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The Stock Movers Report, your roundup of companies making moves in the stock market. Harnessing the power of Bloomberg Data.
Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's Dan Curtis. On a morning we were seeing the futures turn around now Dan, but Amazon continues to fall on big plans, and I mean big for AI spending.
Good morning, Good morning. Two hundred billion dollars. That's all I have in my notes for the morning, but I think it'll take us through the entire All you need, that's all you need. I mean, I will take it. Two hundred billion dollars in capex. That's the big number coming out of the Amazon results after hours. Well, that's how much they are going to be spending this year on AI. We've been talking about this all week, all
these hyperscal are spending a lot of money. Amazon ending Friday or ending the week with a big number, biggest one so far. The estimate was one hundred and fifty billion dollars, so a lot more spending than was expected. Money will go mainly towards the AI play as all these companies are spending and that's coming with operating income guidance for the year. The high end of that was twenty one point five billion dollars. That was below Wall Street estimate. So this extra spending is going to be
hitting the bottom line a little bit. Markets are not appreciating that fact. Seven percent down in the pre market right now. As for the fourth quarter, the top line beat. Earnings missed. Strong results from the AI play Amazon Web Services. That's the AI division, twenty four percent growth, largest growth in three years. It also has a backlog of nearly two hundred and fifty billion dollars, so that's business down
the pipeline. So some good news on the AI, but they are spending a lot of money to build it.
Out and the earnings continue. This morning, we're just watching results cross from under Armour.
That's right, these crossing the crossing the terminal right now. Shares are up of under Armour about eight percent in pre market. Overall, it looks like a beat. Third quarter earnings came in positive at nine cents. Wall Street was expecting a loss for the quarter. That's a positive. The estimates also coming out positively, so that's getting some bullish optimism in the stock this morning. Now five percent whipsawing a bit, but in the green.
And we did get results as well from Stilantis. These are not being taken kindly as the pullback from EV's continues.
That's right, and it's going to cost them twenty six billion dollars. That's the charges that they announced in that pullback from evs Stilantis. They're cancelingv projects, they're reducing production. They have to still compensate some suppliers because there's contracts outstanding. The company has stopped making several plug in models. It's struggling with sales and struggling with the high cost of the EV market. Company got a new CEO last year,
so this is part of that turnaround. Previous CEO was all in on EV's. He was looking for fully EV in Europe by twenty thirty. So this is just the copany trying to change course under new leadership. It follows in the wake of Ford, which announced nineteen and a half billion dollars in charges in December, and GM logged seven point six billion dollars in write down so far around this trade that stocked down twenty six percent in the pre market now, so really taking it on the chin.
Wow.
And finally let's talk about Reddit. Looks like their earnings are getting received pretty well.
Yeah, I was reading about this on the forum. They're up eleven percent. The current quarter sales are projected to be around six hundred million dollars. That topped estimates fourth quarter top and bottom line beats. That was driven by sixty seven percent growth in US sales nearly eighty percent revenue growth internationally. This is all AD driven that he's been able to expand that AD business, so lots of growth both domestically and internationally.
This Stock Movers 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.