WEBVTT - Alphabet Rises while Chipotle Sinks; Metsera Acquisition Proposal

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market

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<v Speaker 1>harnessing the power of Bloomberg Data. Let's take a look

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<v Speaker 1>at some of the stocks on the move today on

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<v Speaker 1>Paul Swine alongside Norm Me.

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<v Speaker 2>Linda, We're joined by Bloomberg's John Tucker. John, what do

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<v Speaker 2>you got for us tech standout this morning? You want

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<v Speaker 2>to guess what it is? Yes, Alphabet reporting a surgeon

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<v Speaker 2>demand for the cloud and artificial intelligence services for the

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<v Speaker 2>quarter just handed. So that's pleasing investors. They sent their

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<v Speaker 2>shares up, even as the company said that capital spending

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<v Speaker 2>for the year will be higher than expected. So third

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<v Speaker 2>quarter sales, this is when you strip out the partner payouts,

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<v Speaker 2>rose to eighty seven and a half billion dollars, the

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<v Speaker 2>company's investing record amounts. Try to push progress in AI

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<v Speaker 2>and infuse answers and assistance from the large language model

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<v Speaker 2>that it has Gemini into some of the popular products,

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<v Speaker 2>including search. So the company says capex for the year

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<v Speaker 2>is going to be ninety one billion to ninety three

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<v Speaker 2>billion dollars. That's up from the eighty five billion of

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<v Speaker 2>earlier estimates. And what seems to set it apart from

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<v Speaker 2>Microsoft and Meta is that Alphabet was able to prove

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<v Speaker 2>two investors that the spending on artificial intelligence is actually

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<v Speaker 2>paying off.

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<v Speaker 1>And John just put that into context, ninety billion of

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<v Speaker 1>capecs this year.

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<v Speaker 2>In twenty twenty one, they had twenty five billion in CAPEX.

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<v Speaker 2>So just scramp up enormous investors they've been clamoring for

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<v Speaker 2>this evidence. Revenue from products built on Google's generative AI

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<v Speaker 2>models here it is, grew more than two hundred percent

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<v Speaker 2>from a year earlier. So the investment in infrastructure research

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<v Speaker 2>is really paying off at this point.

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<v Speaker 1>And we're releasing a divergent in divergence in terms of

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<v Speaker 1>the equity market.

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<v Speaker 2>Trade right now shares a rule up about eight percent,

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<v Speaker 2>but Meta town more than ten percent right now. Yeah,

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<v Speaker 2>so I mean it's pretty stark. Let's move on to food.

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<v Speaker 2>Mexican Grill you will see, Paul, they are on occasion

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<v Speaker 2>that's falling, cutting the full year outlook for the third

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<v Speaker 2>time this year. It appears that diners are pulling back

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<v Speaker 2>from eating out in the fast casual food category. The

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<v Speaker 2>burrito chain now sees sales for the full year slipping

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<v Speaker 2>into the low single digit range from a year earlier. Earlier,

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<v Speaker 2>they projected that performance would be flat. By the way,

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<v Speaker 2>in the third quarter, comp sales rising slightly, but it

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<v Speaker 2>also fell short of Wall Street expectations. So the new CEO,

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<v Speaker 2>Scott boat Royd, said, this was the analyst call. The

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<v Speaker 2>consumer slowdown is really affecting our business in a meaningful way.

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<v Speaker 2>Chipotli has fallen about thirty four percent. This is the

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<v Speaker 2>stock with a five point seven percent rise for a

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<v Speaker 2>comparable consumer discussionary companies in the S and P five

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<v Speaker 2>hundred restaurants struggling with consumer reluctance to spend for the

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<v Speaker 2>restaurant holding Paul, are you getting a bowl or a burrito?

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<v Speaker 2>Taco's chicken? Yeah, that's how I roll.

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<v Speaker 1>That's okay.

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<v Speaker 2>Yeah, I got to try the taco Starbucks. On the

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<v Speaker 2>other hand, the CEO there used to be the CEO

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<v Speaker 2>at Chipotle. He says, you know, things are looking up.

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<v Speaker 2>The comparable sales broke a string of comparable sales declines

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<v Speaker 2>at Starbucks. By the way, Uh, if you go to

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<v Speaker 2>Chipotle enough times, you'll need some weight loss medication. And

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<v Speaker 2>Paul's what's your what's your Starbucks order? It's like a

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<v Speaker 2>double short Noka double on Saturdays. Have no idea.

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<v Speaker 1>I don't know either. Yeah.

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<v Speaker 2>Anyway, Novo nordis making an unsolicited bid for Metsarah and

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<v Speaker 2>this has sparked a real heated battle with Pisor. They're

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<v Speaker 2>both trying to get their hands on uh they were,

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<v Speaker 2>Metsarah's weight loss drug in order to gain some of

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<v Speaker 2>the lost ground in this booming, cut throat market. Novoe

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<v Speaker 2>offering to buy the company for at least six and

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<v Speaker 2>a half billion. We're trying to trump an earlier agreed

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<v Speaker 2>upon deal with Pfizer. Met Sarah called the new offer

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<v Speaker 2>superior to the previous one from Pfiser, which had actually

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<v Speaker 2>accepted just last month. Pfiser counters that Novo's attempt to

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<v Speaker 2>derail the deal is reckless and an attempt to abuse

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<v Speaker 2>its dominant market positions. Actually this morning making some what

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<v Speaker 2>sounds like some legal arguments.

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