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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 Stenovek Romaine Bostik, and Katie Greifel.
All Right, so, finishing off our best and worst levels of the session, taking a quick look at the big caps, the S and P five hundred, KTI three hundred and sixty three names gaining ground today, one hundred and thirty nine to the downside.
Yeah, it's interesting. There are more gainers than losers in this market, and you can see that at the sector level as well, as told by our friend the Circle, Big Tech. That's the reason why down about one point nine percent. As a sector that's going to be a giant weight lower on the overall index. Communication services, consumer discretionary also not having too great of a day in terms of what did perform today, Energy hire by more
than two percent, Materials, real estate, and healthcare. Of course, we know it was a big day for Eli Lilly Carrol.
All right, let me get to two of the top gainers in the S and P five hundred, super Micro up fourteen percent in today's session, or just shy of fourteen percent, certainly a now performer, this one jumping on a strong outlook. Company gave a forecast for sales in the current quarter that signals strong demand for its gear
to run AI data centers. So a lot of optimism there, and I just want to flip on over quickly to Eli Lilly again top performer in the s and P five hundred to gain of ten percent, provided an upbeat sales forecast for the year today. So some outperformance there. And we've got Qualcomm crossing.
Yeah, Qualcomb rning is just crossing the wire, the chip maker basically saying that for the first quarter, the fiscal first quarter adjusted EPs did beat three dollars and fifty cents a share the street for looking for three forty one twelve point twenty five billion dollars in revenue, basically in line with street estimates for the current quarter. The forecast adjusted EPs for the second quarter two dollars and
forty five cents. That's light. The street was looking for two to sixty five And on the revenue side, the company says look for about ten point two to eleven billion dollars in revenue. Those shares right now down about six percent.
All right, let's get to alphabet here as well. Alphabet here's one of the big headlines. Twenty twenty six Capex seen between one hundred and seventy five billion to one hundred and eighty five billion. The estimate was for one hundred and nineteen point five billion dollars, so certainly ahead of those estimates there. In terms of fourth quarter revenue, it looks like that beat estimates, coming in at one hundred and thirteen point eight three billion dollars. The estimate
had been for just above one hundred and eleven billion dollars. Here, Operating income also actually coming in a little bit lighter than expectations thirty five point nine billion dollars. The estimate had been for thirty six point nine five billion dollars. And one more before we move on, fourth quarter Google Cloud revenue coming in at seventeen point sixty six billion dollars. The estimate had been for sixteen point two billion dollars.
You can see the shares lower currently by about three percent as traders parse through this.
Yeah, Katy, I know you said that CAPEX number, but it's worth repeating. One seventy five to one eighty five billion is what the company sees for twenty twenty six. The estimate was for one hundred and nineteen and a half billion dollars. Hey, I do want to move on over to ARM Holding shares in the after hours of ARM Holdings down more than ten percent as we speak. Third quarter adjusted operating income came in above estimates. Third quarter total revenue came in above estimates at one point
twenty four billion dollars. Third quarter adjusted net revenue coming in at four hundred and fifty seven beating estimates. I'm just looking for the outlook here. We're getting some not quite seeing an outlook at this point. Oh, here we go. Fourth quarter revenue one point four to seven billion to one point four eight billion dollars. That's ahead of estimates of one point four to three billion dollars. Shares in the after hours of ARM Holdings down ten point four percent.
Yeah, all right, so ARM taking a hit here in the after hours. Let's bring up the numbers for Alphabet once more, because that stock we saw under some pressure. I got to go back to the capex expenditures right right now, Shares of Alphabet are down six and a half percent here seeing twenty twenty six, Capex one hundred and seventy five billion to one hundred and eighty five billion dollars. The Street estimate way below that at one
hundred and nineteen point five billion. Again, some questions maybe among investors these companies in terms of valuations to spend, you know, looking for the ROI on this, I'm just going to Gemini monthly active users. Of course, Gemini their AI tool seven hundred and fifty million monthly active users. We're seeing that, so I.
Want to know how they measure that though, like Romane, is that is that people who are using Gemini as a standalone app or is that people who are like me who are using it as part of Google. That's a good question because it's integrated now across platforms. You can do this from you can use this in Gmail now.
Yeah, and it is a good question. And I mean, we'll try to get some answers a little bit later out of some of our guests on the clothes who might have that. But it gets to this idea too as to how we're measuring sort the future growth. And one thing I want to go back to is the cost side. I mean, I know Capex is the big focus. But you talk about a company growing revenue at about a fifteen percent clip costs overall are also basically matching
that as well. And of course when you dive deeper into the actual capex and research development costs, that goes up even higher. Now, obviously there's a promise of something there, and if you believe what's underbrige I is saying in the earning statement here, he does see phenomenal growth for that Gemini, for the new Gemini rollout, and maybe that becomes a salve tim with regards to that cost spend.
Yeah, shares of Alphabet following as much as seven and a half percent on that higher capex. But some companies are beneficiaries of that. If you take a look at Nvidia after hours, that's up one percent on this idea of Alphabet spending more than expected Katie on capex, right, It's.
Interesting because Alphabet is the latest example of a big tech company coming out and giving a very big CAPEX guide and where you're seeing the reaction in shares here though. But that's a good news of course for some of those companies, such as in video.
But also think about how much they've ramped up, right, I mean, we talk about a company that was spending like less than half of this in terms of capbags just a year ago, right, And so the question is where's the return? Have we seen it already? Are we going to see it later this year?
Well, let me just go to the press release because Sunda Puci CEO of Alphabet and Google saying we're seeing our AI investments in infrastructure drive revenue and growth across the board. And so he says to meet the customer demand and capitalize on the growing opportunities. He talks about that CAPEX number, But I also think, you know, you need to look at, you know, growth across some of
the other businesses. YouTube's annual revenue surpassing sixty billion across ads and subscriptions, so monetizing that they say they now have over three hundred and twenty five million paid subscriptions across consumer services, and they talk about adoption for Google One and YouTube Premium and Google Cloud ending twenty twenty five at that annual run rate of over seventy billion, representing a wide breadth of customers driven by man for
AI products. So digging a little bit deeper into this on the call will certainly be important chairs a look at Alphabet went down about one percent here.
Yeah, and it gets to this idea too when we talk about the AI spen and of course it was just a few quarters ago where these companies were being
rewarded for that capex spend. But we talk about this idea too of the outperformance that we've seen in Alphabet, and we should point out it's still not a really a little barnburner of a stock, but compared to its other you know, mag seven brethren here, it has been a phenomenal outperform and against the idea that maybe investors they're looking at the Microsofts and some of the other names in that space and realizing it may be at least among the megacaps and maybe Alphabet might actually be
a bit better of a value proposition.
And just quickly before we go back to that capex figure we were talking about in Video rising and the wake of these results Broadcom too. If you take a look at the function SPLC on the Bloomberg terminal, when you take a look at Alphabet suppliers in video Broadcom rate at the top there, so this huge capex forecast coming from Alphabet once again, that is great news for their suppliers.
All right, The stock shares of Alphabet still down roughly two percent.
Here in the aftermarket the 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.