Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,
Speaker 1: your roundup of companies making moves in the stock market
Speaker 1: harnessing the power of Bloomberg Data. Let's take a look
Speaker 1: at some of the stocks on the move today on
Speaker 1: Paul Swine alongside Norm Me.
Speaker 2: Linda, We're joined by Bloomberg's John Tucker. John, what do
Speaker 2: you got for us tech standout this morning? You want
Speaker 2: to guess what it is? Yes, Alphabet reporting a surgeon
Speaker 2: demand for the cloud and artificial intelligence services for the
Speaker 2: quarter just handed. So that's pleasing investors. They sent their
Speaker 2: shares up, even as the company said that capital spending
Speaker 2: for the year will be higher than expected. So third
Speaker 2: quarter sales, this is when you strip out the partner payouts,
Speaker 2: rose to eighty seven and a half billion dollars, the
Speaker 2: company's investing record amounts. Try to push progress in AI
Speaker 2: and infuse answers and assistance from the large language model
Speaker 2: that it has Gemini into some of the popular products,
Speaker 2: including search. So the company says capex for the year
Speaker 2: is going to be ninety one billion to ninety three
Speaker 2: billion dollars. That's up from the eighty five billion of
Speaker 2: earlier estimates. And what seems to set it apart from
Speaker 2: Microsoft and Meta is that Alphabet was able to prove
Speaker 2: two investors that the spending on artificial intelligence is actually
Speaker 2: paying off.
Speaker 1: And John just put that into context, ninety billion of
Speaker 1: capecs this year.
Speaker 2: In twenty twenty one, they had twenty five billion in CAPEX.
Speaker 2: So just scramp up enormous investors they've been clamoring for
Speaker 2: this evidence. Revenue from products built on Google's generative AI
Speaker 2: models here it is, grew more than two hundred percent
Speaker 2: from a year earlier. So the investment in infrastructure research
Speaker 2: is really paying off at this point.
Speaker 1: And we're releasing a divergent in divergence in terms of
Speaker 1: the equity market.
Speaker 2: Trade right now shares a rule up about eight percent,
Speaker 2: but Meta town more than ten percent right now. Yeah,
Speaker 2: so I mean it's pretty stark. Let's move on to food.
Speaker 2: Mexican Grill you will see, Paul, they are on occasion
Speaker 2: that's falling, cutting the full year outlook for the third
Speaker 2: time this year. It appears that diners are pulling back
Speaker 2: from eating out in the fast casual food category. The
Speaker 2: burrito chain now sees sales for the full year slipping
Speaker 2: into the low single digit range from a year earlier. Earlier,
Speaker 2: they projected that performance would be flat. By the way,
Speaker 2: in the third quarter, comp sales rising slightly, but it
Speaker 2: also fell short of Wall Street expectations. So the new CEO,
Speaker 2: Scott boat Royd, said, this was the analyst call. The
Speaker 2: consumer slowdown is really affecting our business in a meaningful way.
Speaker 2: Chipotli has fallen about thirty four percent. This is the
Speaker 2: stock with a five point seven percent rise for a
Speaker 2: comparable consumer discussionary companies in the S and P five
Speaker 2: hundred restaurants struggling with consumer reluctance to spend for the
Speaker 2: restaurant holding Paul, are you getting a bowl or a burrito?
Speaker 2: Taco's chicken? Yeah, that's how I roll.
Speaker 1: That's okay.
Speaker 2: Yeah, I got to try the taco Starbucks. On the
Speaker 2: other hand, the CEO there used to be the CEO
Speaker 2: at Chipotle. He says, you know, things are looking up.
Speaker 2: The comparable sales broke a string of comparable sales declines
Speaker 2: at Starbucks. By the way, Uh, if you go to
Speaker 2: Chipotle enough times, you'll need some weight loss medication. And
Speaker 2: Paul's what's your what's your Starbucks order? It's like a
Speaker 2: double short Noka double on Saturdays. Have no idea.
Speaker 1: I don't know either. Yeah.
Speaker 2: Anyway, Novo nordis making an unsolicited bid for Metsarah and
Speaker 2: this has sparked a real heated battle with Pisor. They're
Speaker 2: both trying to get their hands on uh they were,
Speaker 2: Metsarah's weight loss drug in order to gain some of
Speaker 2: the lost ground in this booming, cut throat market. Novoe
Speaker 2: offering to buy the company for at least six and
Speaker 2: a half billion. We're trying to trump an earlier agreed
Speaker 2: upon deal with Pfizer. Met Sarah called the new offer
Speaker 2: superior to the previous one from Pfiser, which had actually
Speaker 2: accepted just last month. Pfiser counters that Novo's attempt to
Speaker 2: derail the deal is reckless and an attempt to abuse
Speaker 2: its dominant market positions. Actually this morning making some what
Speaker 2: sounds like some legal arguments.
Speaker 1: This stock Moover's report from Bloomberg Radio. Check back with
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