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This is the closing bell on the stock movers report the company's making moves at the close of US trading with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greyfell.
All right, guys, and just taking a quick check here on the S and P five hundred. It's funny I had and I earning Zapp and I was just like, have they come across yet? You've got one hundred and ninety names, Katie to the upside, three hundred and thirteen to the downside.
All right, let's sick look at the sector performance as we count down. Slightly more losers than winners in terms of what did perform today, Energy putting up a game of about seven tenths of a percent, Tech of about six tents of percent as we await these ginormous earnings. Materials,
communication services also in the green. In terms of what didn't perform so hot today on this sped day, real estate down by nine tenths of percent, Consumer staples Carol also off by about eight tenths of a person.
Microsoft burning is crossing the wire right now. First here on Bloomberg, we take a look at the headline number revenue in the most recent quarter, eighty one point two seven billion dollars. The street was looking for eighty point three EPs, coming in at five dollars and sixteen cents a share. I don't have a comparison for you just yet, but at the here's the intelligent cloud business thirty two point nine to one billion dollars, relatively in line with estimates.
The street was looking on.
Average for thirty two point three nine And we shall also point at Azure and other cloud revenue XFX that was up thirty eight percent in the quarter, right around what the street was looking for.
All right, all right, let's go to Meta also crossing the Bloomberg terminal as we speak.
I'm going to go right to the outlook.
The first quarter revenue looking at fifty three point five billion to fifty six point five The street estimate was for fifty one point twenty seven billion. The stock right now bop it around, but lower, just about nine tenths to the downside.
Now maybe kicking a little bit higher.
Let's go to the fourth quarter revenue fifty nine point eighty nine billion, better than the street estimate of fifty eight point forty two billion AD revenue. So important, let's see whether not all those AI investments are paying off when it comes to getting more eyeballs and more AD revenue.
Fifty eight point fourteen billion. That is a beat.
Fifty seven fifty six point seventy nine was the street estimate, and also EPs eight dollars eighty eight cents a share versus eight dollars and two cents the year before. So again that stock though a little bit lower, down about one percent here in the aftermarket.
That capex number, yes, twenty twenty six company saying cappex one hundred and fifteen billion to one hundred and thirty five billion. The street was looking for about one to ten. So Meta and more importantly, Mark Zuckerberg still all in here on the AI build out.
Well to that point, Mark Zuckerberg saying that we had strong business performance in twenty twenty five. I'm looking forward to advancing personal superintelligence for people around the world in twenty twenty six. Lofty ambitions, of course, but as you can see in the after hours reaction, investors want to know how do you translate that into actual profits and revenue?
And the bottom line here, I want to.
Go back to this this cap capex here, it's in the press release, it's a headline in the Bloomberg. We anticipate twenty twenty six capital expenditures, including principal payments on finance leases, to be in the range of one hundred and fifteen to one hundred and thirty five billion dollars, with year over year growth driven by increased investments to
support our metas, superintelligence labs efforts, and core business. That is so much higher, and that is also a much bigger range than I would have anticipated up to one hundred and thirty five billion dollars to spend on capex.
And just adding to that, the total expense number one hundred and sixty two to one hundred and sixty nine billion. Street was looking for one fifty one. And this really gets to the idea I mean, I mean, we can quibble over the numbers from a fundamental basis, but we've seen this before with Mark Zuckerberg, where when he basically decides he wants to go all in something, whether it was the metaverse and the no Legs people, or are some of the actual hardware stuff.
He goes all in.
Yeah, it doesn't always sort of pay off, but he certainly makes big roles of the diet.
To your point, super intelligence labs, the idea of super intelligence, artificial intelligence. That's throughout the press release. The word metaverse not in here at all. This company rebranded from Facebook to Meta because Mark Zuckerberg a few years ago was going all in on the metaverse. That pivot it's took completely to AI.
I'm going to go back to the Microsoft right now, down about seven point six percent here, can I just one but just.
At that point for you move on too. I mean the Reality Labs business. I mean, to your point, Tim, that's down twelve percent year over year. There's no real business there. It's nine hundred and fifty five million dollars, which would not be an issue if this wasn't like, you know, a fifty eight billion dollar quarter com.
Totally, this is an advertising company, yep, full stop.
No.
So when it comes, you know, to that pivot to the metaverse, remember earlier this month that Bloomberg reported that Meta is beginning job cuts basically in Reality Labs as it shifts from the metaverse to its AI devices. So, yes, Zuckerberg tends to go all in, but that doesn't mean also that he doesn't occasionally shift away as well.
All right, I want to go back to Microsoft because it's down about seven percent here in the aftermarket this after the company. Again, CAPEX is something we're talking about a lot for these companies, but also Azure always important for this company. Second quarter Azure another cloud revenue X currency up.
Thirty eight percent. That's what the street was expecting.
And I think it's safe to say with the spend that we continue to see with these companies, people are looking for even better numbers when it comes to that.
Yeah, actually, guys, let's go up the Tesla here. These numbers starting to trickle out right now. The EPs numbers coming in right now at fifty cents a share.
That does look like a beat.
The street was looking on average for about forty five cents.
That's all the numbers we have right now. It's going to take a.
While to pass through the Tesla released because of course they don't follow normal formatting for anything here, but those shares slightly lower in the after hours Train one percent down.
Yeah, absolutely, it's going to be interesting to get some of these figures here. It is interesting to see that price targets from the seal side have been rising even as Tesla's profit outlook really in question. You can see shares now down about one percent here as we start to get some more of these numbers.
Ten okay, fourth quarter grows margin d point one percent, that beat estimates of seventeen point one percent. Fourth quarter operating income coming in above estimates at one point four to one billion dollars. Fourth quarter revenue coming in just shy of twenty five billion dollars at twenty four point nine billion dollars, that was just below estimates. Fourth Quarter earnings per share coming in at twenty four cents versus
sixty six cents. That's year over year, so that was not an estimate, but twenty four cents for fourth quarter EPs, fourth quarter free cash flow one point four to two billion dollars. The estimate there was for one point five to nine billion dollars.
I mean to be fair, and just listening to some of our team talk about from the Bloomberg Intelligence team, you know what you want to hear from Tesla. There's a lot of folks want to hear about self driving cars, autonomous cars, the taxi, and they also want to hear about robotics because that is seen as the future of this company.
Yeah, free cash flow in the quarter for Tesla one point four to two billion, that's slightly below estimates. But I want to go back to Katie's point too, because I think she was referencing the great story that was on the Bloomberg terminal just about how insane this valuation and the idea that a lot of investors don't think it's insane. This isn't really a bet on cash flow or a profitability.
He's not in the short term or cars.
It's a bet on exactly tim It's bet on these moonshots that we know Elon Musk is great at at least advocating for. Whether he actually delivers on them, that's a whole another question.
But he is the consummate salesman.
He has focused our attention less on those cars, less on the cash generator from those cars, and more on whether Katie's going to have a humanoid robot to make her omelin in the morning.
Which he did say last week at Davos she would have in the next year.
Yeah, theoretically, I will say, to put it even more directly, I mean it's a bet on Elon Musk, specifically Elon Musk's ability to sort of engineer those moonshots. You think about the Musk premium in relation to Tesla's shares, We've never actually exactly found out what that is, but I mean you compare Tesla to some of the other car companies out there, It's in just a completely different league, and it has been for years now.
Yeah, it's not even valued as an auto company. On that Investors valuing this report least the knee jerk reaction now higher by three point eight percent. Shares did initially drop on the release, but now shares are up for Tesla three point eight close to four percent.
The company saying that it does plan to invest further in those autonomous robots and the infrastructure for that, also says that cybercab, the Semi and Mega Pac three that's still on schedule. Katie Greig Philip for twenty twenty six. So elon Musk once again laying out some of these long term looks here and saying that maybe at least this year we might start to see some of that stuff come online.
Well, you can see that faith express right now in the after hours reaction. Let's quickly pivot here to international business machines IBM. The red headline here that fourth quarter revenue came in at nineteen point six y nine billion dollars, that is above the estimate of nineteen point two to one billion dollars. They see their full year cash flow increasing by about one billion dollars year over year.
Their fourth quarter free cash.
Flow came in at seven point five five billion dollars, that is above the estimate of about six point eight five billion dollars. IBM shares high by about two percent.
Right now, All right, let's go back to Tesla again, getting some commentary about some of the future perhaps revenue drivers, and this is what investors are kind of banking on. But we are talking about remain mentioned this the cybercabs, Semi and Megapac three on schedule for twenty twenty six. That's this year Tesla to invest further in autonomous robots, infrastructure and ramping six new production lines across products.
And so we're continuing to look now at.
Tesla now up about three point four percent here in the aftermarket.
You know, I'm going through some more numbers here coming out of Microsoft. Here we're talking about a company with eighty one billion dollars in revenue in the most recent quarter and operating income of about thirty eight billion. The company is saying though, of that income, at least on the net income basis, about seven point six billion dollars of that actually came from its investments, again, on its
investments in open AI. I know, Katie Greifeld, you're always concerned about the oral boris here, this sort of circular thing here, but at least in the short term, maybe a little bit of a benefit fit all some of those investments here, so contributing to the company's bottom line.
There you have it, all, right, Just to quick check, Meta Platforms up about three percent here in the aftermarket, Microsoft down about five point three percent, and then we've got Tesla, which has been bouncing around. That one is right now as I pull it up, up about three point six percent here in the aftermarket. So we'll be looking forward to those calls with the analyst and investment community.
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.