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I'm Carol Master, a longer term stat of it. Let's get to some stocks on the move. Joining us to do that, Bloomberg News cross at reporter Janiza Sikova. She is in the house and she's got to start with Amazon because this went under pressure in the aftermarket.
Yeah, after a very tough day for tech stock, extending trade is not bringing too much relief. Looking at Amazon, it's down more than nine percent. The thicker, of course, is AMZN. It's coming off the earning supports. Company plans to spend two hundred billion this year on data centers, chips and other equipment. Everyone has been worried about AI spending, so that piece of information wasn't taken quite well. Everyone
is wondering how much this will weigh on profits. And the number Amazon gave is that forecasts for operating income in the current quarter of about sixteen billion to twenty one billion, which is significantly lower than what the analysts estimated. And you can imagine that this pretty strong reaction nearly double digits now is coming on top of that, we also sentiment is pretty fragile. Microsoft and Alphabet reporter results earlier also spent heavily, also saw a lot of spending.
Microsoft ended the day five percent lower. A lot of pressure there. Amazona is doing job cuts, for example. The total number of job cuts around thirty thousands is October. But yet the stock is under a lot of pressure, and we can see that investors are getting pretty worried about AI spending and the punishment is pretty rough. Yeah.
Kind of interesting though, because Microsoft, of course reported last week they did get a downgrade, a rare downgrade on the street, but the street is overwhelmingly still bullish on this name. And then of course we had Alphabet reporting in the Wednesday after market and we did see that stock under pressure today, but it also finished off its loads of the session. So it's kind of interesting kind of how we see these names react. Let's get to
another one in the aftermarket. We're talking about Strategy.
Yeah, Strategy definitely has been at the center of this sell off. The company was already down thirty percent ear today before reporting the earning today. The ticker is MSTR in extended trading. It's about down about four percent. What we heard from the earnings announcement is that the company had a net loss of more than twelve billion in the fourth quarter. Obviously, the company has this strategy of hoarding bitcoin, and the bitcoin price has continued to tumble.
It's about sixty three thousand now, so that has definitely weigh on the company. It's under so much pressure and it's kind of at the center of this speculative sale off. Shares traded above the value of it's holding for quite some time, but now and the company continued to buy bitcoin. This is the first time they don't know, is that So it's definitely thinks are definitely changing. That's it. Everyone
is asking whether they're going to sell. The company faces no margin call and it has about more than two billions in cash. Okay, maybe the answer is no so far.
And the stock moved before the earnings came out. It was down seventeen percent today. Yesterday it was down more than three percent. It was down, you know, two and a half percent the day before. As bitcoin has fallen. It doesn't often move with much with earnings because it's such It's like people know the price that the levered play on bitcoin. But what we want to know is, yeah, are you gonna have to sell bitcoin? What are you gonna use that cash?
Is that reserve?
Don't you want to ask more?
Bitcoin?
Is that reserved much?
Are those reserves in cash? Are they cash? I mean in crypto or no?
I think it's actual cash?
Okay, interesting? Cool, I'm just saying cash was old school. Cash can be king even with a crypto company. All right, Just thirty seconds to.
Private credit and private equity, which your house we called in the sale off ours management to both thir they the company is down twenty four percent ear today. Private asset firms, you know, that's been the main worry that they have so much exposure to software companies, as Ris Management is saying that their exposure is relatively minimal six percent of total assets. We've seen some predictions that the BCDs are have explosure about twenty percent of software company
clearly says that's not a problem for them. The earnings report was pretty strong. Assets are at record six hundred and twenty two billion, but cleared investors are not pursued aided and the climate for private credit and private equity is not what it used to be just a few.
Minutes back the Stock mover's report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.