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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 mostly down morning for stocks broadly. This morning, we get a couple of names moving lower on earnings, including Applied Digital.
Good morning, Good morning, Nathan, Data center operator. Applied Digital is down over four percent in the pre market ticker APLD as it after it reported third quarter results with gross margins missing estimates. The company took in one hundred and twenty seven million dollars for the period, fifty million dollars more than estimates, but it's paying more as it grows. Nearly one hundred and forty million dollars were spent in operating expenses. A large portion of that was thirty nine
billion dollars in stock based compensation alone. That was off of increased headcount and performance rewards. The company also saw an overall cash outflow of over seven hundred million dollars six times and times analysts outlook On the positive side, adjusted earnings per share beat, and the company noted accelerating hyperscaler demand not enough to offset the bearish move this morning.
Okay, we also heard from Constellation brands. Are people drinking Dan?
Well?
Constellations actually been holding up better, but even they are struggling. The shares underticker STZ are down nearly one percent in pre market as the company projected softer than expected growth for its beer business this year. That's the company behind Corona and Modelo especial. It sees organic beer sales somewhere between one percent up one percent down, but Wall Street
was looking for two percent growth. That shows that Modello and Corona are struggling to side step a broader decline, and beer Constellation has generally been holding it more strongly. As I mentioned, Modello passed bud Light as the top selling beer in the US. That's according to Zarkana. So people are still drinking a Medelo, but maybe just not quite as much.
All right, Well, we did get some news from Amazon this morning. In the CEO letter, what do we need to know?
That's right? So, Andy Jasse wrote to shareholders this morning. He highlighted the company's chip business, saying its run rate is now over twenty billion dollars and growing at triple percentage on an annual basis. That has shares flat this morning, but they were down before this letter came back, so they have paired some of those losses. He noted the company is willing to endure short term free cash flow headwinds for substantial long term growth and that spending is
heavy on the capex side. Two hundred billion dollars approximately will be spent this year, and Jasse noted that that monetization will likely happen in twenty twenty seven and twenty twenty eight, so giving up a little bit now looking for longer growth.
And finally, Dan, we got a headline from Tesla. Apparently Elon Musk's company is still in the EV business.
Apparently it is. That's according to Reuter's which is reporting that Tesla's developing a new compact suv and they were citing people familiar. They are said to have contacted suppliers in recent weeks to discuss details. That has shares again about flat, but they were down before this news came out.
Sources said that the SUV would be produced in China, and this follows earlier this year, where Tesla discontinued production of both the Model S and Model X, although those commanded high price tags.
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.