier. So the investment in infrastructure research 32 00:01:48,880 --> 00:01:50,640 Speaker 2: is really paying off at this point. 33 00:01:50,680 --> 00:01:53,600 Speaker 1: And we're releasing a divergent in divergence in terms of 34 00:01:53,640 --> 00:01:54,760 Speaker 1: the equity market. 35 00:01:54,760 --> 00:01:57,240 Speaker 2: Trade right now shares a rule up about eight percent, 36 00:01:57,280 --> 00:02:00,280 Speaker 2: but Meta town more than ten percent right now. Yeah, 37 00:02:00,440 --> 00:02:03,920 Speaker 2: so I mean it's pretty stark. Let's move on to food. 38 00:02:06,200 --> 00:02:09,120 Speaker 2: Mexican Grill you will see, Paul, they are on occasion 39 00:02:10,200 --> 00:02:12,840 Speaker 2: that's falling, cutting the full year outlook for the third 40 00:02:12,919 --> 00:02:16,200 Speaker 2: time this year. It appears that diners are pulling back 41 00:02:16,240 --> 00:02:21,000 Speaker 2: from eating out in the fast casual food category. The 42 00:02:21,000 --> 00:02:24,119 Speaker 2: burrito chain now sees sales for the full year slipping 43 00:02:24,520 --> 00:02:28,160 Speaker 2: into the low single digit range from a year earlier. Earlier, 44 00:02:28,160 --> 00:02:30,880 Speaker 2: they projected that performance would be flat. By the way, 45 00:02:31,240 --> 00:02:34,240 Speaker 2: in the third quarter, comp sales rising slightly, but it 46 00:02:34,320 --> 00:02:38,320 Speaker 2: also fell short of Wall Street expectations. So the new CEO, 47 00:02:38,400 --> 00:02:41,680 Speaker 2: Scott boat Royd, said, this was the analyst call. The 48 00:02:41,760 --> 00:02:46,840 Speaker 2: consumer slowdown is really affecting our business in a meaningful way. 49 00:02:47,639 --> 00:02:50,120 Speaker 2: Chipotli has fallen about thirty four percent. This is the 50 00:02:50,120 --> 00:02:54,160 Speaker 2: stock with a five point seven percent rise for a 51 00:02:54,360 --> 00:02:58,160 Speaker 2: comparable consumer discussionary companies in the S and P five 52 00:02:58,240 --> 00:03:02,880 Speaker 2: hundred restaurants struggling with consumer reluctance to spend for the 53 00:03:02,960 --> 00:03:06,480 Speaker 2: restaurant holding Paul, are you getting a bowl or a burrito? 54 00:03:08,240 --> 00:03:11,480 Speaker 2: Taco's chicken? Yeah, that's how I roll. 55 00:03:11,560 --> 00:03:12,000 Speaker 1: That's okay. 56 00:03:12,120 --> 00:03:15,280 Speaker 2: Yeah, I got to try the taco Starbucks. On the 57 00:03:15,320 --> 00:03:18,000 Speaker 2: other hand, the CEO there used to be the CEO 58 00:03:18,040 --> 00:03:20,520 Speaker 2: at Chipotle. He says, you know, things are looking up. 59 00:03:20,919 --> 00:03:24,920 Speaker 2: The comparable sales broke a string of comparable sales declines 60 00:03:24,960 --> 00:03:27,320 Speaker 2: at Starbucks. By the way, Uh, if you go to 61 00:03:27,400 --> 00:03:31,799 Speaker 2: Chipotle enough times, you'll need some weight loss medication. And 62 00:03:33,000 --> 00:03:34,960 Speaker 2: Paul's what's your what's your Starbucks order? It's like a 63 00:03:35,040 --> 00:03:38,280 Speaker 2: double short Noka double on Saturdays. Have no idea. 64 00:03:38,520 --> 00:03:41,320 Speaker 1: I don't know either. Yeah. 65 00:03:41,360 --> 00:03:46,560 Speaker 2: Anyway, Novo nordis making an unsolicited bid for Metsarah and 66 00:03:46,600 --> 00:03:49,600 Speaker 2: this has sparked a real heated battle with Pisor. They're 67 00:03:49,600 --> 00:03:51,800 Speaker 2: both trying to get their hands on uh they were, 68 00:03:52,040 --> 00:03:55,040 Speaker 2: Metsarah's weight loss drug in order to gain some of 69 00:03:55,040 --> 00:03:59,120 Speaker 2: the lost ground in this booming, cut throat market. Novoe 70 00:03:59,160 --> 00:04:01,440 Speaker 2: offering to buy the company for at least six and 71 00:04:01,440 --> 00:04:04,480 Speaker 2: a half billion. We're trying to trump an earlier agreed 72 00:04:04,560 --> 00:04:07,640 Speaker 2: upon deal with Pfizer. Met Sarah called the new offer 73 00:04:08,040 --> 00:04:11,760 Speaker 2: superior to the previous one from Pfiser, which had actually 74 00:04:12,280 --> 00:04:16,560 Speaker 2: accepted just last month. Pfiser counters that Novo's attempt to 75 00:04:16,600 --> 00:04:19,919 Speaker 2: derail the deal is reckless and an attempt to abuse 76 00:04:19,960 --> 00:04:25,000 Speaker 2: its dominant market positions. Actually this morning making some what 77 00:04:25,120 --> 00:04:28,240 Speaker 2: sounds like some legal arguments. 78 00:04:29,120 --> 00:04:33,160 Speaker 1: This stock Moover's report from Bloomberg Radio. Check back with 79 00:04:33,240 --> 00:04:35,800 Speaker 1: us throughout the day for the latest roundup of companies 80 00:04:35,880 --> 00:04:38,960 Speaker 1: making news on Wall Street and for the latest market 81 00:04:39,000 --> 00:04:43,440 Speaker 1: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 82 00:04:43,560 --> 00:04:47,080 Speaker 1: Bloomberg dot com, and on Applecarplay, and Android Auto with 83 00:04:47,120 --> 00:04:48,599 Speaker 1: the Bloomberg Business app.