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This is the closing bell on this stock movers report the company's making moves at the close of US trading with Carol Masser, Tim Stenovak, Romain Bostik, and Scarlet Foo.
I'm looking at the S and P five hundred most names in that index, folks lower today, three hundred and seventy eight, losing some ground today, Katie one hundred and twenty four to the f side and one unchanged.
Yeah, super narrow there. Let's take a look at the sector, and let's take a look at the circle and see what our friend is saying. There, you can see the tech did manage to finish in the green actually as a sector overall, up by about one percent. All eyes on Nvidia Communication Services, which is pretty much tech in disguise, also rallying strong today. Energy industrials catching a little bit of a bid. What didn't do too well you would guess this would be the case. Real estate down by
two point seven percent. We saw a big pop in yields as jerown Palace speaking, and that certainly hit that setter pretty hard, all.
Right, real quickly. Nvidia, I got to mention five trillion dollar market cap today, the stock up as much as five and a half percent earlier in the day, still finishing with a gain of about three percent historic five trillion dollar market cap. We know we got a lot of big headlines from the company and it's CEO Jensen yesterday just the AI spend, the AI frenzy, and we know how important this name is certainly to the bull
market that we've seen. With a fifty percent gain this year through yesterday's close, the stock is single handedly responsible for nearly a fifth of the S and P five hundred's index seventy percent advance this year, so we know it's been really driving the trade. Taradine just got to mention this was definitely a top gainer in the S and P five hundred of twenty percent in today's session. I believe it's a record close. It's a semi manufacturing company.
Third quarter results beat expectations, and it gave an outlook well ahead of analyst consensus. It also named Michelle Turner its chief financial officer effective November. That stock up forty percent. Caterpillar up eleven percent, also now performer today.
Is this an AI play? Now? I'm old its Caterpillar an AI play. No, isn't it nice?
We got alphabet lets all right?
Well, speaking of AI, Alphabet earnings are out. EPs coming in looks like a pretty big beat. Two dollars and eighty seven cents a share for the most recent quarter. The street was looking for two dollars and twenty six cents revenue in the most recent quarter. Also a beat one hundred and two billion dollars in change. The street on average was looking for roughly about ninety nine point
nine billion dollars. The company also says that it ended the quarter that Google Cloud, I should say, ended the quarter Get this, guys, one hundred and fifty five billion dollar backlog.
Yeah, certainly raises the stakes to for Amazon, a lot of focus on that cloud business. You can see Alphabet shares deciding what to do, moving higher right now. I will say tim that the bar was high for Alphabet specifically, you think about where the stock has gone here today, up by forty five percent, but clearly you can see investors pars through and deciding what to do.
Yeah, bouncing around a little bit, but firmly hire now about three percent. Sunder Pitshai, the CEO out saying that the company had a terrific quarter, double digit growth across every major part of the business, calling out the first
ever one hundred billion dollar quarter. He also called out Gemini now processes seven billion tokens per minute and alludes to the full stock approach to AI at Google that's delivering strong momentum, shipping its speed, including the global rollout of aio reviews in AI mode in search in record time. Shares now up by about wow four percent.
All right, from one hyperscaler to another week. Go, let's go to Microsoft, folks, just crossing with its numbers. First quarter intelligence cloud revenue, this is what we care about. Thirty point nine billion. The estimate on the street was thirty point eighteen billion, so it looks like it's coming in line. First quarter Azure also important another cloud revenue
X currency up thirty nine percent. That beats the estimate of a gain of about thirty seven point one percent, and first quarter revenue I cain of beat seventy seven points sixty seven billion dollars. The estimate on the street remain seventy five point fifty five billion, and yet we're seeing the stock down about four percent here in the after market, So we'll look for some more color on this one.
Yeah, some of these numbers, well, certainly a beat with regards to the average of analysts estimates that were public. It looks like they did come in below some of the whisper estimate estimates that Bloomberg had reported on. But
it gets to this idea as well. And we always have to wait with Microsoft to actually get any sort of forward guidance a little bit later, but this idea of exactly what is in the pipeline that they can actually sort of deliver or at least a flag to investors, that could sort of be a signal here that not just the spend on Microsoft's part, but more importantly, the reciprocity is actually still there. Yeah.
Absolutely, Maybe we'll get some more detail about the pipeline when it comes to the earnings call. But you can see again those shares holding the after hours decline of about four percent, And we know it was a big week for Microsoft with that open AI restructuring. Microsoft of course securing a stake here when it comes to the future, at least through twenty thirty two.
Tim all right, I'm taking a look at Starbucks ticker SBUX, that company out with earnings as we speak. Fourth quarter China comp sales up two percent. The estimate was for two point one six percent. Fourth quarter comp sales up one percent. The beat estimates of just about negative half a percentage point. Fourth quarter net revenue coming in above estimates at nine point six billion dollars. Fourth quarter adjusted innings per share coming in shy of estimates at fifty
two cents. Fourth quarter North America comp sales they were flat. The estimate was for a decline of half a percentage point. Fourth quarter adjusted operating margin up nine point of nine point four percent. The estimate was for ten point two percent, so that came in below estimates. Starbucks shares up about one point six percent now in the after hours.
All right, so let's get to medic because we're seeing the stock drop about three point nine percent here in the after market meta with the outlooks. He's fourth quarter revenue fifty six to fifty nine billion. The estimate on the street is fifty seven point thirty eight billion. Fourth
quarter twenty twenty five are fourth quarter revenue. Let me go there, because we're heading that one here at the Bloomberg Meta, seeing fourth quarter revenue fifty six to fifty nine billion estimate fifty seven point thirty eight billion to get in the stock down about five percent. Sees fourth quarter total revenue to be in the range again a fifty six point fifty nine keep reading the same ones
as they come up. Looking at the past quarter. Third quarter AD revenue was fifty billion, that's a beat the street was looking for. Forty eight point fifty nine billion. Third quarter EPs a dollar five versus six three a share. That's your over year, So we'll look for some color on that one, and then just looking at go ahead.
I just also want to point out too here just going through their release here, there does appear to be a pretty large charge that the company took in the most recent quarter. This is a non cash income tax
charge of fifteen point nine three billion dollars. Meta though does say this is a one off event, and I just want to be very precise in the language here and that they do still see their fourth quarter twenty twenty five tax rate in the range of twelve to fifteen percent, which would be in line with what the
street was looking for. But that does appear to be where we're getting some of the reaction and one of the reasons why you did see a little bit of softness in that bottom line number for the quarter that just was. Let me just dive a little bit deeper into it and try to get you some more details.
Yeah, we'll continue to follow that, but, as Romaine said, could explain some of the negative reaction that we're seeing right now. Meta shares now down by more than seven percent. I do want to go to this line in the release. We have a lot of focus, of course, when it comes to Capex Meta. They expect full year twenty twenty five total expenses to now be in the range of one hundred and sixteen to one hundred and eighteen billion.
The prior outlook had been for one hundred and fourteen to one hundred and eighteen billion there and they also say that our current expectation is that capital expenditures dollar growth will be notably larger in twenty twenty six than in twenty twenty five. This has really been the story for a lot of these Big seven names, but also for Meta particularly.
Sorry, I do want to go back to that tax issue here with Meta, and this is something that Zuckerberg and his team are going to have to address on the call. They talk about the one big beautiful bill, basically the big budget stimulus that was passed earlier this year. They did say that they expect a significant reduction in their federal cash tax payments for the rest of the year because of that bill. However, they're saying that for the quarter that just passed, they had to recognize evaluation
allowance change that basically amounted to a sixteen billion dollar charge. Again, they are saying that this is a one time charge and then effectively they will revert back to something that actually a little bit less with regards to the effective tax rate for the current quarter, the current fourth quarter that we're in.
Yeah, The company continues on their romains, says net income would have increased by fifteen point nine three billion to eighteen point six four billion compared to the reported net income of two point seven to one billion dollars. The company also saying Mark Zuckerberg specifically saying that leading the industry when it comes to aiglasses, which we know that and he sees a big opportunity there, A lot of
analysts are a big opportunity there. He says, if we deliver even a free action of the opportunity ahead in the next few years will be the most exciting period in our history.
All right, Well, those are some big words, but let's tear our eyes away from Meta for just a moment and talk about eBay, also reporting earnings fourth quarter net revenue that is seen between two hundred and two point eight three billion dollars to two point eight nine billion dollars. The estimate had been for two point eight billion dollars,
so a bump up of that range. Take a look at shares down almost nine percent at this point though, so certainly some disappointment coming through when it comes.
To eBay, some disappointment as well when it comes to Carvana. Those shares down ten percent in the after hours trade, with third quarter EPs coming in at a dollar three a share, revenue coming in at five point sixty five billion dollars. But here's your guidance. The company says if full year EVA DAD will be at least two point
two billion. It previously pretty much guided towards that. It had a range of two to two point two billion, so maybe potentially trying to nudge slightly above that with regards to expectations, we should point out though the company is also saying here with regards to retail unit sales, one hundred and fifty five thousand, nine forty one. We'll
just round up to one hundred and fifty six thousand here. Again, that did beat the average of analyss essiments, but there was a whisper number out there that was a little bit higher, maybe partly responsible for why you're seeing the shares down in the after hours trade.
Yeah, it costs an expenses to you up about thirty two percent year over year. Kurt Wagner though on our live blog saying talking about this net income and how we see this shortage and then attributing it to this one time tax charge. Definitely a lot of questions on what this is because it does feel like it's come out of nowhere.
Sorry, one quick one otch botlet crossing the wire right now. Adjusteddps coming in line with estimates are twenty nine cents a share. Revenue roughly coming in line with estimates at three billion dollars. Comp sales lower than estimated, coming in at point three percent. The street was looking for a gain of about one percent here, So a little bit light with regards to comp sales growth. Also a little bit light when it comes to operating margin fifteen point
six fifteen point nine percent. It was looking for sixteen point six.
And while we're here, let's just talk about Service Now really quickly boosting their full year subscription revenue forecast, also beating estimates when it comes to the look back subscription revenue now seen between twelve point eight four billion dollars to twelve point eight five billion dollars. The previous guide was for twelve point seven eight billion dollars to twelve
point eight billion dollars. So you can see, of course, a little bit of a boost there to Service Now when it comes to that full year subscription revenue.
All right, so Microsoft down three point three percent, You've got a Alphabet up about three and a half percent, and you've got Meta down about five point seven percent. So those are big ones that we'll keep a watch on as we go into those calls with Alyason Investors.
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