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Let's take a look at some stocks on the move today. I'm Tom Keen with Paul Sweeney and Bloomberg's Lisa Mateo.
Good morning, Good morning. Yeah. I'll try my best, So I'll start with the Intel ticker i NTC the share.
There you go.
You got the sound effects too. In the little und shares have been up as much as four percent. So here's what the deal sources selling Bloomberg. Intel approached Apple about an investment in the company. They also talked about how to work more closely together. Still in the early stages, might not even come to an agreement. But it's not just Apple. They're saying that they're talking with other companies too.
But the thing is is that Apple was a longtime customer of Intel, but it switched to its own in house processors the past few years. So the Apple chips are now produced by Taiwan Semiconductor manufacturing. But they're saying that, you know what, the Apple is likely to stick with their own.
I'm a living breathing example of this. My main computer at home is what's called a twenty nineteen Intel NEC and it was back before Taiwan Semi yep and all that, and it's all it's not at obsolescence yet, but you know, you know where they could, I mean you've been. It's when Dana Iives goes, that Ludlow goes and they do. They stand on stage and do the touchy only thing. They won't let me in. They said no ties allowed.
But Lisa, seriously, they they're switching over and right now they have a plan to phase out the computers like I have at home. Don't tell missus Keith.
And look at the I mean this Intel stock. Let's put this into perspective. This stock was in the doghouse. It was for years at so for the past five years compounded and your return of negative seven percent per year, this year the stock is up to fifty five percent. So it feels like it has suddenly caught the AI tailwind that it's so desperately needed. And I well, the government's in for teen center and Videa's in for five. Maybe Apple's going to be in saw me. This is
their time to shine. Soft Bank so maybe maybe maybe this tike brings them in from the wilderness, the tech wilderness. Next we see.
Okay, Oracle, we'll go there, O r C, stayeverye are you're lucky? I'm not going quantum. Okay. SO shares are down as much as three percent. It comes after they kick off one of the biggest bond sales of the year. So this was eighteen billion dollars US investment grade bonds. This came out yesterday. So it's ramping up spending right that we've been talking about it to meet those needs of all the AI boom. SO sources are saying demand
peaked at nearly eighty eight billion dollars. So they're issuing dead in six parts. That includes a rare forty year bond. So what can the proceeds right from this sale be used for a few things? Okay, you got capital expenditures, few future investments or acquisitions, other general corporate purposes. But the thing is Oracle begun to fulfill these massive cloud infrastructure deals with customers like open Ai, customers like Meta.
So over the next several years, Oracle there's projected it has been hundreds of billions of dollars to rent and power down.
Look at this year I brought there. I literally stopped a shade yesterday. But the number I had at the time was a printed fifteen gazillion yes, say upside you just said eighteen gazillion. Ye Oh, seriously, Paul knows more about this than I do. They literally make five.
Phone calls right, yeah, this is a fly by.
Call called blackrock.
They called JP Morgan, what called existing holders and say do you want to top up? Here's what's happening here in fiscal twenty two.
You gotta live in the New Jersey shore to say.
Top up, top up.
That's literally what I say. It's a top up called you want top up your position? Fiscal twenty two four and a half billion of capital expenditures this year thirty five billion capital. So that their negative free Cashel because they're saying we're just throwing money against his AI think and hope for the best.
My favorite screen, folks, for those of you were the terminal in the car, the WACC screen. Tom Sekunda told me about this. Let's pretty good. Way did average cost to capitol screen? Oracle. Lisa's like, why are we doing this?
Oracle?
Ready? Thirteen percent long term debt one percent, short term debt blended fourteen point one percent eighty six percent equity, so they got that's a lot of bonds compared to the other mag five six, seven eight, but still way below like Ford Motor. You know, right, others do we beat that to death?
We did?
Is there something to say, don't you do quantum?
I'm not doing quantum?
Toothpaste?
Hell to CarMax okay, k MX. It's been down as much as thirteen percent, all right. So they had big, big Ernie's for share sales shortfalls in the second quarter. The reason why it looks so big compared to last quarter the previous quarter, people rushed to get cars because they were trying to get ahead of the twenty five percent riffs on the imports from April. So that's the reason why the tick down now. They also had losses.
If you look at the loan side of the business, Carmack's Auto Finance, their income decreased more than eleven percent. Their provision for loan losses was one hundred and forty two million compared to one hundred and twelve million in the prior year. Second quarter, but it's starting to affect other stocks like Carvana.
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