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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 in the move today. I'm Tom Keen with Paul Sweeney and Bloomberg's John Tucker.
So Disney reporting sales. The sales fell short of expectations, and big budget films like the new Avatar picture that's going to weigh on results. Revenue for the fourth quarter a little change at twenty two and a half billion dollars. The earnings a dollar eleven a share, So that's a beat. Disney's entertainment division faces a number of challenges on several fronts, streaming films and TV. They predict three hundred and seventy five million dollars in operating income from online video in
the first quarter. That's higher for the business, higher profit, but Wall Street was expecting more. You also have these expenses tied to z Utopia two and Avatar fire and ash that's going to reduce earnings by four hundred million dollars. I got to wonder why they're releasing Avatar. What December seventeenth, I think, yeah, you do not have to capture a lot. I know, I don't get it. Usually they do it right before Thanksgiving. Then you have the theme parking, cruise
unit experiences. They're gonna have one hundred and fifty million dollars in plant expenses in the first fiscal quarter, new ships and dock work for the.
On they're doing the launching had two or three new ships, and each of one of those ships is like a billion dollars.
I went back and look, you can do this in the Bloomberg A ten year per year return of Disney is one percent per year. Yep. Is it a failed blue chip?
I mean, do we It's a tough business, and it's a business that's dealing with all this disruption from the Internet, Netflix. The whole industry has been on spack for a decade.
How much competition are they facing from like comcasts for the entertainment division.
Yeah, they are, they are. I mean, it's it's competition. But the theme parts are just a rock steady business, thirteen fourteen to fifty percent profit growth every single quarter.
Okay, onto the network equipment giant Cisco Systems boosting the forecast showing progress in their effort to capture more AI spending. The company this is the top maker machines that run computer networks and the Internet. They now expect sales of as much as sixty one billion dollars in the fiscal year that ends wedd in July. That's about a billion more than they previously expected, higher than Wall Street estimates.
Cisco also increasing its earnings forecast, which again top analyst predictions. The CEO there, Chuck Robbins, is the need for secured networking in AI is helping fuel demand and let me finish up with anthropic not on a lot of people's radar, but it's kind of interesting they spend they're going to spend fifty billion dollars to build custom data centers for our official intelligence in a number of US locations, including
Texas and New York. I have yet to hear any political pushback on a significant scale about the AI spending in places like particularly in New York and Texas, where you do have significant power problems because as you know, they have an independent gridexas Texas, they do they're going to be competing with the likes of US for electricity demand, and the.
Guests that we've got in that are hugely qualified and this may clear the grid and the capital cost of the transmission. YEP is the key item for the pros.
Yeah, that's going to be the gating issue. That's the gating issue.
But still the gating issue for the politicians is our electric bills.
Yeah, so anthropics as these news sites they say, are going to start coming online throughout twenty twenty six, the first major data center build out that the AI firm has taken on.
A direct stockmover's 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.